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

DeadBigfoot21 on 08 June 2014
Baalzamon said:
DeadBigfoot21 said:
Baalzamon said:
DeadBigfoot21 said:

I dont know but i feel like the profit will be greater without kinect at $400 than having kinect at $500. But that is just IMO.

If it honestly is $200 (it would have to be for that developer to be correct), I simply cannot grasp Microsoft making the console for <$250. The articles I'm reading indicate the console itself costs more like $332 to make, an additional $15 for the controller, and $124 for everything else (including Kinect). The article then goes on to say of that $124, $25 goes towards the power supply, $10 to other box contents, and $14 to assemble. So that leaves $75 for Kinect if it is $471 in manufacturing costs alone (not even factoring in advertising, shipping, etc.). Considering Microsoft themselves stated they will break even and or make a slight profit on each console...it simply isn't reasonable to think the Kinect is costing them even $100.

Yeah they said they are making money from every console even with kinect bundled at $500 so why wouldn't they be making money now that it is cheaper and kinect is removed?

Because they are lowering the price by $100 when Kinect wasn't costing even $100 to produce.

Thats why i still think they will make a profit @ $400



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endimion on 08 June 2014

Pretty sure he is talking about revenue loss or maybe profit loss but not cost...



endimion on 08 June 2014
DeadBigfoot21 said:
Baalzamon said:
DeadBigfoot21 said:
Baalzamon said:
DeadBigfoot21 said:

I dont know but i feel like the profit will be greater without kinect at $400 than having kinect at $500. But that is just IMO.

If it honestly is $200 (it would have to be for that developer to be correct), I simply cannot grasp Microsoft making the console for



endimion on 08 June 2014

^lol redo your math
with kinect=selling price-production cost=500-470??=30
without kinect=400-400=0

if you lower your selling price by a higher value than you lower your production cost... You are making less profit if any...



Dr.Henry_Killinger on 08 June 2014

I'm having trouble telling the difference between the MS that drops the Kinect so it can afford a price drop, and the MS that can afford a billion dollar loss.



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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whatever on 08 June 2014
steverhcp02 said:
whatever said:

I wasn't defending Pachter or stating I agreed with him.  You and the previous poster were stating you were "confused" and "didn't understand" the article.   The fact that you even felt the need to state that "It most certainly has NOT cost MSFT 1 billion dollars LTD so it cannot be up to now that hes referring to." doesn't give me much hope for you 2 year old.

Except we have financial reports that show the One has not "cost them 1 billion dollars". So I am able to say it most certainly has not cost them that much. It is different for someone to say that their decisions 6 months into a ocnsole will end up costing them 1 billion dollars in lost profit because it literally impossible to know that.

And also i dont have a two year old, i was using an exagerated example with a 2 year old niece, but your attempt to discredit my assumed parenting skills has earned you a nice shiny report.

Nice to see that you can dish it out but you can't take it.  At least I know not to deal with you in the future.



steverhcp02 on 08 June 2014
whatever said:

Nice to see that you can dish it out but you can't take it.  At least I know not to deal with you in the future..

I suggest you read my posts again as you apparently misread them. I wasnt "dishing anything out" I was commenting on Pachter and his horrible estimate/prediction/reasoning for this claim and you insulted me personally. I made condescending comments regarding Pachter and his estimates and said nothing toward you and even had my comments been directed at you they werent attacks on you personally the way you did to me.

 On topic. Lets also not forget that the One is selling at would be record numbers if not for the PS4 so this idea of "losing potential profit" that Pachter is using is in and of itself flawed because hes just extrapolating One sales to the PS4 as if they exist in a vacuum. To lose out on potential profit he must have a crystal ball that tells him the One would have sold an extra 2 million had MSFT made different decisions, which he obviously cant know which makes this claim silly. He has no idea how many more consoles MSFT would have sold without Kinect, or any decisions being differently, let alone be able to pinpoint 2 million.

He is an amateur. The same way as people on this site predict outlandish things in a bubble without any thought, rationale or logic. People claim games are successes or failures based on number of copies sold or meta scores without considering dev cost, staffing, dev time, DLC work, office space many things that go into a game being profitable and not just sheer totals. This is why Pachter fails. He makes similar estimates and comments on complex things in rudimentary terms.




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