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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
AlexJones on 26 January 2015
IFireflyl said:
AlexJones said:

The 360 never had insane firesales during its first year, nor did 360's sales drop-off at the end of its first holidays like the Xbone did.

There's enough reason to believe Xbone's sales are increadibly frontloaded. The only way Microsoft can maintain sales pace withthe 360 is if they continue taking a loss of $200+ per console, and I don't think Microsoft wants to do this for the rest of this generation. Eventually, Microsoft will not be able to use the "HIgher sales than 360 measured by release time", since the 360's sales skyrocketed once stock issues were cleared up while the Xbone has no stock issues. The 360 also got a good boost from kinect.

Either the Xbone will be discontinued shortly or Microsoft continues to lose billions per year on this console. It just insn't wise to invest in the Xbone.


Go re-read my other posts. You're touting incorrect information and calling it fact. I did the research. They aren't losing $200+ per console. They're losing roughly $46 per console (and losing less for the console with the Kinect built in), and this is after they cut the price to $350. The Xbox $360 was losing rougly $75 per console without it going on sale.


The Xbone costs around $420 to built according to rough breakdowns. DDR3 RAM prices probably increased BOM even more.

Microsoft sold the console at $320 during the holidays. $100 loss.

AC:U and AC:BF is $60 + $40. That's another $100 loss.

Include the reward/gift cards at many participating retailers and you're looking at a loss easily over $200.



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IFireflyl on 26 January 2015
AlexJones said:
IFireflyl said:
AlexJones said:

The 360 never had insane firesales during its first year, nor did 360's sales drop-off at the end of its first holidays like the Xbone did.

There's enough reason to believe Xbone's sales are increadibly frontloaded. The only way Microsoft can maintain sales pace withthe 360 is if they continue taking a loss of $200+ per console, and I don't think Microsoft wants to do this for the rest of this generation. Eventually, Microsoft will not be able to use the "HIgher sales than 360 measured by release time", since the 360's sales skyrocketed once stock issues were cleared up while the Xbone has no stock issues. The 360 also got a good boost from kinect.

Either the Xbone will be discontinued shortly or Microsoft continues to lose billions per year on this console. It just insn't wise to invest in the Xbone.


Go re-read my other posts. You're touting incorrect information and calling it fact. I did the research. They aren't losing $200+ per console. They're losing roughly $46 per console (and losing less for the console with the Kinect built in), and this is after they cut the price to $350. The Xbox $360 was losing rougly $75 per console without it going on sale.


The Xbone costs around $420 to built according to rough breakdowns. DDR3 RAM prices probably increased BOM even more.

Microsoft sold the console at $320 during the holidays. $100 loss.

AC:U and AC:BF is $60 + $40. That's another $100 loss.

Include the reward/gift cards at many participating retailers and you're looking at a loss easily over $200.


No offense, but this no longer became relevant when you said "probably". We're not including bundles because the 360, PS4, etc all have bundles, and we're not counting that for anyone. I'm talking pure console numbers versus pure console numbers. You don't have the facts for the other stuff you're arguing, so don't try to bring that into the mix unless you can (like I did) compare it to the Xbox 360. If you're going to play that game why not include the contests where Microsoft was giving away 360s before their launch.

P.S. I did some research, and all 10,000 Xbox 360's with Blue Dragon bundled with it were sold by October 19th, 2006 in Japan. And that's just one example of the Xbox 360 having bundles in the same timeframe I was including. And they were sold for around $250 each. That's a pretty substantial loss, much worse than anything the Xbox One has done.



 

jonnybmk on 26 January 2015
DanneSandin said:

Is the Xbox One a failure?

Yeah. Why?



DM235 on 26 January 2015
AlexJones said:
IFireflyl said:
AlexJones said:

The 360 never had insane firesales during its first year, nor did 360's sales drop-off at the end of its first holidays like the Xbone did.

