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Forums - Microsoft - Edge: Microsoft's Xbox division loses $229 million

@ Mazty

Congrats on one of the more nonsensical posts I've read in a while.

The 360 hasn't been a success? That is litteraly laughable at this point, especially considering we don't know if the 360 wasn't profitable this quarter there's other devices in the same division. But forget that let's just use simple facts to tear apart your post.

1. The 360 has been BY FAR the more profitable of the HD Twins. Every console and Kinect is sold at a profit.
2. It sell MASSIVE amounts of software including the majority of sales for the big 3rd party games such as Battlefield and COD.
3. It has increased the Xbox brand name is a rediculous amount, over doubling the sales of the original Xbox and well on its way to do even more.
4. It is the oldest console on the market and yet outsells the Wii, could have very well outsold the PS3 last year, and is on track to still a fantastic year considering how old it is.
5. It has the highest selling exclusive HD franchise. Halo
6. It posts rediculous profts from Xbox Live, as well as having the most used best supported online system.
7. It was the first console to introduce a trophy system.
8. It has a rediculous success with its motion periphreal Kinect, getting it into millions of homes and profiting with it.
9. It has universal 3rd party support, every 3rd party developer pretty much has released a game for it.
10. Most important of all it has posted a complete profit, and has recouped some of the costs lost on the original Xbox, while ensuring further success by becoming such a strong brand.

But your right, it hasn't been all that successful



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mike_intellivision said:
Funny.Nintendo reports losses in that range and everyone writes the company off. Microsoft reports losses in that range and everyone shrugs.

While admittedly Microsoft has other profitable units to keep the bottom line "in the black" -- continued losses could lead analysts and investors to call for the jettisoning of the games division.

Mike from Morgantown


There's nothing 'funny' about it; it's obvious economics.

Nintendo have nothing but their game division, whereas MS have numerous other incomes, whether it's Windows or other lesser known revenue streams such as their revenue from every android device sold, which is about $400 million a year. There are no signs that the game division will be ditched, but more likely that analysts will be speculating if the 360 has hit it's expiry date.



@pezus

shhhhhhh, I make no mistakes my logic is superior and unarguable



But yeah after I posted Battlefield I realized it wasn't the best choice bue eh like I said in now way does it diminish my point.



When will the R&D cost of the new (possible new) console will appear in its financial report? next year?, next 3 months? If they already have development kits in studio's hands the R&D must be pretty advanced by now.



zhao3gold said:
Try harder to down play the success of 360, try harder.

We have an industry where success means you loss money less than your competitors?  That is a sick industry set for major problems.  Sony is hurting a bunch, probably will push the create a cashcow business model, which means they won't be releasing a new console anytime soon.  

I was going to wonder if it was the WinPhone platform that was the reason for the loss, but Microsoft blamed soft game sales for it.  It is possible will look at a new console towards the end of next year.  It would be possible Microsoft uses the CES next year to get word out, and skips the usual cycle.



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@flagstaad

R&D for Nextbox has already appeared in their financials. R&D costs for the quarter up by $100 million dollars.

At this point we know Nextbox development is in FULL swing. Exciting for sure next-gen is right around the corner!!



BenVTrigger said:
@ Mazty

Congrats on one of the more nonsensical posts I've read in a while.

The 360 hasn't been a success? That is litteraly laughable at this point, especially considering we don't know if the 360 wasn't profitable this quarter there's other devices in the same division. But forget that let's just use simple facts to tear apart your post.

1. The 360 has been BY FAR the more profitable of the HD Twins. Every console and Kinect is sold at a profit.
2. It sell MASSIVE amounts of software including the majority of sales for the big 3rd party games such as Battlefield and COD.
3. It has increased the Xbox brand name is a rediculous amount, over doubling the sales of the original Xbox and well on its way to do even more.
4. It is the oldest console on the market and yet outsells the Wii, could have very well outsold the PS3 last year, and is on track to still a fantastic year considering how old it is.
5. It has the highest selling exclusive HD franchise. Halo
6. It posts rediculous profts from Xbox Live, as well as having the most used best supported online system.
7. It was the first console to introduce a trophy system.
8. It has a rediculous success with its motion periphreal Kinect, getting it into millions of homes and profiting with it.
9. It has universal 3rd party support, every 3rd party developer pretty much has released a game for it.
10. Most important of all it has posted a complete profit, and has recouped some of the costs lost on the original Xbox, while ensuring further success by becoming such a strong brand.

