By using this site, you agree to our Privacy Policy and our Terms of Use. Close
 

After seeing the Direct and MP reveal, what's your hype for E-Day?

Already pre-ordered for e... 2 100.00%
 
Be there day one at the games launch 0 0%
 
Waiting to see how reviews look 0 0%
 
May pick it up on sale 0 0%
 
Still not interested (booooo) 0 0%
 
Total:2
JRPGfan said:
trunkswd said:

From Jason Schreier:

"Seeing a lot of misunderstanding about this. Profit margin is the percentage of revenue that is kept as profit. A 3% margin means that for every $100 you make, you're spending $97 and keeping $3. Margins don't reflect how much money you're making; they reflect how efficient the business is.

"A business with 3% margins could be making millions of dollars and doing totally fine. But if you're part of a company like Microsoft, which has divisions with 40%+ margins, then it's much harder to convince the bean-counters to keep making big investments in your biz"

Post by @jasonschreier.bsky.social — Bluesky

But that is a profit margin.....   She never says that, she said a "accountability margin".
I think there has to be a reason for that word use, instead of profit margin, or net profit or some such (like operating margin).

You don't use creative language unless you want to mislead. 
If every other business uses "profit margin" and you choose not too, there is a reason for it.
Ei. its probably worse than 3%.

They're likely synonyms within the industry that mean basically the same thing... hence why Jason Schreier clarified it as a result of getting questioned about it. He wouldn't clarify a random unrelated word for no reason out of the blue for fun.



Around the Network

Xbox service is down you can't log in at the moment.... Sony must really have hated that Halo got stripped from their showcase.






Btw; Stellar Blade Dev had this to say about an possible XBOX version 'Nothing is impossible, we just need time'






Have you guys seen this yet :
https://www.windowscentral.com/gaming/xbox/inside-xboxs-margin-crush

"To make matters worse, Xbox struggled to secure anywhere near enough memory with fixed prices necessary to keep its hardware margins healthy. I'm told Xbox is losing not dozens, but more in the hundreds of dollars per Xbox Series X|S console sold right now,"- Jez Corden 

That is nuts. After the price increases, it is still losing 100's of dollars on each console in subsidies...

This goes into the more than 20 billion investment in the past 5 years, and still losing half a billion in revenue annually quote by Sasha Sharma.

Imagine buying ABK for $76 bn. and using a extra $20 bn, trying to prop up the xbox ecosystem.... and revenue drops (thats almost $100bn total)
You basically burnt $20 bn for nothing... while your competition is saying "this is our most profitable generation ever!" 

How the hell did Phil Spencer, last as long as he did?

Last edited by JRPGfan - on 12 June 2026

JRPGfan said:

Have you guys seen this yet :
https://www.windowscentral.com/gaming/xbox/inside-xboxs-margin-crush

"To make matters worse, Xbox struggled to secure anywhere near enough memory with fixed prices necessary to keep its hardware margins healthy. I'm told Xbox is losing not dozens, but more in the hundreds of dollars per Xbox Series X|S console sold right now,"- Jez Corden 

That is nuts. After the price increases, it is still losing 100's of dollars on each console in subsidies...

This goes into the more than 20 billion investment in the past 5 years, and still losing half a billion in revenue annually quote by Sasha Sharma.

Imagine buying ABK for $76 bn. and using a extra $20 bn, trying to prop up the xbox ecosystem.... and revenue drops (thats almost $100bn total)
You basically burnt $20 bn for nothing... while your competition is saying "this is our most profitable generation ever!" 

How the hell did Phil Spencer, last as long as he did?

This coincides with my post yesterday. Phil and co several years ago decided to turn Xbox into a software-focused company and intentionally stripped back console manufacturing in favor of "This is an Xbox" with the console just being one of many options. Which means they weren't making anywhere near as many orders as Sony or Nintendo were during that transitional time, which happened over the course of the last few years.

Then, once it became apparent that Phil's bet on Netflix of gaming, and This is an Xbox weren't going to be the successes he had hoped for, the component shortages started happening. And because of Xbox dramatically scaling back manufacturing for several years, Sony, Nintendo, and all other major tech companies had already secured their positions of having more availability of components, even though still at a higher cost.

And being in a time of scarcity, it's whoever secures the most orders. A process that takes months, if not years. So because Xbox is in no position to outbid other companies, they have to pay a higher premium for smaller orders.

A perfect storm of poor decision making and bad luck.



You called down the thunder, now reap the whirlwind

Around the Network

My all AMD build about to really pay off!



You called down the thunder, now reap the whirlwind

G2ThaUNiT said:
JRPGfan said:

Have you guys seen this yet :
https://www.windowscentral.com/gaming/xbox/inside-xboxs-margin-crush

"To make matters worse, Xbox struggled to secure anywhere near enough memory with fixed prices necessary to keep its hardware margins healthy. I'm told Xbox is losing not dozens, but more in the hundreds of dollars per Xbox Series X|S console sold right now,"- Jez Corden 

That is nuts. After the price increases, it is still losing 100's of dollars on each console in subsidies...

