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

Dr.Henry_Killinger on 08 June 2014
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.

Xbox is more volatile then you think. MS doesn't need to shutdown the company for the brand to be in jeapoardy.



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

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OttoniBastos on 08 June 2014
Dr.Henry_Killinger said:
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.¹ 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.² If MS can afford this loss, how can they not afford bundling the kinect at 399?

¹ - When you say "swallowed the loss" you mean drop the price without drop kinect? in this case,would not be a good idea because people just don't want kinect! That was the problem and as long as microsoft keep kinect people always would say "Xone would be cheaper without kinect",thus,"I will wait for a even cheaper kinectless bundle".With Sony having great boosts thanks to Third party games/first party games/basically everything is an excuse to boost PS4 sales right now,microsoft couldn't allow the gap between consoles to get wider(specially in USA which is basically where Xbox survives).

² - I'm not a Xbox fan(sony + nintendo gamer here o/) so i'm not spinning anything here. /o/



Dr.Henry_Killinger on 08 June 2014
OttoniBastos said:
Dr.Henry_Killinger said:
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.¹ 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.² If MS can afford this loss, how can they not afford bundling the kinect at 399?

¹ - When you say "swallowed the loss" you mean drop the price without drop kinect? in this case,would not be a good idea because people just don't want kinect! That was the problem and as long as microsoft keep kinect people always would say "Xone would be cheaper without kinect",thus,"I will wait for a even cheaper kinectless bundle".With Sony having great boosts thanks to Third party games/first party games/basically everything is an excuse to boost PS4 sales right now,microsoft couldn't allow the gap between consoles to get wider(specially in USA which is basically where Xbox survives).

² - I'm not a Xbox fan(sony + nintendo gamer here o/) so i'm not spinning anything here. /o/

TBH i quoted you arbitrarily.

The dislike for the kinect would definetly not have mattered at equivalent price points. The XB1 is weaker than the PS4, so an XB1 with the Kinect still has a substatial advantage. This "price cut" by dropping the kinect would have a faster effect then what I propose but my suggestion would have a longer and more positive effect overall. Price was never the issue, price per value was, the XB1 doesn't stand a chance at the PS4's price because of its lowered value.

Those who argued against the bundling would'nt have bought it anyway. All the have to do is advertise the Kinect as being bundled for free. Now they have irreversably admitted that the kinect is a pipe dream and it will be treated as such. MS them selves barely supported the kinect when every one had it, now its opptional, it might as well be an ouya.



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

Burek on 08 June 2014

Starts reading...

...according to Michael Pachter...

...stops there...

How that clown still has a job is beyond my comprehension. He is often very wrong, and most often absolutely wrong.



TheSting on 08 June 2014
Dr.Henry_Killinger said:
OttoniBastos said:
Dr.Henry_Killinger said:
OttoniBastos said:
Well they invested a lot of money with Kinect 2.0.

If kinect is not bundled with Xone 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.¹ 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.² If MS can afford this loss, how can they not afford bundling the kinect at 399?

¹ - When you say "swallowed the loss" you mean drop the price without drop kinect? in this case,would not be a good idea because people just don't want kinect! That was the problem and as long as microsoft keep kinect people always would say "Xone would be cheaper without kinect",thus,"I will wait for a even cheaper kinectless bundle".With Sony having great boosts thanks to Third party games/first party games/basically everything is an excuse to boost PS4 sales right now,microsoft couldn't allow the gap between consoles to get wider(specially in USA which is basically where Xbox survives).

² - I'm not a Xbox fan(sony + nintendo gamer here o/) so i'm not spinning anything here. /o/

TBH i quoted you arbitrarily.

The dislike for the kinect would definetly not have mattered at equivalent price points. The XB1 is weaker than the PS4, so an XB1 with the Kinect still has a substatial advantage. This "price cut" by dropping the kinect would have a faster effect then what I propose but my suggestion would have a longer and more positive effect overall. Price was never the issue, price per value was, the XB1 doesn't stand a chance at the PS4's price because of its lowered value.

Those who argued against the bundling would'nt have bought it anyway. All the have to do is advertise the Kinect as being bundled for free. Now they have irreversably admitted that the kinect is a pipe dream and it will be treated as such. MS them selves barely supported the kinect when every one had it, now its opptional, it might as well be an ouya.


Im pretty sure the system was released early. 8-10 months to early. The thing would have been supported had it not been rushed. No way Kinect Sports should have not been day one



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Dr.Henry_Killinger on 08 June 2014
TheSting said:

Im pretty sure the system was released early. 8-10 months to early. The thing would have been supported had it not been rushed. No way Kinect Sports should have not been day one

Launching 8 months later then it did would've been a disaster. Best case scenario, it would run into supply problems, most of its negative PR would remain unnanounced. The complexity of such psedohistory would definetly take a lot of deliberation, but MS learned the importance of being first with the 360.



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

theprof00 on 08 June 2014

Yes completely wrong kinect costs way more than 100$ as evidenced when thAt dev said kinect almost half the cost of production. They'll likely make money instead. Being pachter this is hilarious



vivster on 08 June 2014

Oh no. Papa Bill has to break one of his piggy banks now.



If you demand respect or gratitude for your volunteer work, you're doing volunteering wrong.

TheSting on 08 June 2014
Dr.Henry_Killinger said:
TheSting said:

Im pretty sure the system was released early. 8-10 months to early. The thing would have been supported had it not been rushed. No way Kinect Sports should have not been day one

Launching 8 months later then it did would've been a disaster. Best case scenario, it would run into supply problems, most of its negative PR would remain unnanounced. The complexity of such psedohistory would definetly take a lot of deliberation, but MS learned the importance of being first with the 360.

Yea i know it would have. Maybe it will be a better system for it but its just pitiful how off guard they seemed.



WhiteEaglePL on 08 June 2014

that's harsh.