You got to hand it to Microsoft

[NJ5]

Lord N said:

 

I think it's pretty clear here that I'm talking about MS's performance and profits(or lack thereof) in the video game market. Not their performance and profits in every other market that they are involved in.

MS cash reserves and market dominance with OS and office tools doesn't change the fact that they're still being pummeled at every turn by the Wii, doesn't change the fact their best case scenario for this generation is to end up a distant, unprofitable second, doesn't change the fact that the 360 has yet to see strong sales in all regions outside of the holiday season, and doesn't change the fact that the 360 has yet to turn a consistent profit.

Bringing up MS's financials that it's incurred due to its other divisions is grasping at straws, and it really means nothing considering the above. For all of that money, MS is still in the same position that it was in last generation. It's just that Nintendo is beating the hell out of them instead of Sony.

 

 

Well, even in the gaming division the losses aren't as big as last generation's (and they're decreasing due to the consistent profits they've been pulling lately). If it wasn't for the RROD warranty costs the situation would be much better, and that was obviously not part of their strategy, just an execution error. Perhaps my bar is set pretty low due to Sony being so reckless, but you're right that they're not doing nearly as well as Nintendo in terms of profits.

I think MS wanted to go head-to-head against Sony to control the living room computer, so even though they're getting pummeled by the Wii in terms of gaming userbase and profits, a part of their strategy is still working.

"MS is still in the same position that it was in last generation."

The 360 is significantly more successful than the Xbox.