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Forums - Microsoft - 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
Landguy on 23 January 2015
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. Because the general market is paying more, doesn't mean that M$ didn't lock in or even get a better deal
2.) The "math" does not include shipping Tell us how much that is?
3.) The "math" does not include packaging Tell US how much that is?
4.) The "math" doe not include retailer cuts Retailers do get about $5 for every console sold...
5.) The "math" does not factor warranty costs What amount is that?
6.) The "math" does not factor returns What # is that?

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

its obvious from your various posts, you are now the official "DDR3 is more expensive" guy.  You have beat that dead.  See Bold above^^^

Point is, these arguments are based on guesstimates of what the cost to manufacture, package,ship, advertise, warranty.  How can we really know?  So, you guess one number and they guess another.  You have to just accept that there is no "winner" in these arguments.



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KungKras on 23 January 2015

Did the Xbone suceed in what Microsoft built it to do?



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IFireflyl on 23 January 2015
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.


My math in my previous post was fine. Estimated loss for the first 14 months of the Xbox One was $55,000,000. Estimated loss for the first 14 months of the Xbox 360 was $559,000,000. Those numbers were just including the console costs. You need to read. I didn't include any of those factors you mentioned into the cost of either system. You don't know those factors. You're just trying to be right, but you aren't.



 

Sharpryno on 23 January 2015
KungKras said:
Did the Xbone suceed in what Microsoft built it to do?


Even if it did not, it does not necessarily make it a failure. 



sales2099 on 23 January 2015

If X1 is a failure, then I shudder to think what WiiU is....



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Protendo on 23 January 2015
Landguy said:

its obvious from your various posts, you are now the official "DDR3 is more expensive" guy.  You have beat that dead.  See Bold above^^^

Point is, these arguments are based on guesstimates of what the cost to manufacture, package,ship, advertise, warranty.  How can we really know?  So, you guess one number and they guess another.  You have to just accept that there is no "winner" in these arguments.

I agree. Only the number he is using is being used out out of context. The original number didn't include those fees which are including to calculate profit/unit. The original number wasn't a measure of profit. The $396 was just an estimate for the cost to make and produce the system itself. So the math is invalid. You can't use numbers for manufacturing costs and use that as profit. There is a lot more to profit than manufacturing costs alone. He's taking other sources and using the information out of context.

Quoting:

The total cost of the Xbox One to make and produce is $471. By comparison, it's $90 more than the PlayStation 4, which totals $381 in production costs. The Xbox One's Kinect carries a $75 price tag of production, not nearly at the $100 mark estimated by gamers, but it's close enough.

Sharpryno said:

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.

 

DDR3 is now a legacy technology. When technology becomes legacy, prices start increasing instead of decreasing. The other factors you mention are things that just hiked the price up quicker than we typically see.



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KazumaKiryu on 23 January 2015

many big japanese games (dragon quest heroes, persona 5, one piece pirate warriors 3, god eater 2, next tales of-game, next level 5-game, ect) coming only for PS4 and not for X1. No exclusiv JRPG. Street Fighter 5 only for ps4 and i think, many games in the future too.
The sales in japan are dead, first xbox > X1 lifetime.

And the ps4 has the better und stronger hardware. sales are better too. And the software-LineUp 2015 is not so good by xboxone. the first quarter is terrible.
Personally, i think: Yes, the Xboxone is a flop. I have a 360 and love this old console, but i will not buy a x1 in the future or in my lifetime.



Qwark on 23 January 2015

Was the Xbox 360 a failure for not competing with the Wii the first four years? No it wasn't not being first doesn't equate failure.



Please excuse my (probally) poor grammar

Qwark on 23 January 2015
sales2099 said:
If X1 is a failure, then I shudder to think what WiiU is....


An abomination I guess XD



Please excuse my (probally) poor grammar

Landguy on 23 January 2015
Protendo said:
Landguy said:

its obvious from your various posts, you are now the official "DDR3 is more expensive" guy.  You have beat that dead.  See Bold above^^^

Point is, these arguments are based on guesstimates of what the cost to manufacture, package,ship, advertise, warranty.  How can we really know?  So, you guess one number and they guess another.  You have to just accept that there is no "winner" in these arguments.

I agree.  Only the number he is using is being used out out of context.  The original number didn't include those fees which are including to calculate profit/unit.  The original number wasn't a measure of profit.  The $396 was just an estimate for the cost to make and produce the system itself.  So the math is invalid.  You can't use numbers for manufacturing costs and use that as profit.  There is a lot more to profit than manufacturing costs alone.  He's taking other sources and using the information out of context.

Quoting:

The total cost of the Xbox One to make and produce is $471. By comparison, it's $90 more than the PlayStation 4, which totals $381 in production costs. The Xbox One's Kinect carries a $75 price tag of production, not nearly at the $100 mark estimated by gamers, but it's close enough.

The problem is that your quoting a source that itself is a guesstimate.  Either way, that info is well over a year old.  I do agree that the match being used on all ends is pretty bad.  But, even if you aor me sat down and put enough time into making a more accurate depiction of costs, we have to use a number of guesses to do so.  That's the most annoying thing about these discussions, nobody is really right or wrong.  It just comes down to what they think.



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