US Army wanted Xbox 360, MS Refused

[gurglesletch]

stof said:

gurglesletch said:

Obviously your point is flawed because Sony hasn't made a profit off of the PS3 hardware in NA ever but they still sold to the air force for a loss.

If I hadn't said any of the bolded parts, I'd agree with you.

Halfway into the year they had only sold 2.6 million xboxs. They could have easily ramped up production for the army while reducing costs due to increased production.

So you're saying the smarter business decision would have been to spend even more money on producing loss selling consoles to sell to a client that would never give you software returns?  I think we can all agree that Microsoft's strategy was to use their one year head start to establish a themselves a large userbase to combat the PS3 with. How exactly would selling a large portion of their consoles to the military instead of gamers have done that?

And by that point hadn't they just managed to reach demand? I remember there being a shortage issue during the first year. 

Worked for Sony.