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Machiavellian on 02 June 2014
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Arkaign said:
Machiavellian said:
Arkaign said:
EspadaGrim said:
sales2099 said:
Good to know my favourite gaming corporation has a shit ton of money to throw around :)


As long as they use that money for more games I'm Happy.


At the same time, it's doubtful that MS is going to continue to put infinite emphasis on the Xbox division considering the overall losses and severely underperforming XB1. 2014 has been very costly for them at every turn.

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.

Why would developing and marking the X1 be more expensive.  If anything MS is closure to breaking even or making a profit on the X1 unlike the 360 which has been shown from a number of sites.  

The thing about over production is that you just slow down production and sell out your inventory.

Dropping Kinect does not mean MS is taking a loss, it means they need to do something to compete with their strongest competitior which is Sony and the PS4.  

You have absolutly no clue what MS invested in Titanfall and thinking its 200 to 300 million for a new IP make all of your assumptions sound really out there.

Basically you are cooking your own brew to support your opinion but you have not shown anything that suggest that MS is running at a loss.  You are even making up your own numbers to support your opinion which is even worst.