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

Barozi on 20 April 2012
Mazty said:


That's not the whole story though. Unlike other games, MS will have to encure all the overheads for the development of Halo games, unlike CoD. So whereas other games may just make them royalties, there is no expense for MS. 

Plus, you have just shown why MS should make Halo multiplatform; they may make more revenue that way, and that's in their best interest. However this is all some bizarre digression. My point initially was that the 360 hasn't been some AAA success that someone was claiming it was, nothing more, nothing less. 

http://www.vgchartz.com/gamedb/?name=halo&publisher=&platform=X360&genre=&minSales=0&results=200
Over 30m now. Likely 40m at the end of the gen.

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/02/anatomy-of-a-60-dollar-video-game.html
You don't have to be a genius to see that Halo makes MS more money than COD.


What would be the point if every game was on every platform ? Answer: there wouldn't be any consoles. But Microsoft and especially Nintendo don't want that since their consoles are printing money for them.



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gottalovethis on 20 April 2012
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




BenVTrigger on 20 April 2012

@ Mazty

Bro its a fact. Off of COD MS only makes a platform royalty, the majority of the cash goes to Activision

Off of Halo 100% of the earning go straight into the pockets of MS.

If we are conservative and say the average Halo game this generation sold for $40 ( and that's being conservative taking all the $60 game purchases out of the equation in order to compensate for price drops) we are looking at approx....

1.2 Billion dollars in sales this generation alone from the Halo franchise. You honestly think MS made more than that from COD?



Slimebeast on 20 April 2012

I can never explain the numbers in these reports. How on earth can the division where Xbox is in lose money?

We know the Xbox makes up the majority of the division's revenue and we know that MS makes money on each hardware sold and from every software sold and tons of profits off of Xbox Live.

Also it's disappointing to hear they shipped only 1.4 million consoles, although expected after the overshipping.



Millenium on 20 April 2012

@Ben: That's very conservative indeed, all the limited and legendary editions and the increased game price in some countries probably make it a bit higher than that

As for the argument, your right, it's simple logic that Halo makes Microsoft more money than COD, anyone arguing otherwise is just...



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Mazty on 20 April 2012
BenVTrigger said:
@ Mazty

Bro its a fact. Off of COD MS only makes a platform royalty, the majority of the cash goes to Activision

Off of Halo 100% of the earning go straight into the pockets of MS.

If we are conservative and say the average Halo game this generation sold for $40 ( and that's being conservative taking all the $60 game purchases out of the equation in order to compensate for price drops) we are looking at approx....

1.2 Billion dollars in sales this generation alone from the Halo franchise. You honestly think MS made more than that from COD?


Once again, gross profit is not the same as net profit. 



BenVTrigger on 20 April 2012

@ Millenium

Yeah I know its way conservative its probably much closer to 1.5 - 1.8 Billion when you take into account Limited and Legendary versions as well as digital copies but he seems like the kind of poster where if I would have posted a figure averaging the game at $60 he would've tried to argue with me that the majority of people buy the game when its cheap. Which is historically not true at all consiering Halo does massive amounts of sales in its first couple months when the game is full priced.



Mazty on 20 April 2012
Barozi said:
Mazty said:


That's not the whole story though. Unlike other games, MS will have to encure all the overheads for the development of Halo games, unlike CoD. So whereas other games may just make them royalties, there is no expense for MS. 

Plus, you have just shown why MS should make Halo multiplatform; they may make more revenue that way, and that's in their best interest. However this is all some bizarre digression. My point initially was that the 360 hasn't been some AAA success that someone was claiming it was, nothing more, nothing less. 

http://www.vgchartz.com/gamedb/?name=halo&publisher=&platform=X360&genre=&minSales=0&results=200
Over 30m now. Likely 40m at the end of the gen.

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/02/anatomy-of-a-60-dollar-video-game.html
You don't have to be a genius to see that Halo makes MS more money than COD.


What would be the point if every game was on every platform ? Answer: there wouldn't be any consoles. But Microsoft and especially Nintendo don't want that since their consoles are printing money for them.


But it depends on figures. 1:1 yes, Halo makes more, but if CoD sells significantly more then Halo, which it has, MS may make more money from CoD.

As I said to another user, a console doesn't just have game to sell, but technology. The Wii sold on it's controls, and the PS3 helped Sony enshrine the next optical media format.



sperrico87 on 20 April 2012
gottalovethis said:
Should read $17bn - I did try to edit but this dumb website doesn't work properly.


Yeah, I have to use Firefox in order to post or edit...Internet Explorer and VGChartz are incompatible.



 

Barozi on 20 April 2012
Mazty said:
Barozi said:
Mazty said:


That's not the whole story though. Unlike other games, MS will have to encure all the overheads for the development of Halo games, unlike CoD. So whereas other games may just make them royalties, there is no expense for MS. 

Plus, you have just shown why MS should make Halo multiplatform; they may make more revenue that way, and that's in their best interest. However this is all some bizarre digression. My point initially was that the 360 hasn't been some AAA success that someone was claiming it was, nothing more, nothing less. 

http://www.vgchartz.com/gamedb/?name=halo&publisher=&platform=X360&genre=&minSales=0&results=200
Over 30m now. Likely 40m at the end of the gen.

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/02/anatomy-of-a-60-dollar-video-game.html
You don't have to be a genius to see that Halo makes MS more money than COD.


What would be the point if every game was on every platform ? Answer: there wouldn't be any consoles. But Microsoft and especially Nintendo don't want that since their consoles are printing money for them.


But it depends on figures. 1:1 yes, Halo makes more, but if CoD sells significantly more then Halo, which it has, MS may make more money from CoD.

As I said to another user, a console doesn't just have game to sell, but technology. The Wii sold on it's controls, and the PS3 helped Sony enshrine the next optical media format.

lol but twice as much sales are still not enough for CoD. Even with development costs and marketing included for Halo. Do the math.