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Forums - Microsoft Discussion - Xbox ONE for $199 at Best Buy (trade in offer)

Kerotan said:

 

no the overall aim of the gaming division. But if there is something in there like the X1 giving huge loses it's not good for it no matter what you say and they won't be happy. BTW my common sense is telling me MS has lost money on the X1 product from the day they started researching it's design. And with the way sales have gone WW and the drastic fire sale type price cuts i reckon it will be many a year before they re coup the costs. 


and all that is just based on ur knowledge of what?
and what about sony and the ps4? they made a profit since day one?

yes loosing money sucks for every company. thats the reason, why ms did not cut the xb1 price by 100 bucks but released a kinectless version
and even if they loose money on an xb1 sold at 349. its not much. its not enough to make an overall loss for the xbox divison. not like the years of the original xbox and the early years of xb360.
and yes r&d costs money for all prodcuts. but that are costs, they already accounted in theire earnings years ago
did u notice the increas in costs for xb the last quarter? that was due to the launch in more territories.
the 50bucks pricecut /pro will account in this quarter.

 

xbox is profitable since years now. and that wont change in the near future
if u want to have a look urself, feel free:
http://www.microsoft.com/investor/default.aspx



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prinz_valium said:
Kerotan said:

 

no the overall aim of the gaming division. But if there is something in there like the X1 giving huge loses it's not good for it no matter what you say and they won't be happy. BTW my common sense is telling me MS has lost money on the X1 product from the day they started researching it's design. And with the way sales have gone WW and the drastic fire sale type price cuts i reckon it will be many a year before they re coup the costs. 


and all that is just based on ur knowledge of what?
and what about sony and the ps4? they made a profit since day one?

yes loosing money sucks for every company. thats the reason, why ms did not cut the xb1 price by 100 bucks but released a kinectless version
and even if they loose money on an xb1 sold at 349. its not much. its not enough to make an overall loss for the xbox divison. not like the years of the original xbox and the early years of xb360.
and yes r&d costs money for all prodcuts. but that are costs, they already accounted in theire earnings years ago
did u notice the increas in costs for xb the last quarter? that was due to the launch in more territories.
the 50bucks pricecut /pro will account in this quarter.

 

xbox is profitable since years now. and that wont change in the near future
if u want to have a look urself, feel free:
http://www.microsoft.com/investor/default.aspx


the 360 is making it profitable. what part of the X1 only do you not understand? 

also you ignore the huge sums of money MS spend on advertising, buying exlusive games/dlc. for example COD, AC, Fifa, Madden, SO, Titanfall, The Division, Witcher etc. That all ads up. And some of the biggest titles on the system were practically given aay for free to try and counter the PS4. Destiny and Titanfall. 

 

ALl those ad to their loses and to recoup them they need to be selling more X1's at a higher price. The price of buying exclusive games and dlc along with advertising will also have gone up big time since the PS4 is dominating. The return for it has also dimished. Big examples being Fifa and Madden. 



Kerotan said:
prinz_valium said:
Kerotan said:

 

no the overall aim of the gaming division. But if there is something in there like the X1 giving huge loses it's not good for it no matter what you say and they won't be happy. BTW my common sense is telling me MS has lost money on the X1 product from the day they started researching it's design. And with the way sales have gone WW and the drastic fire sale type price cuts i reckon it will be many a year before they re coup the costs. 


and all that is just based on ur knowledge of what?
and what about sony and the ps4? they made a profit since day one?

yes loosing money sucks for every company. thats the reason, why ms did not cut the xb1 price by 100 bucks but released a kinectless version
and even if they loose money on an xb1 sold at 349. its not much. its not enough to make an overall loss for the xbox divison. not like the years of the original xbox and the early years of xb360.
and yes r&d costs money for all prodcuts. but that are costs, they already accounted in theire earnings years ago
did u notice the increas in costs for xb the last quarter? that was due to the launch in more territories.
the 50bucks pricecut /pro will account in this quarter.

