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

MoHasanie on 13 December 2014
jlmurph2 said:

This is the line I saw that made me think you meant both cost $80 each. Why would you say $329 - $60 - $60 if you know Unity and Black Flag would never be that much for a publisher's cost?

Ohh, I was talking about the free game promotion with the AC Unity bundle. Many stores on black friday were offering a free game worth $60 on top of the AC Unity bundle, all for $329. 



    

NNID: FrequentFlyer54

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MoHasanie on 13 December 2014
mii-gamer said:
MoHasanie said:
mii-gamer said:
That's not much at all, assuming that the maths is correct. Kinda wish that Nintendo dropped the price for the Wii U

Maybe they overestimated the effect of Smash Bros. on sales. 


I suspect so. It happened last year with 3D World. Or they just want to maximize profit. Either way with the money they make they should consider making some worthwhile investments that sets themselves stronger in the future

Yeah, I think they thought that being the cheapest console on the market should be enough to boost sales. So the X1 price cut might have caught them by surprise. 

Well, Nintendo never learns. They are just too stubborn to change their ways. 



    

NNID: FrequentFlyer54

jlmurph2 on 13 December 2014
Egann said:
The article is almost certainly a significant underestimate. It only goes based on MSRP and cost of goods sold for Microsoft, but in reality Microsoft is not a retail vendor, and no vendor would sell someone else's loss-leader product at a loss themselves. Shipping and inventory aren't cheap expenses.

If the loss is $60 million based on hardware, the real loss is probably close to $100 million. As there was an article a few months ago saying the X1 had lost $400 million before and during launch, which means the X1 is now an even half-billion dollars in the red.

Not as bad as the Surface's $900 million dollars in the red, but it's bad.


Yup, disregard all the games, Xbox Live memberships, controllers, headsets, adapters, plug n play kits and even Xbox 360s that have been sold since Xbox One's launch. Lets just put Xbox half a billion in the red.



S.T.A.G.E. on 13 December 2014

The cost doesn't matter. The perception is all MS needs to keep going. They'll take the risk until it is no longer affordable as long as people perceive them as winning in any capacity.



jlmurph2 on 13 December 2014
MoHasanie said:
jlmurph2 said:

This is the line I saw that made me think you meant both cost $80 each. Why would you say $329 - $60 - $60 if you know Unity and Black Flag would never be that much for a publisher's cost?

Ohh, I was talking about the free game promotion with the AC Unity bundle. Many stores on black friday were offering a free game worth $60 on top of the AC Unity bundle, all for $329. 

Oh, then that's the retailer paying that, not MS. If a retailer is giving out a free game or a gift card then they are trying to get the consumer to buy from their store.



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MoHasanie on 13 December 2014
jlmurph2 said:
MoHasanie said:
jlmurph2 said:

This is the line I saw that made me think you meant both cost $80 each. Why would you say $329 - $60 - $60 if you know Unity and Black Flag would never be that much for a publisher's cost?

Ohh, I was talking about the free game promotion with the AC Unity bundle. Many stores on black friday were offering a free game worth $60 on top of the AC Unity bundle, all for $329. 

Oh, then that's the retailer paying that, not MS. If a retailer is giving out a free game or a gift card then they are trying to get the consumer to buy from their store.

But that's what I don't get. Why would every major retailer accept such a big loss? The MS store had the offer too. 



    

NNID: FrequentFlyer54

jlmurph2 on 13 December 2014
MoHasanie said:
jlmurph2 said:
MoHasanie said:

Ohh, I was talking about the free game promotion with the AC Unity bundle. Many stores on black friday were offering a free game worth $60 on top of the AC Unity bundle, all for $329. 

Oh, then that's the retailer paying that, not MS. If a retailer is giving out a free game or a gift card then they are trying to get the consumer to buy from their store.

But that's what I don't get. Why would every major retailer accept such a big loss? The MS store had the offer too. 

Because the Xbox One was the most desired console for Black Friday. Wouldn't you want people doing their Black Friday shopping at your store?



squall747 on 13 December 2014

These console makers profit from their games and accessories their isn't much money in selling the systems themselves. The losses can easily be made up but you gotta put the system in their home's first. This article seems rather pointless. Maybe someone is salty as people would say.



MoHasanie on 13 December 2014
jlmurph2 said:

Because the Xbox One was the most desired console for Black Friday. Wouldn't you want people doing their Black Friday shopping at your store?

Not if I'm losing money on the device. Losing $60 through a free game promotion is a significant amount. 



    

NNID: FrequentFlyer54

jlmurph2 on 13 December 2014
MoHasanie said:
jlmurph2 said:

Because the Xbox One was the most desired console for Black Friday. Wouldn't you want people doing their Black Friday shopping at your store?

Not if I'm losing money on the device. Losing $60 through a free game promotion is a significant amount. 


If that's how you think it is then why would black friday be a thing? Its a full weekend of nothing but crazy deals. Trust me, there's profit.