| CrazzyMan said: they will probably do a price cut. if this won`t help. probably will stop producing x360, like sega dit with dreamcast. for 6 years m$ gaming devision is not making profit, only losses around 5-6 billions $. |
I don't think you really understand Microsoft's strategy. They want to position the Xbox as the control center to your living room -- they have expected to take a significant hit for this to happen, but they're looking at possibilities down the road. Digital delivery is where it's at, and Microsoft is using Xbox live Marketplace as the tip of the spear for this movement. They see how Apple revolutionized the music industry with iTunes and they're hoping to be the leader for that technology involving games, movies and television shows.
This strategy seems to be working, too. The Marketplace is growing tremendously fast and they're having a lot of success with it.
Besides that business strategy, Microsoft was expecting this to be a three console race to tear away marketshare from Sony. They're already doing that and this is only the second console. They'll see their investment through to the end, and they'll likely reap the rewards from it. I think Xbox 360 will still see losses through the end of this console's life, but probably not at the level people are expecting. I think a 1-2 billion loss in total when the machine is finished with its lifespan is likely. And I think their total loss for this generation will actually be slightly less than Sony's. By the time the 720 or whatever it will be called comes out, Microsoft will likely be well in the black again.
