The Xbox 360 has overtaken the PS3 in Europe!!

[Lord N]

Shadowblind said:

Lord N said:

Shadowblind said:

Staude said:

Shadowblind said:

Staude said:
^you can never know for sure. The point is that sony has a record for actually making their money back and microsoft doesn't However, that is completely besides the point if you read my original post which was only geared towards microsoft

 

 http://www.xbox360fanboy.com/2008/04/25/microsofts-xbox-division-turns-a-profit-again/

Correct me if I'm wrong--and I well might be-- but this shows Microsoft is turning a profit on the 360s instead of losing money per console sold....I think, right? Hm.

 

No. Notice the name of the division.

 

Microsoft's Entertainment and Devices Division.

 

Like i said, this division includes zune and other profitable products, possibly to cover up for loss on xbox hardware.

 

 Zune? Profitable? 

Wow. I want some of what your smoking. Without the Sony additives. Fact is (or seems) 360 is making Microsoft a profit, no matter how much you want to spin the fact or argue semantics. Doesn't mean they are out of the red because of the Xbox original, but it means that if they stay the course, they are heading to the black.

 

Microsoft's E&D division also includes the Zune, Zune marketplace, games for windows, keyboards, mice, game controllers, and other peripherals as well as mobile software. Considering their last few quarterly financial reports, it doesn't look to me like the 360 is really making them any money.

 

 And why is that?

 

They've had a profit of $89 million, $114 million(give or take, I'm not quite clear), and a $200 million loss. That wouldn't be the case if the 360 were profitable.

You also have to take into account the price cuts, especially in Europe, where the 360 is just a step away from being cheaper than the PS2. Even if you want to look at hardware only, the arcade is probably being sold at a loss. Beyond that, you have to look at all of the money MS spends on advertising(which is far more than Nintendo and Sony), all of the money that it spends trying to secure third-party support, and the fact that besides Halo, its first party titles don't do so hot.

In order for Microsoft to turn a consistent profit, they would need the market share or the PS1/PS2, which they are nowhere near achieving.