| superryo said: So MS sold so much better than the original X360 and it's a failure? Where did the loss of billions a year come from? I thought they are selling the One at a profit? Seems like a lot of "journalists" are using the PIDOOMA (pulled it directly out of my ass) theory. As for not being the most powerful and not selling as much as the competitors mean you should close shop then Apple should close as well since doesn't Android (mostly Samsung) owns 80% of the market and in some cases have much more powerful devices? How come none of the "journalists" are calling Apple to close shop and selling to Google? |
The Xbox 360, as well as the Xbox and Sony's consoles have almost always sold at a loss, and along with Microsoft pumping millions of dollars into developing extra features and special deals with other companies on Xbox Live it's not surprising that the gaming division of Microsoft is hemorrhaging money. The profit margins are probably better with XB1 sales, but I'm sure they are still losing money with each sale. The "razorblade model" of selling consoles is part of the reason for this article I'm sure...the companies are hoping they can make money back on the profits of their software sales.
I do agree, however, that it is much too early to call the console a failure. It is selling well and will probably continue to do so. The article does point that out anyway, but is saying that the console business is potentially a losing business.
And your Apple argument is a terrible comparison for one main reason: Apple's business is highly profitable. Apple still has a respectable portion of the mobile market and even if it is losing ground to Android it continues to make a lot of money. If Apple starts losing money on their mobile endeavors and it is a losing battle, then perhaps selling would be a strategy. I don't think Apple has too much to worry about just yet.
