Microsofts profit by division. Is the XBOX really worth it to Microsoft?

[Mr Puggsly]

Xoj said:

LuStaysTru said:

Synergism for me describes Sony's plan more because the PS3 gave a huge boost to Blu-Ray. In my opinion Blu-Ray would have beaten HD-DVD anyway but that wasn't a risk Sony wanted to take. I'm not sure how synergistic Microsoft is. Their plan seems to be more just to throw Sonys synergy off. That's why they supported HD-DVD, if High-Def movie playback was really that important to their console in their eyes then the XBOX would be supporting Blu-Ray playback now.

I'm pretty sure most people would agree that the E & D division is pretty indicative of the Xbox's success. If you were to extend this graph back to 2001 then June 2007 is a pretty reasonable date to assume first time profitability for the XBOX brand.

Also it's been a pretty rocky road since then according to the graph. With a potential price cut looming and heavy marketing for the Natal who knows what the future holds for their bottom line.. When Microsoft releases a new console they will go the Nintendo route in my opinion and try to be profitable out the gate by making a less powerful console and like Nintendo it could be what makes or breaks them in the end.

Admittedly I'm no expert but this is what I've observed.

it if sells, it will fail to steal sony thunder, nintendo knew this and they went into a different route,

 

sony it's about selling a full entertaiment system,

they saw this and their focus was fighting the japanese giant, the thing is sony not only recovered they are stronger first party than ever, so their only choice it's bundles and heavy price reductions, it's already much cheaper so it have to be a big one.

but their ultimate goal, they failed, PS brand remained strong, and will see PS4, and in the end it's smartphones that ended up taking the lead where they already have nothing of marketshare.

Sony has hardly recovered. They are still in last place by millions and they've been forced to cut their price 50% since launch just so people will buy their console. What other console has dropped 50% and removed features? Also, Lets not forget the PS3 will never be profitable.

MS did would it needed to do. The Xbox brand grew significantly, 360 will definitely be profitable if it hasn't been already, and it has dominated the PS3 in both hardware and overall software sales. Who predicted that would happen?

When the next gen rolls around Sony will still stuggle because MS is now a major competitor.