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Forums - Microsoft Discussion - Is the Xbox One a failure?

 

Is XB1 a failure?

Yes! 615 40.51%
 
No! 711 46.84%
 
Gimme dem numbers! 68 4.48%
 
I pity Wii U :( 121 7.97%
 
Total:1,515
alabtrosMyster said:
DanneSandin said:



XB1 is constantly outselling its predecessor, the X360, but can't compete with PS4. Does that mean it's a success or a failure?


I take offence with this statement, in the end it sold more than its predecessor, but until October all reasonable expectations was that both console's first year would be more or less equal... now after price drops and a few bundles + in store gift cards people bought in the XB1, which is something the XB360 did not have to do as far as I remember.

Why? I'm genuinly curious. I don't get it.



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Judging by sales of 2014 up until holiday, yes.



The only thing that defines if it's a success or failure is the existence of profit for MS, too bad such information is not out.



Juma009 said:
The only thing that defines if it's a success or failure is the existence of profit for MS, too bad such information is not out.


You have the math I did in my previous post. The Xbox One through December 2014 cost Microsoft approximately $55 million. Microsoft has over 46 million Xbox Live Gold members. At $50/year that's approximately $2,300,000,000 they're making every year. The console itself isn't supposed to profit. None of the Xbox or Playstation consoles ever made a profit. So the math is out. The Xbox One is not a failure. It has surpassed the Xbox 360 in sales. It has lost less money than the Xbox 360. They still have billions in revenue coming in from Xbox Live Gold. The Xbox One is, empirically, not a failure.



 

Its doing very well, selling 11m in your first 13 months is setting you up for 80m sales in the longer run. Will it peak as high as 360? I'm not sure but its sure no failure.

The only downplaying should be focused on what MS intended to begin with and what has since become of the console. Their ambitions of what it was supposed to be are all but dead, so I guess in a spiritual sense its a failure. Financially it should be more profitable then the 360 which had 3 years in the red, I suspect X1 will be profitable before the end of this year with its solid but not so cutting edge components.



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IFireflyl said:
Juma009 said:
The only thing that defines if it's a success or failure is the existence of profit for MS, too bad such information is not out.


You have the math I did in my previous post. The Xbox One through December 2014 cost Microsoft approximately $55 million. Microsoft has over 46 million Xbox Live Gold members. At $50/year that's approximately $2,300,000,000 they're making every year. The console itself isn't supposed to profit. None of the Xbox or Playstation consoles ever made a profit. So the math is out. The Xbox One is not a failure. It has surpassed the Xbox 360 in sales. It has lost less money than the Xbox 360. They still have billions in revenue coming in from Xbox Live Gold. The Xbox One is, empirically, not a failure.

Your math is still OK, they are making a ton on Gold subs. However, that number is the combination of Gold and Silver (free) accounts.

Realistically, their Gold subs are around 50-60% of that number (MS very rarely discloses that number separately).



Burek said:
IFireflyl said:
Juma009 said:
The only thing that defines if it's a success or failure is the existence of profit for MS, too bad such information is not out.


You have the math I did in my previous post. The Xbox One through December 2014 cost Microsoft approximately $55 million. Microsoft has over 46 million Xbox Live Gold members. At $50/year that's approximately $2,300,000,000 they're making every year. The console itself isn't supposed to profit. None of the Xbox or Playstation consoles ever made a profit. So the math is out. The Xbox One is not a failure. It has surpassed the Xbox 360 in sales. It has lost less money than the Xbox 360. They still have billions in revenue coming in from Xbox Live Gold. The Xbox One is, empirically, not a failure.

Your math is still OK, they are making a ton on Gold subs. However, that number is the combination of Gold and Silver (free) accounts.

Realistically, their Gold subs are around 50-60% of that number (MS very rarely discloses that number separately).


That is a valid point. Thank you for that. Let's low-ball it, and say they have 23 million Xbox Live Gold members (50% of the 46 million). With 23 million Xbox Live Gold members at $60/year (I just realized it was up from $50/year) that is $1,380,000,000. Again, that is me rounding down/low-balling it. So in the first 14 months Microsoft lost approximately $55 million on the Xbox One (which was a substantially smaller loss than in the first 14 months they sold the Xbox 360), and they brought in at least $1.38 billion. That's still a win.



 

IFireflyl said:
Juma009 said:
The only thing that defines if it's a success or failure is the existence of profit for MS, too bad such information is not out.


You have the math I did in my previous post. The Xbox One through December 2014 cost Microsoft approximately $55 million. Microsoft has over 46 million Xbox Live Gold members. At $50/year that's approximately $2,300,000,000 they're making every year. The console itself isn't supposed to profit. None of the Xbox or Playstation consoles ever made a profit. So the math is out. The Xbox One is not a failure. It has surpassed the Xbox 360 in sales. It has lost less money than the Xbox 360. They still have billions in revenue coming in from Xbox Live Gold. The Xbox One is, empirically, not a failure.

 

Your "math" is invalid.  In order to calculate the profits/unit for the Xbox One you have to consider the following: 

1.) The "math" does not account for the fact DDR3 continuous price increases since launch.
2.) The "math" does not include shipping
3.) The "math" does not include packaging
4.) The "math" does not include retailer cuts
5.) The "math" does not factor warranty costs
6.) The "math" does not factor returns

 

If you’re going to state things as facts, at least try to be accurate.  If you are talking profit/unit these things must be factored in.  I'm not even taking things like the $100 million dollar NFL deal into consideration.  To help you out we'll consider all those failures as a sunk cost.  Then when you take advertising, marketing, exclusive deals, and more into consideration it becomes apparent that Xbox Division is losing money.



Just because the PS4 has been extremely successful doesn't make the XB1 a failure.



 

The PS5 Exists. 


Protendo said:
IFireflyl said:
Juma009 said:
The only thing that defines if it's a success or failure is the existence of profit for MS, too bad such information is not out.


You have the math I did in my previous post. The Xbox One through December 2014 cost Microsoft approximately $55 million. Microsoft has over 46 million Xbox Live Gold members. At $50/year that's approximately $2,300,000,000 they're making every year. The console itself isn't supposed to profit. None of the Xbox or Playstation consoles ever made a profit. So the math is out. The Xbox One is not a failure. It has surpassed the Xbox 360 in sales. It has lost less money than the Xbox 360. They still have billions in revenue coming in from Xbox Live Gold. The Xbox One is, empirically, not a failure.


Your "math" is invalid.  In order to calculate the profits/unit for the  Xbox One you have to consider the following: 

1.) The "math" does not account for the fact that price of DDR3 continually becomes more expensive as time goes on, the Xbox One will cost more now as a result.
2.) The "math" does not include shipping
3.) The "math" does not include packaging
4.) The "math" doe not include retailer cuts
5.) The "math" does not factor warranty costs
6.) The "math" does not factor returns

If your going to state things as facts, at least try to be accurate.  I'm not even taking things like the $100 million dollar NFL deal into consideration.  To help you out we'll consider all those failures as a sunk cost.

Ram prices have gone up for other reasons; DDR3 has nothing to do with that.  But they've barely rised.  Still much cheaper now than it was a few years ago.

You are basically implying the XBO is a failure, which simply is not true.   Your list you added up is minimal when talking millions of $$$.  Not sure what your point was. 

Not directed at you, rather the poll:

People on this site really hate Xbox.  Oh well.