Machiavellian said:
What losses??? Did I miss something becuase I do not remember MS reporting any losses for the console. Do you have any links or is this just an opinion you are reporting as fact. |
Look at this :
http://www.neowin.net/news/report-microsofts-xbox-division-has-lost-nearly-3-billion-in-10-years
Now look at the 05/06/07 timeframe, that's due to ramping up/producing X360. Developing/marketing XB1 is even more expensive than the 360 days, so we're probably talking on the order of 3B in additional expenses related to XB1 in 2013/2014. XB1's only chance to become profitable would be in the order of 50M+ sold through, with heavy XBLG/attach rate.
They already had a costly overproduction of XB1s based on overinflated expectations (Nov/Dec gave them an unrealistic sales expectation, so they produced at max level, flooding the channel, then had to ramp down, this is VERY expensive as a mistake when you're using outside assembly as they do).
Add in dropping Kinect, the Titanfall marketing + moneyhat exclusivity (probably 200-300M total), buying TF copies for the bundles (80M+ easily even at $25/pop), etc.
At this rate they'll be down 7.5+ billion in total for the XB project from inception, and 4B+ down for XBO by Dec 31st, 2014.