 

xbox is profitable since years now. and that wont change in the near future
if u want to have a look urself, feel free:
http://www.microsoft.com/investor/default.aspx


the 360 is making it profitable. what part of the X1 only do you not understand? 

also you ignore the huge sums of money MS spend on advertising, buying exlusive games/dlc. for example COD, AC, Fifa, Madden, SO, Titanfall, The Division, Witcher etc. That all ads up. And some of the biggest titles on the system were practically given aay for free to try and counter the PS4. Destiny and Titanfall. 

 

ALl those ad to their loses and to recoup them they need to be selling more X1's at a higher price. The price of buying exclusive games and dlc along with advertising will also have gone up big time since the PS4 is dominating. The return for it has also dimished. Big examples being Fifa and Madden. 

u know how many x3b60 the ship compared to the xb1?
dont think so

otherwise u would not say such a stupid thing.
they ship 1/3 max

so to make up 1 buck xb1 loss per unit, the xb360 need to make 4 bucks per unit to get a flat zero. 5 to do a marginal profit.
but thats just theoretical numbers. if one xb1 makes 50 bucks loss, one xb360 has to make 250 bucks profit
thats the reason its stupid to say xb360 is making it profitable.

 

ms makes profits with games, xblive, hardware and accessories.
any ms spend money on r&d, advertising and all that other stuff. like anyone else.
thats why they dont care if the xb1 hardware make a small loss (if it does. thats not even given). its covered by the whole division.
u just cant put all the bad things that costs money on the xb1, but all the good that makes money only at the x360



I don't know why there is so many critiques. I applaud this action by a company that appears to be serious to stay competitive and is willing to gamble. $200 dollars seems overly fair for the console, it's more than Sony has done to get me to upgrade from my PS3.

I may just purchase it a 8th gen console this year.

-edited for grammar



prinz_valium said:

ms makes profits with games, xblive, hardware and accessories.


you just spelt out what i'm trying to tell you. the 360 makes the profit. Most of the XBL members are on the 360, the 360 sells way more games and the 360 sells more accessories. On top of all that it's sold for a tidy profit. 

i'm off to bed but hopefully you've seen the light. 



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prinz_valium said:
Kerotan said:
prinz_valium said:
Kerotan said:

 

no the overall aim of the gaming division. But if there is something in there like the X1 giving huge loses it's not good for it no matter what you say and they won't be happy. BTW my common sense is telling me MS has lost money on the X1 product from the day they started researching it's design. And with the way sales have gone WW and the drastic fire sale type price cuts i reckon it will be many a year before they re coup the costs. 


and all that is just based on ur knowledge of what?
and what about sony and the ps4? they made a profit since day one?

yes loosing money sucks for every company. thats the reason, why ms did not cut the xb1 price by 100 bucks but released a kinectless version
and even if they loose money on an xb1 sold at 349. its not much. its not enough to make an overall loss for the xbox divison. not like the years of the original xbox and the early years of xb360.
and yes r&d costs money for all prodcuts. but that are costs, they already accounted in theire earnings years ago
did u notice the increas in costs for xb the last quarter? that was due to the launch in more territories.
the 50bucks pricecut /pro will account in this quarter.

 

xbox is profitable since years now. and that wont change in the near future
if u want to have a look urself, feel free:
http://www.microsoft.com/investor/default.aspx


the 360 is making it profitable. what part of the X1 only do you not understand? 

also you ignore the huge sums of money MS spend on advertising, buying exlusive games/dlc. for example COD, AC, Fifa, Madden, SO, Titanfall, The Division, Witcher etc. That all ads up. And some of the biggest titles on the system were practically given aay for free to try and counter the PS4. Destiny and Titanfall. 

 

ALl those ad to their loses and to recoup them they need to be selling more X1's at a higher price. The price of buying exclusive games and dlc along with advertising will also have gone up big time since the PS4 is dominating. The return for it has also dimished. Big examples being Fifa and Madden. 

u know how many x3b60 the ship compared to the xb1?
dont think so

otherwise u would not say such a stupid thing.
they ship 1/3 max

so to make up 1 buck xb1 loss per unit, the xb360 need to make 4 bucks per unit to get a flat zero. 5 to do a marginal profit.
but thats just theoretical numbers. if one xb1 makes 50 bucks loss, one xb360 has to make 250 bucks profit
thats the reason its stupid to say xb360 is making it profitable.

