Forbes: Time To End All This Doom And Gloom Over Sony And The PlayStation

[Scoobes]

slowmo said:

Scoobes said:

slowmo said:

VGKing said:

osed125 said:

Not saying Sony is doomed, but the article only mentioned that the PS3 sold almost the same as the 360 (in a shorter time), he doesn't take into consideration how much money Sony lost in the first couple of years, doesn't matter if the PS3 will outsell the 360.

No one ever mentions the $1Billion+ Microsoft lost on the RROD epidemic either. 
The Xbox 360 isn't as profitable as many believe

 

Xbox Live alone made 1 billion in a year profit this gen, so yes it is.  Kinect as also been a huge money spinner too

That's revenue, not profit. The ED division made only $32,000,000 profit last year based on $1,490,000,000 of revenue.

That equated to around 2% of Microsofts profit even though it brough in 10% of its overall revenue. So the division is really nowhere near making back the costs from earlier in the gen anymore then Sony

ED division includes a lot of heavy loss leading products which mask the 360 profits.  That figure was indeed revenue but given it was 2 years ago its not unfeasible that they have made over a billion dollars profit in Xbox Live in total at least.  Hardware has been profitable for Microsoft since 2010 also so it has been making profit even if the division hasnt been showing its full worth.  The 360 is already profitable, the question now is how much of last gens losses it will recoup.

What other loss products though? I only know of Zune and that was discontinued a few years ago. Other then that, surely Windows Mobile and Phone 7 haven't been that bad? I assume they get money from Phone manufacturers and all the PC/360 peripherals are pure profit.

I also doubt X-box Live has brought in that much profit. The running costs for these networks is massive. I think the last loss for Sony (the goroup that Playstation is in) was blamed on the huge costs of running PSN. Even with subscriptions it'd be difficult to profit by $1 billion. It's also worth remembering that some R&D costs for next gen may also be factored in.

Either way, according to the article I posted above, Microsoft still have to recoup this gens losses, let alone last gen.