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nightsurge on 18 March 2009
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Rpruett said:
Darc Requiem said:
Soul_tech10 said:
Microsoft is in a worst position than sony, just add up the figures above and you will, see why.
Microsof is the only one with a negative total, -6mil.

Sony's game division SCE is losing money and the company is losing money as a whole. That puts Sony in the worst position. Microsoft's game divison is still in the red overall but has been posting profits over the last year. More importantly, Microsoft isn't in debt. Sony is. The strong Yen is putting an additional strain on Sony where as it's making things easier for Microsoft.

 

 

Microsoft's game division is still far in the red overall.  They didn't start posting profits till the 3rd year the 360 was on the market.  Like I said, we will see if Sony can post profits with it's 3rd year on the market. (I'm guessing they can).   Also the Microsoft numbers hide the costs of the RROD issue (IMHO), which is an ongoing cost that is going to hurt their bottom line.

 

The 360 only has a stronger umbrella over their head but it's still in the middle of a downpour.    As it boils down to the systems?  The 360 is in a worse position (Unless  Sony takes a third straight year of loss).

You are wrong.  And yes, Sony will take a third straight year of loss.  ESPECIALLY if they do another price cut.

Oh and the RRoD cost was not "hidden".  It was factored into those charts, and is the reason why you see a billion+ loss spanning 2006-2007 added in (added to the other losses).  Sure it is ongoing still, but that's why they invested a $1billion up front.  The initial cost of repairs and such were not that high, and I'm betting they may not have even used up all that $1 billion yet.

Some rough calculations:
$20 per 360 shipping to/from repair center
$50 per 360 for repair/parts
------------------------------------
x10,000,000 (roughly 30% failure due to RRoD?)

= $700,000,000 or 700 million.  I have a feeling the repair cost (which usually is just new heatsinks and MAYBE a new motherboard) on average is around $50 with some being higher and some lower.