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Locked: A cut to 299 might not help X1 much

Forums - Gaming Discussion - A cut to 299 might not help X1 much

Lol god damn some people have absolutely no understanding of business finance and a very bad interpretation of data....

I was about to start arguing some stuff but after reading some stuff it's clear useless this thread should die... Too much non sens in it...



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Mr Puggsly said:
Captain_Tom said:

Forgive me as I only read the first 3 sentences of your wall of text (Tone it down next time).  I don't want MS to leave gaming per se... What I want is for them to stop burning money in the Xbox pitt and focus on PC.  They could simply put their real first party exclusives on PC and bolster its catalog.  And yes it is a financial disaster:

http://www.neowin.net/news/report-microsofts-xbox-division-has-lost-nearly-3-billion-in-10-years

Xbox 360 was profitable in spite of losing a lot of money on hardware issues.

Frankly, $3 billion over 10 years is little to MS especially when the company as a whole is still very profitable. Xbox losses have also shrank over time.

Sony on the otherhand has been losing billions in spite of finding success again with Playstation. You should worry less about Xbox and more about Sony.

You brought up the biggest logic errors I keep seeing on this website:

1) Businesses are created to make money, not find interesting ways of wasting it.

2) Yes Sony is in financial trouble, but Sony =/= Playstation.  I am talking about Playstation's Financial success in relation to Xbox. NOT MS in relation to Sony.

3) Sony's total assets are worth $132 billion.  Yes they are having financial problems now, but they are also in the process of getting rid of all of the useless divisions.  They will not disapear overnight.



Imaginedvl said:
endimion said:
Emperorbach said:
Goatseye said:
$350 is moving units, MS needs to replenish retailers with bundles, especially SO white X1.
A $299 H5 Xbox1 slim bundle would cause a black hole in the US.


350 + a game so thats more like 295

you do realize it costs nowhere close to 60bucks to MS to give away a free game right???

You do realize he is talking about what the customer pays at the end and what he gets instead of what it costs to Microsoft to produce/market, right? (??)

makes absolute no sens in the subject at hand in that thread... COGS is all that matter versus total price tag not the perceived price from customer... And there S no such thing as free meal (game)...



Anyway I'm out we get it... XB is 10million shipped of doomed over 12+ months... MS is so fucked...



Trunkin said:
Captain_Tom said:

-As far as I can tell, yes that takes all things Xbox into account.

-This is the best I can find for PS profit:

http://i.imgur.com/1btMQH0.png

It looks bad at first, but if you add up the numbers in just this timespan it is clear that Sony has still profited far more than they lost (Like 50% more).  Also keep in mind that his chart does not include 2011 or 2012 which were the most profitable years for the PS3 with PS+ and so they likely wiped out most of those PS3 losses.  Then throw in the crazy financial success of the PS4 for another year and you can see that they probably have doubled their total investments.  Far better than Xbox.

lol, that does look a lot better than XBOX, but there's still some hope. Xbox has been profitable for the past few years, and, with the exception of this year, they should be profitable for the forseeable future. If they can keep it up for the next decade, they might get into the black overall. If they sell Xbox now they might never recoup their losses. How much is the brand worth, anyway?


That right there is the answer everyone at MS is looking for: "Can Xbox become a consistantly profitable brand?"  So far the X1 was never selling at a profit, and with the new $50 price cut it is turning into another gereration of losses.  Yes, this gen will probably be an overall profitable generation for them.  But is that really enough?

Why spend all this money to take a decade or so making back the money you lost the first decade when your current money could be invested in better (More profitable) projects?  That is what investors are asking. 

The money MS wasted on the Xbox and 360 is gone, forever.  It is in the past.  You then have two choices:

1) Pour more money into the same losing division in hopes that you can some day say "We technically made money."

2) Invest the money into divisions like Windows, Servers, and IT that are making profits now and will probably bring greater returns on every dollar put in than Xbox would.



