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BeElite on 16 November 2014
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Machiavellian said:
binary solo said:

Just as well that wasn't the statement he made then. He said Xbox has been a financial disaster. Somewhat exaggerated but the essence of it is true. Across the 3 generations the net financial effect on Microsoft has been negative. That the devices division has been profitable is down to other products in that division. 360 was for sure profitable on an annual basis for MS for a few years, but not long enough to make up the losses before and after. Now MS is giving away 3rd party games as well as cutting the price of Xb one. No way Xb one is making MS any profit this year. But the losses will be hidden from the public because the division will make profit eslewhere.

Before anyone can call the Xbox division a financial disaster, its best to understand what the division means to MS.  There is a huge difference between how forum poster view something then how the company making the product view things.  Forum poster live for the moment to moment sales and think with their party lines more than with how a company views a product in their portfolio.  There are still people who believe that the PS3 was a profitable and valuable product to Sony even though the  numbers show it was a total disaster for the company and pretty much put them in the red for years.  

Also products are not always viewed on how much profit they bring but also about market share and what that market share and branding does for the overall products within a company.  For the Xbox division, the services that are behind the actual hardware is more important to MS than profits.  Expanding the Name and generating market share is probably more important to MS as a company then what gamers conceive or believe is important.  This was the case with Sony with the PS3 where they cut everything they could including any profits for years to gain market share because keeping the brand strong and market share high keeps the company product in high visibility for them to sale their other products like PS Now, Music and Videos, games and Now TV.

 

If post are going to take this narrow view of Sony and MS console then they are not even close to understanding how large corporations like them work. 

Its a financial disaster like no other for them, thast a fact.  Its so bad some have called for it being span of or even shut down. 

What you are spinning is a bs fairy tale, facts is profits above all.  Sony blew billions on PS3 casue they though it services and BR would make it back.  Profit motivated them.   MS is no different, there is no fanboyish lets keep it going casue we can mentality or we can afford it we got billions.  MS had a long term strategy for Xbox, and the third one X1 was to make back all the losses and dominate.  Clealry its failing big time.