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AlexJones said:
endimion said:

so wait with that line of thinking iPhone has been the most massive failure in tech devices history with every new device ever since Android entered the market and literally dwarfed it 8 to 1???

market share is meaningless apple has been proving it for close to a decade now that you can easily make monstrous amounts of money while being second by huge margin on almost every single segment of the industry. Software monetization is where it is at, so no matter the market share if MS sells more XBO so far than 360 and keep selling as much software and services than last Gen they are doing better than last Gen period no matter how the market shares fluctuate. So no so far it is still a success even for MS, maybe not the one they expected but a success never the less

And what is the iPhone's profit margin? Apple uses low quality parts to improve their bottom line. Last I checked, their phones were selling at $600 when they cost around $150 to make. 

As for your remarks about software monetization, Microsoft lost that too. Most of the people subscribed to Xbox LIVE Gold are now on PS+. I'm surprised that no one mentions this, but multiplayer games on the Xbone feel dead compared to PS4 multiplayer games. It's hard to find a match on titanfall or CoD: AW. Games also sell much better on the PlayStation this gen in every single country.

Microsoft's best bet this generation is not to try to make a profit. Their recent firesales show us that they understand this. Microsoft does not expect to make a profit this generation. Their only chance is to prevent as many 360 owners from switching over to the PS4 so that they have a chance with the next Xbox, and the only way they can do that is through deals. I'm hoping that they remove their multiplayer paywall, because paying to play online is some form of bullcrap, but I won't get my hopes up. Microsoft won't make a profit this generation.

XO multiplayer games feel dead next to PS4? What does that even mean? That makes no sense. CoD:AW just released last november and sold 4M until date. It is absolutely impossible for a game that sold so much to suddenly become inactive. You can find a match easily on both games. I simply can't even imagine who told you that nonsense.

I won't even discuss the iPhone thing. You DO know there are more things other than raw hardware right? Besides, Apple does both hardware AND software, that surely increases the R+D costs, and also they take the most out of their components, even if the specs are inferior to direct competence they end up achieving the same performance. That's some top-quality engineering right there.  The price tag is high because that's Apple policies but even then, they're not getting a $450 profit.

About profit or not, only MS can tell. Remember, the console itself may be sold at a loss or whatever but they make up for that with the games :)