By using this site, you agree to our Privacy Policy and our Terms of Use. Close
SpaceJase on 04 May 2007
Edit Thread
rocketpig said:
Last I read, they're making a small profit on hardware but losing it back on marketing, distribution, etc.

With the large install base of the 360 already in place and the fact that they're making a small profit (which will be larger in September) on the hardware, Halo 3 and GTA IV put them in a nice position this fall.

They will rake in huge profits on game sales while hopefully breaking even or losing a small amount on overall hardware sales. Once they get through this holiday and hopefully have switched to 65nm process, the profits could turn into a windfall for them.

It might not happen, but they're not in that bad of shape as things stand now.

  1. If their hardware 'profit' is eaten up by the distribution and marketing costs then it doesn't really count as profit does it? Not in the eyes of shareholders that's for sure.
  2. 9.6M is not that large of a user base.
  3. Huge profits on game sales? They will make money on Halo 3 but one swallow does not make a summer - see Nintendo for 'huge profits on game sales'.
  4. A windfall? That's some level of optimism. They still have to keep the PS3 at bay so don't hold your breath for MS making any significant profit on harware for a long time to come.