What the?  You do realize they have sold 83+ million XB360s, and those sell a lot of games.  It's not only about the now selling XB360s.  The XB360 is still selling 3 times more software than the XB1, and probably has 10+ times more people paying for XBL Gold.



My 8th gen collection

Kerotan said:
prinz_valium said:

ms makes profits with games, xblive, hardware and accessories.


you just spelt out what i'm trying to tell you. the 360 makes the profit. Most of the XBL members are on the 360, the 360 sells way more games and the 360 sells more accessories. On top of all that it's sold for a tidy profit. 

i'm off to bed but hopefully you've seen the light. 


em no. thats just wrong.
why should the xb360 sell more controllers as example than the xb1, while the console itself sold just 1/3 of xb1 numbers? sure. all 80m xb360 owner out thre just bought a controller for the x360 last quarter. but no new xb1 owner, who need them more, because they dont already own x controller and accessoires.

most xbl member are on 360, yes. but old subscriptions doent make money for ms right now. thats already accounted in previous earnings.
only if u renew right now its making money for ms. and no1 knows if they do it for the xb360 or xb1. because its one subscription for both. and again. thats why its stupid to think its only the x360 that brings in the profits.

 

the only point ur being right, is the games.
yes they sell more games on the xb360 right now. but even that will change this quarter. just look a crossgen sales. more units on current gen than last gen already.
they only sell more overall 360 games, because of the big libary. but as i said. that will change this quarter



Kerotan said:
prinz_valium said:
Kerotan said:
prinz_valium said:
Kerotan said:
toastboy44562 said:
Xbox One sure is selling like hotcakes right about now


Soon it will be cheaper then hotcakes and will be outselling them too (for a few weeks). 

EDIT: Anyone who doesn't think MS is not footing the bill for most if not all of this deal is deluded! THe potential profit of the Xbox division is dropping by the day. 


thy already said, that they expect lower revenue for this holiday quarter compared to last year due to new priced skus. 3 - 3.5 billion, if im right
but ofc. last year they sold 3.9m xbox one at 499

 

they will still make a operating profit

in the division yes but in terms of xboxs bringing in money or losing money they will be losing money. 

u dont know that, or do u work at microsoft?
and the only care about the overall xbox divison. and that divison is generating profits

no the overall aim of the gaming division. But if there is something in there like the X1 giving huge loses it's not good for it no matter what you say and they won't be happy. BTW my common sense is telling me MS has lost money on the X1 product from the day they started researching it's design. And with the way sales have gone WW and the drastic fire sale type price cuts i reckon it will be many a year before they re coup the costs. 


That really all depends on how much they care about losing.  The PS3 overtook the 360, but it required an enourmous financial undertaking that took the entire generation to (probably) recoup the losses.

IMO the X1 is in FAR worse shape than the PS3 was, and so (assuming PS4 still wins November) I doubt MS would want to bear that kind of burden right around the time they are shelving the Surface line.  How would it look to investors if both Surface an Xbox were canceled around the same time...



ICStats said:

 

What the?  You do realize they have sold 83+ million XB360s, and those sell a lot of games.  It's not only about the now selling XB360s.  The XB360 is still selling 3 times more software than the XB1, and probably has 10+ times more people paying for XBL Gold.


u dont get it, too?
10m x360 owner renew theire xblive subscription so they can still play online on theire last gen console?
or did the do it, so they can play on theire new gen console?

hardcoregamers (the ones that have live for sure) move faster to the new gen. and many will follow soon.

 

and about the games: just look at some big new game release weeks:

Global Software by Platform

PlatformWeekly (change)Total
PS4 2,770,860 (+459%) 32,447,769
XOne 1,503,994 (+409%) 19,283,138
PS3 1,280,073 (+46%) 828,597,175
3DS 1,279,264 (+228%) 146,025,925
X360 1,151,733 (+91%) 871,752,696

 

xbone already selling more than x360
in drough weeks, x360 is selling more, because of the bigger library. but that will change soon and very fast



Good promotion for BB. They lose maybe $100 on Xbone hardware but make up double that selling the used hardware, not to mention whatever they make back on product people buy alongside the Xbone/used hardware.