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Forums - Sales - Is Microsoft the only one of the big 3 who knows how to run a video game business at this point?

Seece on 28 July 2011
zarx said:
Seece said:
zarx said:
Seece said:
zarx said:
Seece said:
zarx said:

New platforms are expensive to introduce and MS are the only ones currently not introducing one. Also the Xbox brand has been bleeding hundreds of millions for years and cost billions to establish and will need another 15 years of profit to make the money back. 

Being the only one bassed in the USA where they make they majority of thier sales also helps with the weak US dollar which hurts Sony and Nintendo.


Havn't been doing your homework. X360 is practically break even for the division and if profits remain the same, the entire division will break even (yes even that 4.2 Bill Original Xbox diaster) will be cleared within 3 years.


admitadly my info is pretty old...

Wasn't the bill for the OG Xbox ~$6 billion with ~$4 billion in losses the devision first turned an operating profit (as in actually made more than they spent or invested not just more than the costs that year) in 07 with $89 million in operating profit since then they have made more each year but I don't think they have made back the billions they lost. But if you can provide the data showing that they have made a net profit over the life of the Xbox brand I would love to see it.

They lost $4.2B on original Xbox, then 06/07 fiscal years which was 360 debut and RROD fiasco (with $1b included) they lost $3.2B, in 08,09,10 and 11 they've profited every year to the tune of $2.7B, but most notably $1.3B this last year alone. -$4.7B is the overall loss of the division now with $500 mill to go before breaking even since the 360 debuted.


But with all of this we have to remember other products that had an impact in the division like the failure of the Kin and Windows phone ect.

Going forward MS have a solid income from Live, and I image Kinect is a great deal of that profit this last year. So yeah, they should be break even in less than 1 years lol, unless they go for a PS3 style system next gen and lose buckets, but MS are obviously savvy in the industry these days .. I don't think we'll ever see them go down that road again.

could you provide a source for that?  By my sources in fiscal 2010 theymade $618 million in net profit from the whole devision, and in fiscal 2009 only $169 million and $426 in 08 which makes $2.5b where is the other $200 million?  so that is another $700 million profit more they need to make before the 360 breaks even and then they have to work on the $4.2b in OG Xbox losses and considering in a couple years they will likely slide back into the red when they launch their next console it's going to take them quite a while to turn a profit on the brand. The 15 years is probably hyperbole I admit...

No ourse, I inputted the data years ago and have tracked it from MS ever since, so their website I suppose, I know some guy on GAF is floating around incorrect numbers though.

But I just looked up the last 4 years of financial reports from MS and the numbers add up to 2.5b, you may want to recheck your numbers.

MS are known to adjust their numbers, as I have already back checked old numbers and financial releases contradicting their numbers. I guess if they've updated them though I should update mine.



 

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Degausser on 28 July 2011

Sony is a hard one to quantify remember. The PS3 wasn't just a video game system that was supposed to make them money off hardware and software sales, it was supposed to be a catalyst for all Sony product sales. Drive more HD TV adaption, Surround sound products win the HD format war for Blu-Ray, help sell HD video capture camera things, be an online hub for Sony to advertise / sell all their various Sonic Music / Film products blah blah blah... and more recently it's now one of the main things being used to push 3D technology, thus selling Sony 3DTV's, 3D Blu-Rays, glasses etc.

The PS3 bled a lot of money but it's hard to quantify it all as Sony are such a huge company and everything it does is there for the reason of helping Sony make money from other products too. They've done a great job at establishing IP in the past 5 years or so too.

Nintendo clearly made a ton of money too... I'd assume a lot more then Microsoft, they're just in a transition period right now.



LivingMetal on 28 July 2011

I would argue that Microsoft is better at running a business when you look that their history. But I would also argue that they are the worst catering to console gamers. And I don't mean "bad." I'm just saying that Nintendo and Sony are better at it.



zarx on 28 July 2011
Seece said:

MS are known to adjust their numbers, as I have already back checked old numbers and financial releases contradicting their numbers. I guess if they've updated them though I should update mine.


isn't that illegal? I thought you were required by law to list the actual numbers as that is how investor dividens are calculated, you can't just go back and change the numbers they are supposed to be facts. 

I guess i shouldn't have used third party mirrors or the reports if that is true, but I couldn't find the full reports from MS.



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Seece on 28 July 2011
zarx said:
Seece said:

MS are known to adjust their numbers, as I have already back checked old numbers and financial releases contradicting their numbers. I guess if they've updated them though I should update mine.


isn't that illegal? I thought you were required by law to list the actual numbers as that is how investor dividens are calculated, you can't just go back and change the numbers they are supposed to be facts. 

I guess i shouldn't have used third party mirrors or the reports if that is true, but I couldn't find the full reports from MS.

I'll go back over all their reports and let you know what I find.



 

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Acevil on 28 July 2011

I think Nintendo generally has the best safe formula (Even if they have one bad quarter they generally make 500million plus each year. Microsoft however has found a winning formula.

Seece good job with the information, I will be going back to DB work now.



 

non-gravity on 28 July 2011

Did Sony actually release a profit (or loss) figure specifically for the Playstation division this quarter?



ethomaz on 28 July 2011
non-gravity said:
Did Sony actually release a profit (or loss) figure specifically for the Playstation division this quarter?

1.7 billion yen (CPS division)



NYANKS on 28 July 2011

Microsoft has the benefit of Live subscriptions, which Sony will probably be forced to mimic next gen. Sad face



Goddbless on 28 July 2011

I think this thread is very premature. You can't make those assumptions off of a single quarter. Also Microsoft is in a good space right now but they can't get complacent because they need to figure out how to become profitable even faster next gen.



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