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

Forums - Gaming - The Xbox One beat the PS4 in November, but at what cost? We do the math

Gamz on 13 December 2014
Nate4Drake said:
Imaginedvl said:
Nate4Drake said:
RolStoppable said:
Money well spent on seeing the bitter tears flow.

I know you are kidding and nobody ever come into a business to lose money, not even the rich  MS. 

Wasting money and having a way lower profit because your product is far from doing as expected is never good, actually is very bad.  Now it's not fair to say MS was desperate, I agree, but calling 'victory' their Nov NPD is far from reality. My 2 cents.

Maketshare gain is the most important for MS now, not losing few dollars here and there to obtain it. This article and the calculation is all wrong as it does not consider the money those new Xbox owners will bring in not including the K factor too (friends buying because of friends having an Xbox One) :)

Anyway, how on earth can you judge better than Microsoft if they wasted money or not?

This is a victory for Microsoft at many level. Marketshare, stopping Sony's streak, big visibility in the medias, more Xbox One owners...

Losing few dollars ? Selling 1.4M consoles at those price ?  you guys must be very rich, more than MS...


In the span of a lifetime of a console it is nothing.  In gens past Sony and MS lost far, far more then that.  There's still plenty of room for Sony and MS to go lower. 



Around the Network
jlmurph2 on 13 December 2014
BraLoD said:
This Globally in the US way of thinking has to stop.
Say it won November in USA, because it didn't win a single week worldwide.

Sony made money all over the world.

Until we get monthly worldwide official numbers, you're going to have to deal with it. NPD is here to stay.



HoloDust on 13 December 2014
Gamz said:
BraLoD said:
This Globally in the US way of thinking has to stop.
Say it won November in USA, because it didn't win a single week worldwide.

Sony made money all over the world.

Sure, but I'd love to know how much software is sold compared to the US and UK.  I'm pretty sure it's a wide margain thus these two markets are huge!
it'

That's pretty much untrackable - lot of RoW market is buying games via Amazon's PS gift cards and using US accounts.

OT - no matter how much money MS initially lost cutting the price, it was a smart move.



gamingpotato7 on 13 December 2014

I truly fail to see how the XBox One beat PS4 in November like it says in the title. NPD? Sure, UK? Sure, rest of the freaking World? No. It is incredible the amount of egocentrism that exist in english speaking countries. They are just a part, an important part of the World but nonetheless just a part. Consoles now sell in numerous developing countries also like Brazil and even now China, and Europe is not only the UK. Every single week of November the PS4 beat the XBox One so in total, XBox One didn't beat the PS4. Sure it sold well, and it was a smart move by them because they can get the money back via other services, but let's not think that everything will change from now on. The PS4 has never had a price drop for example.



arcaneguyver on 13 December 2014

I was thinking about this last night - most of the losses will probably be covered by XBL subscriptions. 2014 still won't look pretty to the bean counters, but it should theoretically improve things for the brand in 2015.



Around the Network
iTechHeads on 13 December 2014
kowenicki said:

$63m, is that all?  

(the 'article' (blog) orginally did the math wrong... funny, they had it at $643m loss, no doubt they rushed the article out on the strength of this in full on excitement only to be corrected by a kid that can actually add up)

Ayhow, thats buttons. A fair few assumptions too that may or may not be correct.

Lets see how the accounts look for the quarter when they are released in January shall we.

But in the end... consoles have historically been loss leaders to sell games and other services. So whats new?

 

 

edit.  why did you cut out the funny kaz twitter? ...spoilsport.

Yeah, they always have. Of course the Big 3 would like to have a profit instead.

Microsoft can definitely take the hit and if November results are any indication of the results, Microsoft would probably do it again.



drdante on 13 December 2014

i thought manufacturing cost has been reduced in time?

and also, XB1 is cheaper to build than PS4 if excluding Kinect, right? Correct me if i'm wrong.



         

TiagoCosta on 13 December 2014

That's almost nothing, considering how they are making money with accessories/games/live/x360.



vivster on 13 December 2014

Shouldn't there be an article about how much Sony lost and will lose due to this win?



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

jlmurph2 on 13 December 2014

It seems some people have memory loss on Sony's quarterly loss posting. $63m is nothing compared to $1.2b. MS just bought Mojang for $2.5b and made that back in a snap. Do you think they care about $63m if they made it back before you even finished reading this?