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man-bear-pig said:
MontanaHatchet said:
man-bear-pig said:
Red4ADevil said:
But in the end, Nintendo managed to make profit; unlike Microsoft, they lost 4 billion with the xbox. Xbox production was ceased after just four years on the market.

holy shitballs!!!!!!!!!!!!! how could they lose 4 billion :O

Development of the Xbox costs tons of money. The system itself was sold at a pretty big loss (consider the level of technology it had at the time combined with its media features). This might have been fine if Microsoft had been able to sell large amounts of software to offset their losses on the hardware. However, they only had one big series at the time (Halo), and that didn't even manage to sell as well (at the time) as Sony's Gran Turismo series. Meanwhile, Microsoft paid $375 million dollars for Rare, who would go on to make some of the worst and most embarrassing games of the generation.

Essentially, their overall investments have been FAR superior with the Xbox 360.

wow, thanks for that. ive never even heard of rare :P are they making money nowadays?

Which? Rare or Microsoft Gaming Division? (which is Entertainment and Devices division) Rare are probably not even close to being profitable for Microsoft, that said they didn't buy them for profit, they needed a backbone to their first party line up along with Turn 10, Bungie and Lionhead. They've probably done very well lately though, Kinect Sports franchise is probably over 5 million shipped now, and they worked on Avatars. Not many people realise but they have a say/help with the Xbox OS as well.

EDD made 1.3B profit last year, and 3B profit since they started profiting (which was when Mattrick came in)