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Forums - Microsoft - Sure Kinect will have a lot of sales but will it bring in that much profit?

Icyedge on 03 October 2010
ironman said:
SpartenOmega117 said:

What is the budget for advertising Kinect? Like 200,000,000? With a advertiisng budget like that how is Microsoft going to be successful financially? Also we don't even know if kinect will sell that well (even though it is likely). Do you guys think it will will bring in a lot of profit?

You are assuming Kinect is a major part of MS's business, reality is, it's just a drop in the bucket, It's not going to do much if anything to harm MS's bottom line if it fails. At any rate, it won't make a profit right away, but over time it will. Anybody with a rudementary knowlewge of business knows that. Andthen lets not forget, this is also set up to be a huge contendor next gen if it works. So even if they lose money this gen, nexty gen it will assuradly bring a profit. A really good example of this is the origional Xbox, I don't think it ever made a profit but it set MS up nicely for this gen.

Your right, they are taking a chance worth taking. Whatever the outcome. The major incentives it can gives them justify the high risk related to this product. We can argue whether its high or low risk. I personally consider high risk, but still, its worth it considering the possible outcome and Microsoft means.



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damndl0ser on 03 October 2010
Mr.Metralha said:
damndl0ser said:
Mr.Metralha said:

Profits for Microsoft Gaming division isn't their primary goal.


I get a really big laugh at quotes like these.

 

Of course profit is very important to MS's gaming division.  Without profits eventually even Microsoft has to fail.

On Topic, I don't think the marketing will be quite so high.  Kinect has had a lot of free marketing so far and I expect this to continue a  lot.  If it gets good word of mouth then it will need even less advertising.  I am certain that if Kinect is a big success they will make a shitton of profits ( not only off of Kinect but also software, hardware and live memberships).

Since Microsoft introduced the Xbox brand back in 2001, they haven't seen profit till ~mid 2008.

I get a really epic big ass laugh at misinformed people like you.

 

Edit: What I meant with my sentence is that Microsoft can introduce products at a loss with higher purposes than just to triumph on that market...

 

Let me get this strait, I am mis-informed?  Can you please tell me how?  I never said MS didn't lose a boatload.  I just said they had intentions on making it back and then some.

Microsoft was new to the market and they planned to lose a shit load of money on their first box just to get their foot in the door. (they never had any intentions of just pouring money away without a return on investment just to hurt sony,  If you believe any different your in la la land....)  In the long run it will pay off in spades, the 360 has been profitable for nearly 4 years now and I would assume they will be break even on profit/loss before the end of this generation and probably be profitable. ( even if you count the first xbox).  So laugh all you want, what I said stands true.



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