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Forums - Microsoft Discussion - Xbox One Breaking Even, Profits with Software!

Goatseye on 06 September 2013
IsawYoshi said:
Goatseye said:
 

I always try to interpret the Gif in your sig and I can't do it. Care to explain?

I suppose you quoted me..?

 

In that case, the point is that Nintendo just does their thing and goes full steam ahead. And then Microsofts car, which almost hits Nintendo, gets overrun by Sony. The gif was made right after E3 (I believe) if that helps understanding the whole Sony crashing MS thing :p

 

Also, I think the cycle represent that Nintendo have a weaker console. I'm not sure though.

I thought it would be opposite in some form.

Like Sony trying to ram Nintendo with LBP Kart, Pet games, Wiimote look alike, All Star for Smash Bros. Then MS comes and halves Sony's marketshare. Something like that.



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Zekkyou on 06 September 2013

I wonder how long it will take for it to break even in regards to its R&D, marketing and deals.



Zappykins on 06 September 2013
Seece said:
bobgamez said:
so...why isnt it cheaper?


Because MS are a very money minded company, whereas Sony's aim is to sell hardware being strcitly a hardware company.

Well, Sony planned on making money with every PS4 they sold.  It's more to do with the falling of the yen vs the dollar than an executive decision they made. They want to make money, just been unlucky.

I'm impressed Microsoft can do this.  As we know the new Kinect is super expensive, and the chip for the Xbox One is huge.

Yet, I still wish they had upgraded the hardware more (like what Tim Sweeney wanted).  But we still probably have a few more surprised till Novemeber.



 

Really not sure I see any point of Consol over PC's since Kinect, Wii and other alternative ways to play have been abandoned. 

Top 50 'most fun' game list coming soon!

 

Tell me a funny joke!
IsawYoshi on 06 September 2013
Goatseye said:
IsawYoshi said:

I suppose you quoted me..?

 

In that case, the point is that Nintendo just does their thing and goes full steam ahead. And then Microsofts car, which almost hits Nintendo, gets overrun by Sony. The gif was made right after E3 (I believe) if that helps understanding the whole Sony crashing MS thing :p

 

Also, I think the cycle represent that Nintendo have a weaker console. I'm not sure though.

I thought it would be opposite in some form.

Like Sony trying to ram Nintendo with LBP Kart, Pet games, Wiimote look alike, All Star for Smash Bros. Then MS comes and halves Sony's marketshare. Something like that.

I see where you're coming from, but as I said, it was made around E3, and it was pretty much everyone against one at that point.



teigaga on 06 September 2013

as expected. This is the reason for the system being 500, Kinect is just a convenient excuse. although I dont doubt its expensive.



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teigaga on 06 September 2013
RolStoppable said:
If that's true, then it equates an admission of stupidity on Microsoft's part.

Yes, you can argue that selling the hardware at break even or a slight loss is good for profitability, but we are looking at two consoles (X1 and PS4) that are substitutes for each other and one of them is €/$100 cheaper. Microsoft could easily see such slow hardware adoption that the long term profitability takes a big hit due to much lower software sales compared to taking a hit early on and getting the hardware in people's hands. There's also the consideration of Xbox Live subscriptions and the online focused nature of the X1 and PS4 on the whole which leads to people buying the system that some of their friends already have. Having a bad start could very well snowball into something much worse for Microsoft.

But thats the thing, they arent poised to have a bad start. Theres a lot of momentum behind the machine, XBL has created loyalty the PS2 wishes it had.  

Most early adopters will pick the console they want, not which ones cheapest. 



Goatseye on 06 September 2013
teigaga said:

But thats the thing, they arent poised to have a bad start. Theres a lot of momentum behind the machine, XBL has created loyalty the PS2 wishes it had.  

Most early adopters will pick the console they want, not which ones cheapest. 

And MS has Project Spark which is tons of games in 1. Plus the most variety available in titles in any launched console.



teigaga on 06 September 2013
Goatseye said:
teigaga said:
 

But thats the thing, they arent poised to have a bad start. Theres a lot of momentum behind the machine, XBL has created loyalty the PS2 wishes it had.  

Most early adopters will pick the console they want, not which ones cheapest. 

And MS has Project Spark which is tons of games in 1. Plus the most variety available in titles in any launched console.

Kinect sports and Titan fall which will surely be marketed like an Xbox One exclusive and heavily bundled, probably for free. 

The price gap between the Xb1 and PS4 big but not as drastic as the Xbox360 and PS3 at launch. And Once again microsoft as the more commercial line up, and I say that as someone intends to buy both consoles but stick with the ps4 for a year or 2.