This goes into the more than 20 billion investment in the past 5 years, and still losing half a billion in revenue annually quote by Sasha Sharma.

Imagine buying ABK for $76 bn. and using a extra $20 bn, trying to prop up the xbox ecosystem.... and revenue drops (thats almost $100bn total)
You basically burnt $20 bn for nothing... while your competition is saying "this is our most profitable generation ever!" 

How the hell did Phil Spencer, last as long as he did?

This coincides with my post yesterday. Phil and co several years ago decided to turn Xbox into a software-focused company and intentionally stripped back console manufacturing in favor of "This is an Xbox" with the console just being one of many options. Which means they weren't making anywhere near as many orders as Sony or Nintendo were during that transitional time, which happened over the course of the last few years.

Then, once it became apparent that Phil's bet on Netflix of gaming, and This is an Xbox weren't going to be the successes he had hoped for, the component shortages started happening. And because of Xbox dramatically scaling back manufacturing for several years, Sony, Nintendo, and all other major tech companies had already secured their positions of having more availability of components, even though still at a higher cost.

And being in a time of scarcity, it's whoever secures the most orders. A process that takes months, if not years. So because Xbox is in no position to outbid other companies, they have to pay a higher premium for smaller orders.

A perfect storm of poor decision making and bad luck.

Dude Phil rolled a twenty sided dice, and landed a "1" (critical failure).

Crazy random unlucky streak. 



This generation has been a bitch all around for gaming hardware, the only generation we have seen yet where consoles not only fail to decrease in price, but increase instead. But still losing over a hundred dollars per system after increasing Series S|X pricing from $300 to $400 and from $500 to $650 since the start of a generation? Spencer sure did fail immensely on the hardware side of the business, if the other 2, Sony and Nintendo, were forward thinking enough to lock in large order multi-year contracts for RAM and SSD's not too long after the price started increasing in June 2025 for RAM and November 2025 for SSD's, Spencer should have been able to as well, but instead he seemed to have it in his mind that Xbox didn't need to sell much hardware and would soon be raking in money hand over fist from releases on Playstation and Switch 2.

Last edited by shikamaru317 - on 12 June 2026

JRPGfan said:
G2ThaUNiT said:

This coincides with my post yesterday. Phil and co several years ago decided to turn Xbox into a software-focused company and intentionally stripped back console manufacturing in favor of "This is an Xbox" with the console just being one of many options. Which means they weren't making anywhere near as many orders as Sony or Nintendo were during that transitional time, which happened over the course of the last few years.

Then, once it became apparent that Phil's bet on Netflix of gaming, and This is an Xbox weren't going to be the successes he had hoped for, the component shortages started happening. And because of Xbox dramatically scaling back manufacturing for several years, Sony, Nintendo, and all other major tech companies had already secured their positions of having more availability of components, even though still at a higher cost.

And being in a time of scarcity, it's whoever secures the most orders. A process that takes months, if not years. So because Xbox is in no position to outbid other companies, they have to pay a higher premium for smaller orders.

A perfect storm of poor decision making and bad luck.

Dude Phil rolled a twenty sided dice, and landed a "1" (critical failure).

Crazy random unlucky streak. 

No kidding! This quote from Asha on #3 of her memo was CRAZY. She already talking about how much worse it'll be in a year and a half from now.

"When I joined as CEO in February, the price we paid for console storage components was over 2x as high as we paid last fall. These costs have since doubled again. And as we plan for the 2027 holiday season, we expect another significant increase, taking us over 5x the prices we paid only two years earlier."



You called down the thunder, now reap the whirlwind

G2ThaUNiT said:
JRPGfan said:

Dude Phil rolled a twenty sided dice, and landed a "1" (critical failure).

Crazy random unlucky streak. 

No kidding! This quote from Asha on #3 of her memo was CRAZY. She already talking about how much worse it'll be in a year and a half from now.

"When I joined as CEO in February, the price we paid for console storage components was over 2x as high as we paid last fall. These costs have since doubled again. And as we plan for the 2027 holiday season, we expect another significant increase, taking us over 5x the prices we paid only two years earlier."

If your losing that much money on each console sale..... why even bother trying to sell large amounts anymore? Why kickstart a new generation?

I'd be trying to cooldown things, and trying other ways to make revenue (atleast for short term, that makes so much more sense).
Like Pulling E-day.... is going to cost them millions (in profits).

And if they lose 100's of dollars on each console sold, and cannot keep up with hardware production as is.... why bother?
I assume part of the console exclusives is to try and push the platform.

Is the console exclusives just to try and fix consumer trust abit, for next generation? (so it doesn't suffer from the "series" generation of xbox's)
A long-term view, at the cost of current day profits.

I feel bad for Asha Sharma, honestly a mess she inherited.