| nitekrawler1285 said: I ask this because of the seeming 180s that MS have been making on things it once saw as integral as of recent. I'm sure everyone remembers the DRM being integral before being dropped before the console launched. Recently i'm sure many are aware of the Kinectless SKU incoming. Their defense for bundling it was that it was integral to the platform that all developers had one. That is no longer the case. With this price cut it's easy to imagine MS losing more money on the console. Why do I say more money? Gregg Moskowitz of Cowen & Company asked Microsoft management to clarify why Xbox platform revenue grew $1.2 billion year-over-year in the second quarter, but at the same time related cost-of-goods-sold rose $1.6 billion. Amy Hood, Microsoft's Chief Financial Officer, said that Microsoft is still in "launch mode" for the Xbox One and will continue to expand markets over the course of the year, implying the company could likely see costs exceed revenue in the near term.(http://www.fool.com/investing/general/2014/03/05/electronic-arts-titanfall-is-a-big-deal.aspx) Even if the component cost for Kinect is less than the 100 it is very likely they will have to change their production contract which is very expensive. Not to mention money losing money from stocking already produced stock that has yet to be sent for sale. If pricecuts and hyped shooters fail like TitanFall failed I'm not exactly sure how much longer the Xbox division will be integral to Microsoft moving forward. For anyone whom would like to discuss me referring to TF as a failure I would provide this link: http://www.gamespot.com/articles/microsoft-titanfall-is-a-game-changer-that-will-help-sell-xbox-ones/1100-6418170/ to show the expectations on the title from MS. Anyone else think we will see a 180 on the division being integral to MS long term vision? It most certainly wouldn't be their first. If you do feel that way I'm particularly interested in how much in losses you think they will need to incur or a time frame. |
you did not get the article you are quoting.
Imagine not having GamePass on your console...
