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

Yeah but they were selling their console for $330 and $350, so double or triple that number.



Prediction for console Lifetime sales:

Wii:100-120 million, PS3:80-110 million, 360:70-100 million

[Prediction Made 11/5/2009]

3DS: 65m, PSV: 22m, Wii U: 18-22m, PS4: 80-120m, X1: 35-55m

I gauruntee the PS5 comes out after only 5-6 years after the launch of the PS4.

[Prediction Made 6/18/2014]

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Pointless if r&d marketing and all other cost are not factored in, just hypothetical numbers being calculated. No real world application really. For nov and BF alone if actual costs and contracts are not know its all just a bad guess.

It did cost them dearly, for all of MS $ they have a limit on how much they are willing to spend on the xbox. If they were really willing to waste $ to win they would have launched at a lower price. Its still a business and its run to make profits, if not it could be shuttered span of or who knows.

Many call it a win but they are still down by a lot in NA so what win really and have just shows how financially unviable their product is. Potential brand damage in all markets that had not received price cut and bundles. It took a lot to do it they blew plenty on now and have little for early 2015.   Its also damming and rather obvious why sony sat by and did nothing, MS current path is unsustainable long term.



This article is wrong. I doubt it still costs $400 to manufacture. And that $63m figure doesn't include the cost of AC Unity. They still have pay Ubisoft for every copy of Unity and Black Flag.

On Black Friday the losses would have been big. When you consider the fact they were selling the Unity bundle for $329, and offering a free $60 game with it, they are technically selling the console for $209 ($329 - $60 - $60(assuming they pay Ubisoft $60 for both Unity and Blag Flag). So there is a large amount of lost revenue. 



    

NNID: FrequentFlyer54

I am happy as long as the user base expands so we have more people to play with online. MS are way to focused on being a market leader, but the good thing is that we gamers get alot of great software :). And i was one of those that bought X1 at full price with Kinect, and couldn't be happier. Why would I be mad that they have reduced the price when that is what companies always do?



MoHasanie said:

This article is wrong. I doubt it still costs $400 to manufacture. And that $63m figure doesn't include the cost of AC Unity. They still have pay Ubisoft for every copy of Unity and Black Flag.

On Black Friday the losses would have been big. When you consider the fact they were selling the Unity bundle for $329, and offering a free $60 game with it, they are technically selling the console for $209 ($329 - $60 - $60(assuming they pay Ubisoft $60 for both Unity and Blag Flag). So there is a large amount of lost revenue. 


There's no way they paid ubisoft $60 each for unity and black flag



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man-bear-pig said:
MoHasanie said:

This article is wrong. I doubt it still costs $400 to manufacture. And that $63m figure doesn't include the cost of AC Unity. They still have pay Ubisoft for every copy of Unity and Black Flag.

On Black Friday the losses would have been big. When you consider the fact they were selling the Unity bundle for $329, and offering a free $60 game with it, they are technically selling the console for $209 ($329 - $60 - $60(assuming they pay Ubisoft $60 for both Unity and Blag Flag). So there is a large amount of lost revenue. 


There's no way they paid ubisoft $60 each for unity and black flag

So how much do you think they paid? At retail both cost $80. 



    

NNID: FrequentFlyer54

MoHasanie said:
man-bear-pig said:
MoHasanie said:

This article is wrong. I doubt it still costs $400 to manufacture. And that $63m figure doesn't include the cost of AC Unity. They still have pay Ubisoft for every copy of Unity and Black Flag.

On Black Friday the losses would have been big. When you consider the fact they were selling the Unity bundle for $329, and offering a free $60 game with it, they are technically selling the console for $209 ($329 - $60 - $60(assuming they pay Ubisoft $60 for both Unity and Blag Flag). So there is a large amount of lost revenue. 


There's no way they paid ubisoft $60 each for unity and black flag

So how much do you think they paid? At retail both cost $80. 

C'mon man you should know better. This was discussed millions of times here on VGC.



So if MS lost this much money per console. How much did Sony lose per console. It was stated numerous times that the best selling next gen systems for both were the ones with bundles. even the destiny bundle was being sold for $400 with an extra game.

It's easy to say both sold at a loss, but by building up the user base, profits come back in the form of game, and online subscriptions.



MoHasanie said:
man-bear-pig said:
MoHasanie said:

This article is wrong. I doubt it still costs $400 to manufacture. And that $63m figure doesn't include the cost of AC Unity. They still have pay Ubisoft for every copy of Unity and Black Flag.

On Black Friday the losses would have been big. When you consider the fact they were selling the Unity bundle for $329, and offering a free $60 game with it, they are technically selling the console for $209 ($329 - $60 - $60(assuming they pay Ubisoft $60 for both Unity and Blag Flag). So there is a large amount of lost revenue. 


There's no way they paid ubisoft $60 each for unity and black flag

So how much do you think they paid? At retail both cost $80. 


..what? 



Looking at it if sony had done a $350 GTAV bundle sale just for black friday it would have been a decent long run pay off and not too much damage to their profits, i'd say it was a missed opportunity