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tak13 on 07 December 2016
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Intrinsic said:
tak13 said:

I know it and i'm so satisfied by that! Not just selling more than PS3 but also profiting a lot unlike PS3 which was a financial disaster... That's awesome!

As regards MS, xbox division it's the least significant division of MS...

They make insane amount of money every quarter! For example they're going to drown from the profits of the expensive/overpriced well-selling surface book.

Of course, it would be better to make profit on hardware, losses are not a good thing and disgruntle  investors but MS isn't relying on xbox... Also, I don't like the fact that they have burnt so many money on xbox division but they they can easily afford to do that, hence they care more for the installbase size/commercial success, and profiting on software/online subscription by extend.

They can sell it for 150 if they want and they won't get in trouble, but of course that wouldn't be wise move for obvious reasons...

If xbox had become MS biggest division, and they would rely on it, then they would be under pressure to make profit on hardware...

 

@normachacho this reply is also for you...

P.S

I'm not an xbox fan, so some people may not like to argue with a non xbox fan who's defending it... eh?

This really isn't how business works. MS doesn't need the Xbox to survive works in both wsys. If they dont care enough about its sucess then they could also stop caring to invest money into it. Cause in business that money spent on xbox vould have been better spent in some more profitable venture. 

And no, they can't sell it for $150 if they want and not get into trouble. If each XB1 cost around $260 to make and they bite $100 on each unit and sell 10M of those at that price in a year. then they have lost $1BL just like that. And this is just on hardware and not talking about all the money spent on marketing and software development. 

But you know what? Maybe you are right, maybe the Xbox is the least significant division in MS. Could explain why they are closing studios and not trying to match so y on first party output. Which makes me wonder, what kinda person spends their money on a platform that even its manufacturer doesn't take seriously?

Not again... Read the bolded!  I cite what is right from business perspective. ;)

By not getting in  trouble, I mean not  getting in the danger of bankruptcy Intrinsic.

 

They would lose 1b, so what? They lost almost 4b with xbox 360... I metion that such a price cut would be irrational though, don't you see it? 

If they can afford to lose so many money, why not if it's about to sell more units and have a commercial success, more brand awareness? I wish my favorite company would be able of doing this, wii u would have sold significantly more units.

I think that they are off-setting sowewhat  the loss on hardware by  earning some money from software sales and online subscriptions!

 

As I said, perhaps they care only for its commercial success and not the financial success... MS is a company  which  is making  loads of money from other divisions and are enough, are they in need to make more by sell the xbox hardware on profit?

Why not having a 50m selling product to brag about ?

P.S So Sony should have left PS3 at 600$. Also, why sony invested  so much in PS4 ( rightly ) after PS3 fiancial disaster and not to a more profitable venture?