Microsoft: A Massive failure!

[Mr Puggsly]

Joelcool7 said:

Well Microsoft did pay more then 200-mill for Rare. So 400-mill for a big advertising company is plausable if not probable. It did have support from major publishers but when Microsoft's X-Box team themselves decide to go internal theirs got to be a problem. Also with EAGames leaving their was likely major problems.

I doubt that the company was able to make back profit. Look at Rare for example it has failed to sell big amounts of software for any of its titles yet Microsoft has not dissolved them. You know Microsoft must have been loosing something to shut them down.

Plus my estimates aren't really mine they are estimates about how much Microsoft purchased them for 200-400 mill (Not mine) and I simply estimated over eight years it probubly would have cost them another 100-mill in operating costs.

In the end I can't see Microsoft shutting them down if they were making money and were in the black. Anyways the closure of any purchased entity is pretty much a failure, especially if its clientel was leaving in droves and their own company leaves them.

Uhh... you don't know Rare's real value being apart of MS. They had a few titles with modest and respectable sales. I assume they'll have success with the Kinect. They also created the Avatars. The Avatar characters have basically become the mascots of Xbox 360 and I'm sure they've generated a ton of revenue with those items people purchase.  Ultimately, Rare may have paid for themselves already. There is also a lot of potential with the IPs Rare owned.

We don't know how much MS actually paid for Massive. You just assume the highest guess. You don't know how much it cost to operate. We don't know how much they generated throughout the years. We know absolutely nothing. Perhaps MS got rid of it because it was a sinking ship with no potential of growth.