By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Microsoft Discussion - Xbox One missteps may end up costing Microsoft $1 billion

steverhcp02 said:
Dark_Feanor said:
I don't understand the article wording:

Will MS loose 1b by cuting Kinect or that is this the revenue they lost ( 2mi consoles x $500 ) advantage Sony gain early on.


I agree, from teh way I read it Pac is saying over the life of the console its costing MSFT 1 billion. Which he could not know....no one could.

It most certainly has NOT cost MSFT 1 billion dollars LTD so it cannot be up to now that hes referring to.

Moral of story, Pachter.

That's why it's called a prediction.  He's estimating that if MS hadn't made the missteps that they would be in much better position now and going forward.  That if things continue the way they have been, that they will have missed out on $1B dollars in revenue.



Around the Network

Ms can afford it lol



VITA 32 GIG CARD.250 GIG SLIM & 160 GIG PHAT PS3

i'm sure MS doesn't mind throwing a few billion here and there to keep xbox afloat.



may:P... even it happens...she has windows and software section...



While it's true that Microsoft can absorb the loss, it seems like people are trying to marginalize that loss. It's like saying you can lose a kidney because you have another--it's still a very bad thing.

Worst case scenario, Microsoft gets out of the core gaming business. Yes, it's way to soon to be thinking about that but imagine if Sony keeps doing things right and the Xbox brand never recovers. I don't think Microsoft management is committed to Xbox the way Sony is to Playstation. They'd certainly cut it loose if it became dead weight.

I don't think that will happen but it would also be foolish to pretend like Microsoft isn't watching Xbox performance closely. I promise you, they aren't simply going to blow off heavy losses with, "It's OK, we can afford it."



Around the Network
whatever said:
steverhcp02 said:
Dark_Feanor said:
I don't understand the article wording:

Will MS loose 1b by cuting Kinect or that is this the revenue they lost ( 2mi consoles x $500 ) advantage Sony gain early on.


I agree, from teh way I read it Pac is saying over the life of the console its costing MSFT 1 billion. Which he could not know....no one could.

It most certainly has NOT cost MSFT 1 billion dollars LTD so it cannot be up to now that hes referring to.

Moral of story, Pachter.

That's why it's called a prediction.  He's estimating that if MS hadn't made the missteps that they would be in much better position now and going forward.  That if things continue the way they have been, that they will have missed out on $1B dollars in revenue.

Yeah....i know what a prediction is. And whats fun about them is when people make a bunch and are wrong we get to criticize them for continuing to make them especially when they dont include nuances, rationale, logic or numbers.

Also my 2 year old niece could "estimate" that if MSFT (or any living being/entity for that matter) didnt make missteps they would be in "better" positions. This isnt an estimate. It is a statement about the facts of the universe. IE: If someone makes better more desirable decisions, in hindsight they would be better off because the nature of a misstep is that of not stepping appropriately, thus....duh?. Great defense for Pac you have there. Again he is regurgitating novice things and is labeled a professional or even dare I say an "expert" for such "estimations"

So I am guessing you either don't know who Pachter is and his history or are just happy to see what he is saying and choose to ignore the source. I would imagine if someone "predicts" a company to lose 1 billion dollars (where did he get that number from) then they might want to offer some insight as to how they arrived at that sum. Pachter never does this. He has no idea.

Again. Pachter. 



BeElite said:
As ms fans would say, a bill is nothing for Micro$$$soft. Likely they will lose a lot, I'm sure their costs estimates and overall figures for this gen were based on far higher X1 sales they they are having and likely will have. All will factor in to some serious financial negatives, luckily ms can easily eat em with out even a hiccup.


Yes but companies are formed to make money, not make it and then lose it.  A loss is a loss, and either way it could lead to no new xbox generations....



pokoko said:
While it's true that Microsoft can absorb the loss, it seems like people are trying to marginalize that loss. It's like saying you can lose a kidney because you have another--it's still a very bad thing.

Worst case scenario, Microsoft gets out of the core gaming business. Yes, it's way to soon to be thinking about that but imagine if Sony keeps doing things right and the Xbox brand never recovers. I don't think Microsoft management is committed to Xbox the way Sony is to Playstation. They'd certainly cut it loose if it became dead weight.

I don't think that will happen but it would also be foolish to pretend like Microsoft isn't watching Xbox performance closely. I promise you, they aren't simply going to blow off heavy losses with, "It's OK, we can afford it."


Exactly.



Just because MS has the money doesn't make it anymore okay.



think-man said:
Just because MS has the money doesn't make it anymore okay.

Exactly this.  I'm apalled to hear people say that it is okay to lose $1 billion, even though they can afford it.