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Forums - Microsoft - When will 360 be in the black?

toastboy44562 on 03 December 2010
Xbbjf9s said:
toastboy44562 said:
Xbbjf9s said:
toastboy44562 said:
Xbbjf9s said:
toastboy44562 said:

When will the 360 finally get out of the hole of the rrod fixing costs? They make billions off of live in the last few years, kinect seems to be quite profitable (~50 dollars to make kinect camera and they sell it for 150 dollars), games like halo reach, fable, gears etc. bring in a lot of money. The system itself breaks about even mabye even makes a little money...how come they havn'nt made a ton of money overall?

Pardon my ignorance but how big was the rrod issue?

i think 3 billion- 5 billion in the hole. but i could be wrong

holy shit! so they are basically still trying to recover the loss for free repairs? Could that be a reason why live is going up in price?

i believe they are trying to cover repairs. and nope it was confirmed the live price went up bacause activision demanded it. because over 60% of people get live for call of duty ...

ugh feeding the beast. Really? COD has more online players than halo games? I find that hard to believe.

yup a lot more. Cod BO and MW2 were higher than reach last week i believe. plus cod4, w@w are still played a lot



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toastboy44562 on 03 December 2010
Username2324 said:

To the $50 Kinect comment.

 

In an interview with a Sony interview, it was suggested that the tech behind Kinect may actually be fairly expensive. Those estimates from sites is based on part costs alone usually, and do not include actually assembly, any contracts between designer and manufacturer, shipping and then any markup at the shelf from the retailer. So, in reality Microsoft is probably making little to no money on Kinect hardware.

oh ok that makes sense but they're still gonna make a killing off of kinect sports (1.8 million by years end i  think)



Seece on 03 December 2010
Username2324 said:

To the $50 Kinect comment.

 

In an interview with a Sony interview, it was suggested that the tech behind Kinect may actually be fairly expensive. Those estimates from sites is based on part costs alone usually, and do not include actually assembly, any contracts between designer and manufacturer, shipping and then any markup at the shelf from the retailer. So, in reality Microsoft is probably making little to no money on Kinect hardware.

suggested ... from a sony interview lol. That site that breaks down products and works out its costs has it at $56 a unit.



 

toastboy44562 on 03 December 2010

thanks for the chart seece



Seece on 03 December 2010
toastboy44562 said:

thanks for the chart seece

No problem!

I expect MS to make a killing this Q, I won't put a figure on it just in case I dissapoint myself, but I just have a gut feeling it'll be KA CHING!



 

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toastboy44562 on 03 December 2010
Seece said:
toastboy44562 said:

thanks for the chart seece

No problem!

I expect MS to make a killing this Q, I won't put a figure on it just in case I dissapoint myself, but I just have a gut feeling it'll be KA CHING!

Me too. Not only did they not cut prices, they cut prices with a smaller machine and raised the average price of the 360.

$$$



Stinky on 03 December 2010

I recall that MS put aside a RRoD fund specifically to service this fault, at the time it was $1 billion. I haven't seen any announcement that they have exceeded this amount, and the endemic fault has largely been removed in the past few revisions. So any other amount is conjecture.

Hardware costs aside, it is interesting to note software sales on the 360; every title in the 360 top 50 has sold more than more than two million copies, the only current console to do that. On top of the profitable xbox live service, I'm sure that MS is recouping.



ramses01 on 04 December 2010
Seece said:

Here is a handy chart I made earlier.



I believe it's accurate ...

The purple is the timeframe when the 360 was out and losing money, the latter green is since 360 has been making money (yes since 2007!) the green at the top is original Xbox and all losses.

So since the 360 the E&D Division stands at about 1.449 billion to go before 360 is profitable.

The thing to note here though is that products come alone like the Kin (previous Q? or one before) and kill any profit. BUT the division is mostly made up of 360/Live.

Over the coming months with the revisions to the 360, Live price increase, Kinect (making a profit) and SW, the E&D division should make a killing, I estimate the 360 and E&D division to break even (since 360 launch) by calender year Q1 2012. Perhaps much sooner though tbh.


Since we don't know how much the rest of the EDD was losing, we can't be sure how close to lifetime breakeven they are, but it is certainly possible that they have passed that point already. 



MonstaMack on 04 December 2010

The thing is with Microsoft E&D they took the losses on Zune, Kin, etc. so they could have made total profit on the 360 years ago - but only MS knows for sure the real costs. However, if you count the original XBox costs MS has a long way to go. Depending on how they handle the next xbox costs it could be many years before MS takes a real profit.



It's just that simple.

yo_john117 on 04 December 2010

Wow judging by Seece's chart it looks like the 360 might be getting somewhat close to breaking even....a couple more years like this and the 360 will have broken even and a couple more years after that MS might be able to recoup from the original Xbox losses too.