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Forums - Microsoft - Pachter: Xbox division on fire, Xbox Live is wildly profitable

Seece on 28 May 2010
RolStoppable said:
If the number of paying subscribers is correct, then the 360 is only making profits right now because Microsoft charges for online play. At least that's what I get out of this.

There are a lot of variables

like how much they make/lose on Zune and the other services in that division, the natal R&D, although I can't imagine that's costing much atm, doesn't that kick in when they start producing the units ...



 

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Krusnik on 28 May 2010
RolStoppable said:
If the number of paying subscribers is correct, then the 360 is only making profits right now because Microsoft charges for online play. At least that's what I get out of this.


That doesn't make any sense, so what r u saying they take the piss on every game that releases?

 



Squilliam on 28 May 2010
Seece said:

There are a lot of variables

like how much they make/lose on Zune and the other services in that division, the natal R&D, although I can't imagine that's costing much atm, doesn't that kick in when they start producing the units ...

R+D Is actually quite a significant expense. Remember its development for unnamed projects which may never see the light of day, Natal, Windows mobile 7, Xbox 360 development for the back end software, Xbox Next development, Xbox 360 games etc. I forgot how much it was that I estimated it at but it was over $1B per year.



Tease.

richardhutnik on 28 May 2010

Pachter speak = Microsoft is in trouble financially.


Sheesh, does this guy even know hat "cloud" computing is?  XBox Live is NOT cloud computing.  OnLive is cloud comuting.  And speaking of Live, Pachter said Microsoft had to and WOULD raise the cost of the service.  Why?  Well, I guess Microsoft had to, plus they could get a way with it.  Of course, he was focused on Modern Warfare being all that and critical to getting people to pay more.


STOP posting what Michael Pachter has to say.  It is so wrong, it is embarrassing.



DarkisWR on 28 May 2010

He makes good arguments but remeber...this was the same guy that said ''we didnt need Live'' oh how he ate those words.

I'm pretty sure 23million is correct..mostly...im sure its like it is with WoW..

Those 23million are not full year subscribers. But having that many just shows how popular live is..



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Mr Puggsly on 28 May 2010

23 million frankly seems impossible to me. Even half that would be an amazing number.

But I do hope 23 million is accurate. It would mean one HD console was financially worth while this gen.



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Seece on 28 May 2010
Mr Puggsly said:
23 million frankly seems impossible to me. Even half that would be an amazing number.

But I do hope 23 million is accurate. It would mean one HD console was financially worth while this gen.

Why does it seem impossible? (when in fact it's just a little over 50% of the 360 userbase ...)



 

catofellow on 28 May 2010
Grimes said:

Not all analysts support Microsoft's push. Entertainment and devices is only the fourth biggest of Microsoft's five operating units, behind its Windows, Office and server units.

 

What is the 5th?



Lifetime Sales Prediction - 6/29/2013
Wii U - 38 million
XBOX One - 88 million
Playstation 4 - 145 million

Mr Puggsly on 28 May 2010
Seece said:
Mr Puggsly said:
23 million frankly seems impossible to me. Even half that would be an amazing number.

But I do hope 23 million is accurate. It would mean one HD console was financially worth while this gen.

Why does it seem impossible? (when in fact it's just a little over 50% of the 360 userbase ...)

I just can't fathom that many 360 owners are actually paying for Live. I pay for Live and I'd like to see it doing that well. But I'm reluctant to believe it.

Also, I think Sony would be pretty much obliged to charge as well. You can't ignore profits like that.



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Shorty11857 on 28 May 2010
richardhutnik said:

Pachter speak = Microsoft is in trouble financially.


Sheesh, does this guy even know hat "cloud" computing is?  XBox Live is NOT cloud computing.  OnLive is cloud comuting.  And speaking of Live, Pachter said Microsoft had to and WOULD raise the cost of the service.  Why?  Well, I guess Microsoft had to, plus they could get a way with it.  Of course, he was focused on Modern Warfare being all that and critical to getting people to pay more.


STOP posting what Michael Pachter has to say.  It is so wrong, it is embarrassing.


Pachter didn't say it was cloud computing, read the article before trolling him for what he didn't even say