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Forums - Microsoft Discussion - Xbox One missteps may end up costing Microsoft $1 billion

steverhcp02 said:
Dark_Feanor said:
I don't understand the article wording:

Will MS loose 1b by cuting Kinect or that is this the revenue they lost ( 2mi consoles x $500 ) advantage Sony gain early on.


I agree, from teh way I read it Pac is saying over the life of the console its costing MSFT 1 billion. Which he could not know....no one could.

It most certainly has NOT cost MSFT 1 billion dollars LTD so it cannot be up to now that hes referring to.

Moral of story, Pachter.

Agree, anyway if he meant missed profits, and not actual losses, it coud be a reasonable prediction. Worse mistakes in the past on XB and XB360 cost MS larger sums (in BSoD and disc scratching cases they were real losses, in the awful deal with NVidia for XB there were both losses, investments not recouped and missed profits due to the impossibility to competitively price XB as time went by), this time we have a bad series of bad mistakes, but not as horrible as past ones, and all of a kind that causes missed sales, not actual losses.



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think-man said:
Just because MS has the money doesn't make it anymore okay.

Uhhh... yes it does. These numbers are just speculation, but MS can absorb losses like that better than other companies so that makes it less of a problem.

Also, bear in mind at some point the PS3 and 360 lost billions. The goal is to eventually recover those losses and then some.



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The problem is they ain't even lose any money currently,even just count Xbox division



people are reading this wrong, he said a billion in lost sales, not cost them a billion in actual cash. he is saying the xbox one will sell 1 billion less in sales.

That's how much Microsoft may lose in future sales of its Xbox One console thanks to missteps over pricing of the machine and curbs it tried to place on trading video games, according to Michael Pachter, an analyst at Wedbush Securities.



Well its lost revenue. When I first read the title I thought the Devices division is making a $1bn loss because of Xbox.



    

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kowenicki said:

3 weeks.

it takes MS 3 weeks to make that much in PROFIT. Lol. 

this I'd taken from a Bloomberg interview by the way. Where he also says he thinks the ONE will regain the US.


How is this even relevant? They are saying it is Lost in sales not money......Also, you were OK with the other pachter article you posted, odd that, but this one you are not?



Mr Puggsly said:
think-man said:
Just because MS has the money doesn't make it anymore okay.

Uhhh... yes it does. These numbers are just speculation, but MS can absorb losses like that better than other companies so that makes it less of a problem.

Also, bear in mind at some point the PS3 and 360 lost billions. The goal is to eventually recover those losses and then some.


This argument is so misguided...just because MS can absdorb the losses, you are dilusional if you think MS will keep investing in a business they keep losing money in., THe xbox division is not MS as a whole and have a budget, and mandate like any company. MS is a high margin company, they are not going to keep throwing money at xbox with reckless abandon.



TheBoneCollector said:

MS is a high margin company, they are not going to keep throwing money at xbox with reckless abandon.


But we've seen MS throw tons of money at their phones, tablets, search engine, etc. Sony has also done it with their PCs, TVs, and lost many billions in the process.

The 360 lost billions and eventually became profitable. Sorry, but it looks like MS is invested in X1 for the long haul. The Xbox brand has a nice market share and is a vehicle for pushing other MS products, no point in quitting now.



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Mr Puggsly said:
TheBoneCollector said:

MS is a high margin company, they are not going to keep throwing money at xbox with reckless abandon.


But we've seen MS throw tons of money at their phones, tablets, search engine, etc. Sony has also done it with their PCs, TVs, and lost many billions in the process.

The 360 lost billions and eventually became profitable. Sorry, but it looks like MS is invested in X1 for the long haul. The Xbox brand has a nice market share and is a vehicle for pushing other MS products, no point in quitting now.


What you said has ZERO to do with what I said...MS is not happy about losing money. Also it is totally different then surface, phones which was still new, they are noww making a profit on surface now, and there phones. They have never made a profit on xbox(Overall) and are a long ways from doing so. Sony jkust sold their PC;s and split off their TV division.....

 

They will not keep throwing money at a low margin business like consoles, when they make more in 1 month at there bread and butter business.



TheBoneCollector said:


What you said has ZERO to do with what I said...MS is not happy about losing money. Also it is totally different then surface, phones which was still new, they are noww making a profit on surface now, and there phones. They have never made a profit on xbox(Overall) and are a long ways from doing so. Sony jkust sold their PC;s and split off their TV division.....

They will not keep throwing money at a low margin business like consoles, when they make more in 1 month at there bread and butter business.


I gave you examples of money being thrown around with what seems like "reckless abandon." If the phones and tablets are now profitable, I doubt they have recovered all their losses. Sony has gotten rid of their PC and TV division, but they still lost billions pushing that crap for longer than they should have.

The 360 became profitable and the X1 should be proftiable as well. Those consoles also help push other MS products given Xbox appeals to younger markets. That's why MS in this industry.



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