Will Microsoft release a new console for Next Gen? Interesting Read,,,

[Lord N]

Squilliam said:

ookaze said:

Squilliam said:

Lets see: The zune isn't released worldwide because I believe Balmer said that it would lose them more money to do so. Media Center? I don't really see that as being an area of high revenue, Windows mobile was barely breaking even before the iPhone and massive investment to compete. They made all of 5M before they joined it with E+D.

Xbox 360 revenue = 5.6B

Cost of revenue for Xbox 360 and others = 4.3B

R+D = 1.8B

Believe what you want, but at least back up your statements with some evidence.

 

 

LOL, you people are always full of it.

Your big reference Steve Ballmer said exactly the contrary : http://www.businessweek.com/technology/content/oct2006/tc20061011_940241.htm

There, I'll extract it for you :

BW : How much money will you lose per Zune?

Steve Ballmer : None.

I'll take that from the horse's mouth instead of what you want to "believe".

And that was in 2006, I'm pretty sure that with cost reductions, they're profitable in 2009 on Zune, or they couldn't be profitable with XBox either.

You can make all the speculation you want, they hid Xbox in another division to mask the heavy losses they were having with it, and it's still the case. MS is a master at marketing and financial schemes, that's for sure.

But don't worry, they'll release a console Next Gen, they have to, just as they have to make Windows Mobile or Zune, or even promise people a search engine that will destroy Google (that was years ago).

But they fail miserably in everything, every segment where they have to compete. They just don't know how to compete.

It wouldn't be a problem if it wasn't that they don't care one bit for their customers.

In most of their business, the customer is not YOU BTW. It's a common misconception. For example, with XBox, the customers are the developers, not the console's final user. They don't care about them, thus why the console has the worst quality ever due to a design flaw that they won't correct, just workaround. That's why they asked developers what they wanted, not gamers. That's why they close even 1st party game studios of which they don't even have a lot, that's why they don't hesitate to make credulous people pay to play online, while the same service is free on PCs, ...

I mean it's obvious unless one bury its head in the sand.

If it plays out like always with MS products users, there will be some big disappointment in the end, when they finally realise (if ever) that MS doesn't care about them.

Since you ignored what I stated I have no reason to spend any effort on this because the chances of it changing your opinion are 0% and the chances of me wasting my time in trying are 100%.

Unless you can prove that some other cost, whether its from the R+D account or somewhere else exceeds the Xbox 360 revenue then you cannot prove that the Xbox 360 is unprofitable. What you just posted is fluff and speculation and you're avoiding the real issues. 5.6B Revenue Xbox 360, 4.3B Cost of revenue which includes things like keyboards, mice, zunes and Xbox 360s and 1.8B R+D. So you're going to prove to me that the majority of the R+D is Xbox 360 related in a division which also houses Natal, Surface, Windows mobile and Zune? Are you going to prove to me that they are spending billions every year in advertising?

 

MSFT spends a lot more every year on advertising than either Sony or Nintendo, and they also spend more money securing third-party support. They also make less money on their first-party titles.

Anyway, trying to assign respective profits and losses to each product and service within MSFT's E&D division is flawed from the start, and the mere fact that they have it in the E&D division is awfully suspicious when it comes to finances.