But your right, it hasn't been all that successful


1. Let's see the figures. I'm curious as to how much the 360 has brough in when you consider the millions that will have been replaced due to the RROD. Each RROD will cut into the revenue if MS have to replace it. 
2. Every console sells software so what exactly is your point?
3. That's a completely subjective value. Has it increased the brand enough that it's worth $100 of $ 1 billion? And what about the losses due to bad publicity? Again, how much is that worth?  
4. It only just outsells the wii this year and last. Every year before then it was outsold dramatically by the wii, which has almost 50% more console on the market...A pretty redundant point if I've ever seen one, more so if you consider the PS3 now outsells the 360.
5.  Halo ODST & reach sold less then Halo 3. And where outsold by CoD. Again, what is your point? Unless you have financial figures to show the worth of the Halo series, it is a subjective point which is redundant when talking about economics. 
6. Xbox Live profits are how much? And does this offset the replacement 360's and ultimately make the console more profitable then the PS3 or Wii?
7. Who cares about trophies? We are talking about money here, not what you as a gamer enjoy.
8. And you determined Kinect was a success how? Sales for the 360 temporarily increased, but now have dropped lower then the PS3. Seems a bit of a one-hit wonder to temporarily increase sales rather then any sustained increase. 
9. Most developers develop for every console. That is to do with coding and it makes more sense to release a game on 3 consoles then 1. What exactly is your point here?
10. Complete profit even though the gaming division posted a loss??? Also if it has been so successful then why does it have the lowest sales of all 3 consoles? And how strong is the brand name? The Xbox simply joined that generation late on but was not chastised in anyway other then it was rather large. Also with the failure of HD DVD this begs the question how will MS get out of the problem with optical media? If they go for just downloads, then that reduces their market, and if they opt for bluray then they give the competition money. Just saying "XBOX has recognition" doesn't mean anything. Enron had recognition and where are they now?

Please leave any fan rhetoric out of this disucssion (trophy system). This is about money, not what you personally enjoy about the console. Unless you can show certain features/events have increased profit and/or sales, don't mention the point. 



mike_intellivision said:
Funny.Nintendo reports losses in that range and everyone writes the company off. Microsoft reports losses in that range and everyone shrugs.

While admittedly Microsoft has other profitable units to keep the bottom line "in the black" -- continued losses could lead analysts and investors to call for the jettisoning of the games division.

Mike from Morgantown


mike_intellivision wrong as usual.

Microsoft is coming off selling 100% more consoles the year before, thats more of a blip than anything else.

Nintendo on the other hand has had decelerating sales and earnings (now losses) for 3 years, thats a trend.

Microsoft has had losses in their online division (one that includes Bing) since its enception, no one is calling for the jettisoning of that division.  For EDD, outside this quarter, the last time the EDD had a loss was Q4 2010 and has had 9 profitable quarters since the beginning of 2010



mike_intellivision said:
Funny.Nintendo reports losses in that range and everyone writes the company off. Microsoft reports losses in that range and everyone shrugs.

While admittedly Microsoft has other profitable units to keep the bottom line "in the black" -- continued losses could lead analysts and investors to call for the jettisoning of the games division.

Mike from Morgantown

This talk has floated around in various articles that bubble up on here.  One has to express concern over the industry as a whole with reports like that, because talk of jettisoning game divisions would affect about every console maker now at this point, and not just Microsoft.



@ Mazty

this isn't an opinion and your post is litteraly the fan rhetoric your talking about not using.

If Dirty, Seece, or Kowen were in here they could show you exactly how much the 360 has made in PURE financials. Its not a debate, end of story the 360 has been a succes and posted a profit as a whole, something its nearest competitor the PS3 has not.

The Xbox brand as a whole has not been profitable due to the massive losses inquired by the original Xbox but why in 2012 your arguing that the 360 isn't successful feels..............well how should I put this nicely..........late to the party. Your post looks like something straight out of 2007.