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Forums - Sales Discussion - Is Microsoft the only one of the big 3 who knows how to run a video game business at this point?

With latest quarterly results in and Sony and now Nintendo bleeding money, it becomes that Microsoft is currently the only profitable player in videogames. Sure some will be quick to point to the past but I'm talking about for the recent times.

Moreso, Sony has a history of years of bleeding money so nothing new for them, but to me both the Wii U and 3DS are bad hardware and they are Nintendo's future, so I think Nintendo has a long stretch of struggles ahead of them as well.



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New platforms are expensive to introduce and MS are the only ones currently not introducing one. Also the Xbox brand has been bleeding hundreds of millions for years and cost billions to establish and will need another 15 years of profit to make the money back. 

Being the only one bassed in the USA where they make they majority of thier sales also helps with the weak US dollar which hurts Sony and Nintendo.



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zarx said:

New platforms are expensive to introduce and MS are the only ones currently not introducing one. Also the Xbox brand has been bleeding hundreds of millions for years and cost billions to establish and will need another 15 years of profit to make the money back. 

Being the only one bassed in the USA where they make they majority of thier sales also helps with the weak US dollar which hurts Sony and Nintendo.


Uhh no. 360 is likely already profitable for it's life, which leaves just the ~4b they lost on Xbox 1. Additionaly, it's been all smooth profitable sailing for 360 for years now, and like PS2 it will have many profitable future years. All wild speculation on my part but I'm guessing 360 could erase all Xbox 1 losses by the time it's said and done. Leaving their next system to start out in the black.

Doesnt sound impressive but for a company like MS to break into videogames and create a worthy brand like Xbox, get millions of boxes on top of TV's, create the XBL network which is used to sell movies and so on, and not lose any money over it? Pure gold for them.

And Vita is FAR from the only reason Sony is losing money. In fact they're losing less money now that they're introducing Vita than they were before. Ps3 is why they lost so much money in the past. Now they are doing better because PS3 hardware is profitable.

 



zarx said:

New platforms are expensive to introduce and MS are the only ones currently not introducing one. Also the Xbox brand has been bleeding hundreds of millions for years and cost billions to establish and will need another 15 years of profit to make the money back. 

Being the only one bassed in the USA where they make they majority of thier sales also helps with the weak US dollar which hurts Sony and Nintendo.


Havn't been doing your homework. X360 is practically break even for the division and if profits remain the same, the entire division will break even (yes even that 4.2 Bill Original Xbox diaster) will be cleared within 3 years.



 

MS is gonna force Sony to charge for online for everyone. It's unfortunate, but money's money I guess.



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Seece said:
zarx said:

New platforms are expensive to introduce and MS are the only ones currently not introducing one. Also the Xbox brand has been bleeding hundreds of millions for years and cost billions to establish and will need another 15 years of profit to make the money back. 

Being the only one bassed in the USA where they make they majority of thier sales also helps with the weak US dollar which hurts Sony and Nintendo.


Havn't been doing your homework. X360 is practically break even for the division and if profits remain the same, the entire division will break even (yes even that 4.2 Bill Original Xbox diaster) will be cleared within 3 years.


admitadly my info is pretty old...

Wasn't the bill for the OG Xbox ~$6 billion with ~$4 billion in losses the devision first turned an operating profit (as in actually made more than they spent or invested not just more than the costs that year) in 07 with $89 million in operating profit since then they have made more each year but I don't think they have made back the billions they lost. But if you can provide the data showing that they have made a net profit over the life of the Xbox brand I would love to see it.



@TheVoxelman on twitter

Check out my hype threads: Cyberpunk, and The Witcher 3!

even if zarx one point was incorrect he still had 2 points which went ignored.



zarx said:
Seece said:
zarx said:

New platforms are expensive to introduce and MS are the only ones currently not introducing one. Also the Xbox brand has been bleeding hundreds of millions for years and cost billions to establish and will need another 15 years of profit to make the money back. 

Being the only one bassed in the USA where they make they majority of thier sales also helps with the weak US dollar which hurts Sony and Nintendo.


Havn't been doing your homework. X360 is practically break even for the division and if profits remain the same, the entire division will break even (yes even that 4.2 Bill Original Xbox diaster) will be cleared within 3 years.


admitadly my info is pretty old...

Wasn't the bill for the OG Xbox ~$6 billion with ~$4 billion in losses the devision first turned an operating profit (as in actually made more than they spent or invested not just more than the costs that year) in 07 with $89 million in operating profit since then they have made more each year but I don't think they have made back the billions they lost. But if you can provide the data showing that they have made a net profit over the life of the Xbox brand I would love to see it.

They lost $4.2B on original Xbox, then 06/07 fiscal years which was 360 debut and RROD fiasco (with $1b included) they lost $3.2B, in 08,09,10 and 11 they've profited every year to the tune of $2.7B, but most notably $1.3B this last year alone. -$4.7B is the overall loss of the division now with $500 mill to go before breaking even since the 360 debuted.


But with all of this we have to remember other products that had an impact in the division like the failure of the Kin and Windows phone ect.

Going forward MS have a solid income from Live, and I image Kinect is a great deal of that profit this last year. So yeah, they should be break even in less than 1 years lol, unless they go for a PS3 style system next gen and lose buckets, but MS are obviously savvy in the industry these days .. I don't think we'll ever see them go down that road again.



 

With the yen-dollar situation, things are just going to get harder for those two.



RolStoppable said:
kowenicki said:
Well Nintendo have always done well financially historically, but they have really dropped the ball frecently.

SCE has never made a dime (net) if I am correct. Incredible when you think about the "success" of PS1 and PS2

MS seems to have a model that will work going forward and is based around a locked in audience via LIVE subscription.


"frecently", a combination of frequently and recently. I like it.

On topic: Right now it doesn't look like anybody really knows how to run a video games business. Since we are talking about just the last quarter here, Microsoft hasn't been doing that great either with a profit in the, I think, low double digit millions. That's really not all that special considering that they are the only ones who have a locked stream of revenue with ongoing Xbox Live subscriptions.

MS is noutorious for low FYQ4 results though, happened last year and this year again even with profits in every other Q, I think maybe they push back losses for the year into this Q or something, because it rarely adds up.