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Mr Puggsly said:
Captain_Tom said:

Forgive me as I only read the first 3 sentences of your wall of text (Tone it down next time).  I don't want MS to leave gaming per se... What I want is for them to stop burning money in the Xbox pitt and focus on PC.  They could simply put their real first party exclusives on PC and bolster its catalog.  And yes it is a financial disaster:

http://www.neowin.net/news/report-microsofts-xbox-division-has-lost-nearly-3-billion-in-10-years

Xbox 360 was profitable in spite of losing a lot of money on hardware issues.

Frankly, $3 billion over 10 years is little to MS especially when the company as a whole is still very profitable. Xbox losses have also shrank over time.

Sony on the otherhand has been losing billions in spite of finding success again with Playstation. You should worry less about Xbox and more about Sony.

These are the points I try to argue every time but it seems to fall on deaf ears when it comes to the Anti MS Sony fanbase.  Indeed they should be more worried about a PS under a bleeding Sony than an xbox under a top of the rich list MS. MS will continue to support the XBOX brand and that is it - no amount of wishful doom posts is going to change the situation anytime soon. Move on and live with it People :) On a side note the latest weekly numbers are indeed encouraging for MS!



Xbox 360 and Xbox One

Gamertag:  GamertagOz70

Captain_Tom said:
Mr Puggsly said:

Xbox 360 was profitable in spite of losing a lot of money on hardware issues.

Frankly, $3 billion over 10 years is little to MS especially when the company as a whole is still very profitable. Xbox losses have also shrank over time.

Sony on the otherhand has been losing billions in spite of finding success again with Playstation. You should worry less about Xbox and more about Sony.

You brought up the biggest logic errors I keep seeing on this website:

1) Businesses are created to make money, not find interesting ways of wasting it.

2) Yes Sony is in financial trouble, but Sony =/= Playstation.  I am talking about Playstation's Financial success in relation to Xbox. NOT MS in relation to Sony.

3) Sony's total assets are worth $132 billion.  Yes they are having financial problems now, but they are also in the process of getting rid of all of the useless divisions.  They will not disapear overnight.

1) Xbox is also a vehicle for push MS products to the gamer demographics. Again, the Xbox brand has recouped some losses. As I mentioned before the Xbox 360 was a proftiable endeavor and X1 might be as well.

2) If Playstation was losing money Sony would consider selling it. If X1 is losing money they will support it and maybe it will profit down the road. The Xbox 360 lost billions of dollars from hardware failures and still recouped.

3) I didn't say Sony was going to disapear. But you should bear in mind MS is in a good position so that means Xbox doesn't need to disappear. Right now they're weathering the storm and becoming proftiable is still a possibility.

I think I just made the same point 3 times.



Recently Completed
Crackdown 3
for X1S/X1X (4/5) - Infinity Blade III - for iPad 4 (3/5) - Infinity Blade II - for iPad 4 (4/5) - Infinity Blade - for iPad 4 (4/5) - Wolfenstein: The Old Blood for X1 (3/5) - Assassin's Creed: Origins for X1 (3/5) - Uncharted: Lost Legacy for PS4 (4/5) - EA UFC 3 for X1 (4/5) - Doom for X1 (4/5) - Titanfall 2 for X1 (4/5) - Super Mario 3D World for Wii U (4/5) - South Park: The Stick of Truth for X1 BC (4/5) - Call of Duty: WWII for X1 (4/5) -Wolfenstein II for X1 - (4/5) - Dead or Alive: Dimensions for 3DS (4/5) - Marvel vs Capcom: Infinite for X1 (3/5) - Halo Wars 2 for X1/PC (4/5) - Halo Wars: DE for X1 (4/5) - Tekken 7 for X1 (4/5) - Injustice 2 for X1 (4/5) - Yakuza 5 for PS3 (3/5) - Battlefield 1 (Campaign) for X1 (3/5) - Assassin's Creed: Syndicate for X1 (4/5) - Call of Duty: Infinite Warfare for X1 (4/5) - Call of Duty: MW Remastered for X1 (4/5) - Donkey Kong Country Returns for 3DS (4/5) - Forza Horizon 3 for X1 (5/5)

I have been in 4 stores in the last 2 days and while at the counter, saw at least 1 and no more than 3 x1's being sold.



Mr Puggsly said:
Captain_Tom said:
Mr Puggsly said:

Xbox 360 was profitable in spite of losing a lot of money on hardware issues.

