| Imperial said: MS has pretty much given up on the pursuit of profitability this generation which is probably why your referring to gross profitability instead of net profitability , I also think your gross profit figure is innacurate and is pretty much an estimation based on even weaker assumptions. To have a better look at the 360's performance it would be wisest to compare it to it's closest competition on the market (PS3 maybe Wii) , but considering the PS3 has sold faster since launch and will probably outsell the 360 in the year 2008 with a higher price point , smaller libary and less marketing and promotion etc it would hinder you in your pursuit to convince yourself the 360 is the ultimate format. Microsoft didn't make a penny on the XBOX , the won't likely make anything of the XBOX 360 and might aswell be in this industry for the fun of it (IMO) . :) |
"MS has pretty much given up on the pursuit of profitability this generation which is probably why your referring to gross profitability instead of net profitability , I also think your gross profit figure is innacurate and is pretty much an estimation based on even weaker assumptions."
Actually I referred to gross profit because I was estimating and I didn't want to potentially account for things like advertising, staffing etc of the whole operation. But as for assumptions they are pretty good really. Console owner royalty = ~$6.50/$7.00, 100 million software units sold in the last year so its pretty safe to assume that it will sell just as much in 2011 with twice as many consoles sold.
"To have a better look at the 360's performance it would be wisest to compare it to it's closest competition on the market (PS3 maybe Wii) , but considering the PS3 has sold faster since launch and will probably outsell the 360 in the year 2008 with a higher price point , smaller libary and less marketing and promotion etc it would hinder you in your pursuit to convince yourself the 360 is the ultimate format."
Except PS3 launched into a more mature market and the Xbox 360 had to fight to get the generation going. The Xbox 360 had a rough launch and supply was extremely constricted to top things off. Its definately not a fair comparision to make. So consider the total sales since the PS3 launched and they are almost dead even. But hey, if you want to mislead yourself - thats fine. Btw the libraries that counts are whats been released in the last year, so I would say that at this point the Xbox 360 and PS3 are about even there. If the games aren't selling, they probably aren't selling consoles - am I right? Lastly @ bolded: Absolutely not, I know that the Xbox 360 is a better format than Blu Ray - I like games more than moves/tv! Go figure that. 
"Microsoft didn't make a penny on the XBOX , the won't likely make anything of the XBOX 360 and might aswell be in this industry for the fun of it (IMO) . :)"
"Im afraid that the Xbox 360 profitibility will be fully operational when your friends arrive" Darth Sideous. Actually The Games and entertainment devices division has shown profitability, but who the hell knows exactly what proportion of the losses are actually attributed to the Xbox 360? IIRC noone has been able to determine exactly how much the Xbox 360 gains/loses Microsoft per financial year.
Tease.