There's enough reason to believe Xbone's sales are increadibly frontloaded. The only way Microsoft can maintain sales pace withthe 360 is if they continue taking a loss of $200+ per console, and I don't think Microsoft wants to do this for the rest of this generation. Eventually, Microsoft will not be able to use the "HIgher sales than 360 measured by release time", since the 360's sales skyrocketed once stock issues were cleared up while the Xbone has no stock issues. The 360 also got a good boost from kinect.

Either the Xbone will be discontinued shortly or Microsoft continues to lose billions per year on this console. It just insn't wise to invest in the Xbone.


Go re-read my other posts. You're touting incorrect information and calling it fact. I did the research. They aren't losing $200+ per console. They're losing roughly $46 per console (and losing less for the console with the Kinect built in), and this is after they cut the price to $350. The Xbox $360 was losing rougly $75 per console without it going on sale.


The Xbone costs around $420 to built according to rough breakdowns. DDR3 RAM prices probably increased BOM even more.

Microsoft sold the console at $320 during the holidays. $100 loss.

AC:U and AC:BF is $60 + $40. That's another $100 loss.

Include the reward/gift cards at many participating retailers and you're looking at a loss easily over $200.

http://press.ihs.com/press-release/design-supply-chain/microsoft-xbox-one-hardware-cost-comes-below-retail-price-ihs-tear

XBox One costs at launch were estimated to be about $396 ($471 less $75 for Kinect).  They are probably a little less now, as the costs of components typically go down each year.

AC:U and AC:BF would cost Microsoft a lot less than retail, as they don't have to pay themselves royalties, retailer margins, or even packaging, since the titles were just digital codes.  I think a high estimate would be $50 for both, although they most likely agreed to a lower price.

Retailers would do bundles are their own expense, so that would not affect Microsoft.

Given the estimates above, they were selling a $444 console for $330 (with some small retailer margin), so they were incurring a loss of about $100 (again, I think this would be a high estimate, as I think their costs would have gone down from launch). 

I personally think that if people bought a game, extra controller and XBox Live, they would probably break even.



IFireflyl on 26 January 2015
DM235 said:

http://press.ihs.com/press-release/design-supply-chain/microsoft-xbox-one-hardware-cost-comes-below-retail-price-ihs-tear

XBox One costs at launch were estimated to be about $396 ($471 less $75 for Kinect).  They are probably a little less now, as the costs of components typically go down each year.

AC:U and AC:BF would cost Microsoft a lot less than retail, as they don't have to pay themselves royalties, retailer margins, or even packaging, since the titles were just digital codes.  I think a high estimate would be $50 for both, although they most likely agreed to a lower price.

Retailers would do bundles are their own expense, so that would not affect Microsoft.

Given the estimates above, they were selling a $444 console for $330 (with some small retailer margin), so they were incurring a loss of about $100 (again, I think this would be a high estimate, as I think their costs would have gone down from launch). 

I personally think that if people bought a game, extra controller and XBox Live, they would probably break even.


I didn't even think about this (bolded) point. Nice catch.



 

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i love xbox 360 on 28 January 2015

$100 loss yes, but surly both the PS4 and Xbox one don't have to make profit on hardware but they can gain this back through Live/PSN subscriptions etc



 

 

cheryl on 27 April 2015

absolutly yes.



Nate4Drake on 27 April 2015

In Japan is a complete failure. In Europe is weak; good in NA, but really disappointing compared to XBox 360, which dominated NA previous Gen. So, all in all, I would say 'Very disappointing', but not a failure. It's still good in NA and UK.



”Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience, and the passion to reach for the stars to change the world.”

Harriet Tubman.

Baryonyx on 27 April 2015

Microsoft haven't shared any number's. It's pure speculation based on shipping number's.
It might as well be 8 mill for all we know.



 

PSN: Opticstrike90
Steam: opticstrike90

soulfly666 on 27 April 2015

No it is not a failure. It is selling great, it's just that the PS4 is doing much better. In fairness, I have both of them and the PS4 is the better system. I think the numbers are where they should be, and neither are a failure by any means.