ijustlikegames:) said:
Landguy said:
Not sure if they are really losing on them or not or atleast not much. I was thinking that both Sony and M$ were in the profit zone by $50 or more at the $399 price point. It doesn't say that anywhere on the net, just my opinion. I was also thinking that it may be more than that by $30-50. I think M$ just wrote off the cost of Kinect 2.0 and moved on. By just ignoring the money invested, the cost to produce the system would go down along with the actual cost of not including it. The truth is that we will never really know.
M$ clearly decided that if they didn't get mindshare and actual market share in the US this holiday, they would be so far gone that this gen would have been a total loss. So, even if they are losing $20-$50 per unit at the pint of sale, they can make that back with a XBL sub/renewal or a few games purchased. Also, M$ is really looking for a whole home ecosystem with the launch of Windows 10(which is excellent) next year, a new Windows 10 compatible phone OS and a system update next year that makes the XB1 Windows 10 compatible. It's a long view for them. THey don't mind losing the Console War, but they are more concerned about being blown out the door like what was happening.
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PS4 has sold enough where they are making profit now but X1 is not. MS was taking a loss on consoles before these drops, they have to be taking rather significant losses on them these holidays.
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I doubt that M$ is losing anything at $349. When you add in the gaems, then you see them losing some, but they are just didgital copies on most of these bundles. I am sure they are only paying $25-$30 a piece for the games to 3rd parties. Almost all of the games require gold Live to make them matter so they break even if they have that. Not much real loss.
If the common thought of practice is true, they will sell a crapload of systems to the friends and family of the buyers at some point. In the US, the ratio will be close to 1.1-1.2 to 1 (PS4to XB1)at the most at the end of the holidays if not even. Mission accomplished from M$ perspective. They will focus on keeping the US balanced or in their favor going forward. M$ and Sony (Everyone really)knows that there really is no chance for M$ to win WW. M$ isn't only after console sales. The console is just a piece of the Windows 10 puzzle.