Frankly, $3 billion over 10 years is little to MS especially when the company as a whole is still very profitable. Xbox losses have also shrank over time.

Sony on the otherhand has been losing billions in spite of finding success again with Playstation. You should worry less about Xbox and more about Sony.

You brought up the biggest logic errors I keep seeing on this website:

1) Businesses are created to make money, not find interesting ways of wasting it.

2) Yes Sony is in financial trouble, but Sony =/= Playstation.  I am talking about Playstation's Financial success in relation to Xbox. NOT MS in relation to Sony.

3) Sony's total assets are worth $132 billion.  Yes they are having financial problems now, but they are also in the process of getting rid of all of the useless divisions.  They will not disapear overnight.

1) Xbox is also a vehicle for push MS products to the gamer demographics. Again, the Xbox brand has recouped some losses. As I mentioned before the Xbox 360 was a proftiable endeavor and X1 might be as well.

2) If Playstation was losing money Sony would consider selling it. If X1 is losing money they will support it and maybe it will profit down the road. The Xbox 360 lost billions of dollars from hardware failures and still recouped.

3) I didn't say Sony was going to disapear. But you should bear in mind MS is in a good position so that means Xbox doesn't need to disappear. Right now they're weathering the storm and becoming proftiable is still a possibility.

I think I just made the same point 3 times.


1) It is fair to say that Xbox at the very least does allow MS to get their mindshare out there in different demographics.  But again it all comes down to "Is it worth it?"  Only MS can decide that, but it is easier to justify the expenses if the product at least makes a profit.   That isn't debatable.

2) But Playstation isn't losing money.  Also, MS doesn't need to be in a bad possition to consider selling/ending/transforming Xbox.  Again they want to make money off their investments.

3) Who said MS is in a bad position?  Nobody here.  You know what's easier than weathering a storm?  Not sailing into it.



Captain_Tom said:


1) It is fair to say that Xbox at the very least does allow MS to get their mindshare out there in different demographics.  But again it all comes down to "Is it worth it?"  Only MS can decide that, but it is easier to justify the expenses if the product at least makes a profit.   That isn't debatable.

2) But Playstation isn't losing money.  Also, MS doesn't need to be in a bad possition to consider selling/ending/transforming Xbox.  Again they want to make money off their investments.

3) Who said MS is in a bad position?  Nobody here.  You know what's easier than weathering a storm?  Not sailing into it.


1) Agreed.

2) They can still make money from the X1 investment. Espeically if they can avoid huge losses that OG Xbox and 360 had. They're spending money to boost X1 sales, but its likely small compared to losses between 2002 - 2007.

3) Great advice, unfortunately Nintendo, Sony, and MS have all done it.



Recently Completed
Crackdown 3
for X1S/X1X (4/5) - Infinity Blade III - for iPad 4 (3/5) - Infinity Blade II - for iPad 4 (4/5) - Infinity Blade - for iPad 4 (4/5) - Wolfenstein: The Old Blood for X1 (3/5) - Assassin's Creed: Origins for X1 (3/5) - Uncharted: Lost Legacy for PS4 (4/5) - EA UFC 3 for X1 (4/5) - Doom for X1 (4/5) - Titanfall 2 for X1 (4/5) - Super Mario 3D World for Wii U (4/5) - South Park: The Stick of Truth for X1 BC (4/5) - Call of Duty: WWII for X1 (4/5) -Wolfenstein II for X1 - (4/5) - Dead or Alive: Dimensions for 3DS (4/5) - Marvel vs Capcom: Infinite for X1 (3/5) - Halo Wars 2 for X1/PC (4/5) - Halo Wars: DE for X1 (4/5) - Tekken 7 for X1 (4/5) - Injustice 2 for X1 (4/5) - Yakuza 5 for PS3 (3/5) - Battlefield 1 (Campaign) for X1 (3/5) - Assassin's Creed: Syndicate for X1 (4/5) - Call of Duty: Infinite Warfare for X1 (4/5) - Call of Duty: MW Remastered for X1 (4/5) - Donkey Kong Country Returns for 3DS (4/5) - Forza Horizon 3 for X1 (5/5)