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Azzanation said:
DonFerrari said:

It lost money mostly due to RROD on X360 and they decided to go different revenue stream because they can`t compete on console against Sony.

Xbox did compete with PS head on. They did it last gen and beat Sony at their own game, so they can do it. However the cost of doing it doesn't fit well with a mega corp like MS. 

RROD lost $1.5b for the 360, the total loss was $3b so RROD wasn't the main issue. The PS3 lost $5b and that's without an RROD issue and paid subs to help balance it out back than. The collateral damage isn't worth it so that's why they changed Xbox the following gen with the XB1.

[...]

They tried a very good move, but RROD made them waste XB's head start. Sony messed up too with costs and price and Ninty won with Wii, beating both easily.

Those numbers show RROD wasn't the only issue, at least financially, but unless there were just another issue, RROD still had to be the main one, as it totalled 50% of the losses alone, leaving 50% to be divided amongst all the other issues. If you mean it wasn't the main one for damage different from the direct financial one, that's possible, but I remember RROD problem was particularly serious, right at the beginning, so if it was solved later, with totally redesigned mobos and cooler chips, it surely was the main culprit for ruining XB360 head start. Sure later in the lifecycle RROD became just a bad image problem from the past and other issues could have become bigger, but in the first years RROD was really the most horrible problem, scratched discs for example was much easier and less expensive to solve (slim optical readers with stiff enough mechanics existed since the first portable CD player was produced).



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