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Azzanation on 14 April 2017
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Intrinsic said:
Azzanation said:

You guessed right. I was referring to there hardware profits..

And my message clearly doesnt say MS is better off not selling more than PS.. omg haha where do your conclusions come from?

My main message is clear. Hardware sales DOES NOT tell the full story of a products success. 

In other words Scorpio doesn't have to outsell PS4 to be successful and profitable.

Then you are having the wrong conversation with everyone.

I do not think a SINGLE person has said that XB1 (i am using the entire XB1 family here [XB1s+Scorpio] has to outsell PS4 to be successful or that anyone has even suggested that it will somehow be able to.

What people have said is that it could be doing better if they did a couple of things. In other words, they could even be more profitable if they did certain things.

This is where i will agree, and in saying that, you can say the exact same thing to any company and its products, there is always a better way in doing things, nothing is perfect. I think Scorpio will do Xbox well, it wont outsell the PS4 or Pro however it will be a successful console for MS. (My opinion)

Normchacho said:
Azzanation said:

Do you understand the difference between a Buisness Market and a Sport Competition?

Sure its a no brainer that all companies want to sell the most products, i also want to be the richest guy in the world, is my life over because i am not the richest man in the world, do i just give up on making money because someone else is making more money than me? Does Xbox have to outsell the PS4 to be a profitable brand? No. It doesnt. MS can give Xbox away for $1 for many years just to claim the title of best selling console in the world if they really wanted to win a sales race. They dont and i am glad they dont either. Sales mean nothing if your not making money on it.

Also you do know for the first few years of a new console being sold they are losing money on it. I believe only now Sony are making profit on the PS4, not 2 or 3 years ago. If every PS4 was sold at a loss *Lets say -$1* and than you have a console that goes out to sell 30m in its first 2 years.. what does that tell you? The real profit is in the software and the subscribers. We all know Xbox has a healthy subsciber rate and there own software is normally up there with the others, yet they didnt sell as many consoles as PS4 which is where the gaming industry normally loses money. 

I am not defending Xbox, i couldnt care less how much they sell. Sure it would be nice however it doesnt tell the true story. Iv been playing World Of Warcraft for more than 12 years. I am a subsciber since 2005. Is WoW the best selling game of all time? No, is WoW one of the most profitable games in history? Most likely yes. Actual physical copies/Hardware is all a bonus and slightly helps, its not a make or break competition. Theres no Gold Trophy at the end of a season on who wins the sales race. Its not a sport like many of you try to believe. Its a buisness. Like Cars. I own a Jaguar, its definifty not the best selling car in the world. Does it make it not a good car? Far from it.

Alright, VGC really needs to do a series of articles on business economics for video game nerds because I hear crap like this and "Nintendo could lose money for the next ** years and still be fine!" and it's all nonsense.

The moment shareholders realized that it would be nearly impossible to make up the lost revenue from selling the Xbox One at a $298.99 loss the stock price would take a huge hit, the board of directors would call for an immediate end to the practice and would lose all faith in the division, and they'd probably want the person who came up with the idea removed.

The value of a publicly traded business isn't like a personal checking account. Their value relies on shareholder confidence, so doing stupid things can have huge financial implications for a company.

Its always good to keep the share holders happy. However look at it like this. There are many ways to make a profit. MS could give Xbox away for free however put them as a 5 year plan though Live Subscibtions etc. They could also have Bill Gates as a major share holder who probably doesnt care as much as other share holders and probably invests for the hell of it (Assumption, dont take that too serious). Money isnt an issue at MS. They have it, plenty of it. They also want to continue to make more money hence why i said i am glad they dont care for the sales figures because if they did want to win a sales race they can afford to lose on products to gain those sales and still bring out another console.

This is why they choose to have less 1st party studios and get 3rd party studios to make there games, it clearly works out cheaper this way for them. They also are making a Scorpio and i can bet there is a Xbox 2 (Next Gen System) on its way in the next few years. If they arent making money on Xbox than they wouldnt be going though all this.

In the end i agree with the Share holder view. Iv been saying share holders is a very important aspect for years. However that doesnt mean sales mean everything, aslong as profits are turned, share holders are happy and this is why we continue to have Xbox as a console manufacture. Because Xbox and Live are bringing in the money.