Ka-pi96 said:
bowserthedog said:
Ka-pi96 said:
Yeah Nintendo probably won't lose any money on a 1st party title, but the risk is still there. Relying alot on 3rd party minimises that risk, it is the 3rd party companies that have to take the risk not Microsoft themselves.
Also... Xbox is actually quite profitable for Microsoft, so it being a loss leader is certainly not a fact. Sure overall it has made a loss, almost entirely because of the original Xbox and its associated costs. But the 360 has been consistently making a profit for Microsoft.
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The articles i've read on the subject suggest that Microsoft lost billion on the xbox 360.
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The original Xbox was nothing but loss. The 360 started out with quite a big loss but then has been making steady profit since 2008. Add 2013 and 2014 into that and the 360 has more than earned back any losses it accrued.
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The thing that must also be understood is that this was a generation where xbox was competitive versus sony. They came out first, had a bunch of features sony needed to catch up on and were the leading platform in sales until the late stages. Despite this they had to lose billions for years to just break even by the very end. With Microsoft's strategy they basically have to hit a homerun in order to break even. When Nintendo hits a home run their streets are paved with gold and they basically crap money bags. When Nintendo strikes out they still turn a profit. From a business standpoint Nintendo seems to be correct in having the strategy they have since they are a small company relative to Microsoft and don't have other business elements propping them up if they would fail in gaming.
