GreyianStorm said:
spaceguy said:
VGKing said:
B-B-But Microsoft is rich! They can sell a $500 XboxNext for $250 and kill Sony and the PS4! They have the money!!! |
Actually they are and can if they wanted. So not sure what this post is suppost to prove.
|
Actually, shareholders probably wouldn't back something like that. Every million units sold would cost the company $250 million. Imagine if they were selling 10 million units a year, that's $2.5 billion per year. Even if they knocked Sony out of the gaming business, they wouldn't really be able to raise the price of the system (it would alienate potential buyers) and they'd probably be looking at losses throughout the generation of $10 billion, if not more (R&D and huge annual losses with no end in sight really). While the company as a whole could certainly afford it (as in, they'd still make a huge annual profit overall), the shareholders would not support such a move, seeing as there isn't really a big profit to be made afterwards.
|
Who said they would? I just said they could. The point being the guy above is being a smarta--. Then you jump in to prove it's a stupid business idea to lose money by selling lower then you should. Thanks for the tip bro.
