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

LudicrousSpeed said:
finalrpgfantasy said:
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.  

Why? You have people with PS4's now saying the PS3 mistakes and huge losses for Sony were actually a good thing.

Who said that? I highly doubt that sony's losses for the  ps3 was a good thing, considering the current financial position of the corporation.  



Around the Network

XB1 has been selling very well no?? it just didn't sell as good as PS4 why suddenly it sounds like a flop?? unless not being at no.1 will be a failure to them...



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."

qft

If you're losing money like this it means your fucking up something especially when its attributed to a single division. Doesn't matter if they can afford it.



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

Well they invested a lot of money with Kinect 2.0.

If kinect is not bundled with Xone,it will not sell as much as they projected.(and invested for)

Plus,their Titanfall moneyhat+marketing+free bundle must have cost a lot for MS.

Plus²,the console by itself is not selling like they wished.

So 1 billion loss for Xbox division actually make sense.

On the other hand,it's michael pacter so MS probably earned 1 billion dolars. ;)



OttoniBastos said:
Well they invested a lot of money with Kinect 2.0.

If kinect is not bundled with Xone,it will not sell as much as they projected.(and invested for)

Plus,their Titanfall moneyhat+marketing+free bundle must have cost a lot for MS.

Plus²,the console by itself is not selling like they wished.

So 1 billion loss for Xbox division actually make sense.

On the other hand,it's michael pacter so MS probably earned 1 billion dolars. ;)

Wait one fucking minute.

I said that the Xbox should have kept the Kinect and swallowed the loss, to give the XB1 value and sacrifice profit for marketshare. The response I got from fans was something along the lines of "MS wants to make a profit with Xbox. they can't make a profit if they drop the price and include the kinect"

Regardless of how much money they will actually lose, I find it quite telling that now Xbox fans are saying that a 1billion dollar loss doesn't matter and that MS can afford it. If MS can afford this loss, how can they not afford bundling the kinect at 399?



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

Around the Network

Im sorry guys, am I supposed to say MS should start selling buildings and scrapping projects to "trim fat"? Then would it be fine? Because people seem to be pissed that I stated MS knows how much they're expected to lose/not make by selling Kinectless bundles, giving Xbox Live refunds, Games with Gold, Deals with Gold, and games in development. They have their own analysts, its obvious that they're prepared to lose a good amount since they're doing all of this in the first place. 180's take money, MS has it. Better to do it now than be stubborn, not change anything and lose even more money every Fiscal year.



RolStoppable said:
HokageTenshi said:

XB1 has been selling very well no?? it just didn't sell as good as PS4 why suddenly it sounds like a flop?? unless not being at no.1 will be a failure to them...

Xbox One had a good launch, but that was about it. Sales have dropped off sharply since then and the console now finds itself in unhealthy territory. At a rate of 50k units sold per week you are looking at a full year of about 5m units which is far below Microsoft's expectations.

I'm sure WD is going to give the XB1 a hefty boost.



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

Honestly, Microsoft probably won't even flinch but it is interesting to see this outcome.



"Trick shot? The trick is NOT to get shot." - Lucian

It cost MS over 1 billion to deal with RRoD... a billion to ms is like $100 to most people. Is it noticeable? yes... are they shutting down the company because of it? no.



NeoRatt said:
It cost MS over 1 billion to deal with RRoD... a billion to ms is like $100 to most people. Is it noticeable? yes... are they shutting down the company because of it? no.

That's the loss so far. It will get bigger the way things are.