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Forums - Microsoft Discussion - Is MS's total investment in the 360, in the black?

If MS continues and sells another 20 Million consoles this generation, then they will re-coup their investment.


2009-2012 = 4 years. 20M/4 = 5 million units/year required to hit this target.


Remembering most consoles sales occur when the price is lower i would say MS should make a profit this generation.





Predictions JAN 08

2008 PS3-19.5M(actual 19.5) XBOX360-23M(actual 27.5) Wii - 37M(actual 45.8M)

End of 2009 PS3-27 25M XBOX360-30 35M Wii - 48 63M (revised DEC 08)

Price Point
Mid 2008 Wii $250 Xbox360$249 Xbox360(HDD)$299 PS3 $399

Mid 2009 Wii $189 Xbox360$199 Xbox360(HDD)$249 PS3 $339

Mid 2010 Wii $ 149 Xbox360$159 Xbox360(HDD)$199 PS3 $289

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Aprisaiden said:
famousringo said:
All this talk of how much MS has lost or earned on the Xbox brand is severely clouded by the fact that its game division is rolled in with a lot of other products. Zune, peripherals, I can't even keep track of all the things that prevent me from keeping track of Xbox financials. :P

Well i think its fair to say the Zune and Microsoft Game Studio's(PC-wise) and 1st party 360 peripherals are proberly profitable. Im sure that if those products were moved to their own division the profit/loss for 360 would be rather simaliar to now... I think the main reason Microsoft keeps all those products lumped together is for revenue reasons. How could 360 compete with Wii+DS or PS3+PS2+PSP revenue-wise.

Actually a fair few retailers are dropping Zune due to lackluster sales. I wouldn't be surprised if it is LOSING money.

But I agree Microsoft probably makes a little money off game PC games, but overwhelmingly only due to games that are made due to the surity of sales on the 360.

 



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

johnsobas said:
sorry buddy, you are a horrible liar. The best i could find is mac market share at 7% and that was at its peak. Most people who use macs use them for creating movies, music, or art. Have fun in fantasy world.

 

You're not very good at looking - learn how to use wikipedia

http://en.wikipedia.org/wiki/Usage_share_of_desktop_operating_systems

In May 2008, according to Net Applications, it was on 7.8% (7.8 > 7 btw) and Vista was on 15.15%

 

and now certainly isn't Mac's peak - I think it was over 50% ages ago

 

Oh, and I use my Mac for internet browsing, word processing, programming and other nerdy things - not to create art



TheRealMafoo said:
ymeaga1n said:

Most people never use their office pcs for anything other than web browsing and ms offices?...are you serious? What about retail sales programs? Point of sales machines? Software which access the company database? Inventory programs? Accounting programs? The biggest problem is not IT training. If you wanted to attribute it to one major thing, it would be because business/enterprise software makers don't make software for MACs.

I have worked for 3 different small~medium size companies. And yes we did use webs apps, but that was a very very small part. Most companies do NOT use web apps...developing web apps is not cheap. Our third party software ran from our windows server database, which is the platform it was designed for. Client software was only made for windows. We ran a domain from a windows servers. We ran our mail system from an exchange server. Mail was checked using outlook.

You're crazy if you believe that Mac's can replace PC's in the work place.

 

 

The trend is web apps. I work for a small compact (120 million a year in sales), and we have moved all our internal apps to the web. I worked for CSC (multi-billion dollar company) for 7 years as a developer, and when I left three years ago, they were in the process of moving everything to the web. They probably have now.

In our company (350 employees), people use MS Office (Outlook, Word, Excel, PowerPoint), and a web browser for everything else. We could do that on a Mac (some of us do).

I am a .NET developer, so I need windows. We need IIS, so we need windows server, but all non-developers can use OSX in our company.

In fact, I think it would reduce costs for us by tens of thousands a year.

 

I work for a company that has 400,000 employees worldwide(not nearly all of them are IT people,a lot are drivers, hint,hint, but we do have about 2,000 people in IT) and we use pretty much all Microsoft tools.  I am not reffering just to the Office Suite(although the Office stuff is completely integrated with one another and provides for a very nice way to get information around, ie. Outlook, Office Messenger, etc.) but other stuff as well.  Sharepoint has gotten incredibly huge for Microsoft and is a great tool for getting your whole group collaborated.  Visio is amazing, some have similar features but none compete with it.  Visual Studios is my favorite IDE, although Eclipse comes in a close second.  Microsoft is not just about giving you Word and Excel but also creating custom solutions to fit your infrastructuring needs.  And I read an article about people in business wanting to go Apple but find it is really a headache.  Apple provided little to no support for the businesses and the compatibility issues were a big hurdle.  Apple is not interested in them and in fact have stated so.



DogWeed said:
if $6billion is true then i guess thats why they have to overprice their accessories and charge for online service.

 

Yeah, it'd be nicer if the bundled controller had no rumble so you were pretty much forced to pay 50$ for the rumble-enabled controller. But hey, Sony doesn't need money at all... they only lost 3 billion on ps3 cost-price difference, nevermind the R+D costs on top of that.

Jeebus guys, stop trying to play it like there's one of the three that likes our money the most, they all love it and will be happy to take it from us in any way possible.





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

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To the mac - PC -stuff:

the marketshares are soooo different. Every source tells you something different. But my personal impression is, MAC has like 2-3% maximum. Nobody uses a mac here in Germany. All good old windows.

the loss for the 360 is like 1.5 billion - 8 billion just in this thread. Noone knows exactly. But the xbox brand was quite okay, the brand is known and they will be established in the videogame industry at the end of this generation. And right now, they are actually making a profit. So MS has no reason to worry.



Imagine not having GamePass on your console...

DirtyP2002 said:
To the mac - PC -stuff:

the marketshares are soooo different. Every source tells you something different. But my personal impression is, MAC has like 2-3% maximum. Nobody uses a mac here in Germany. All good old windows.

the loss for the 360 is like 1.5 billion - 8 billion just in this thread. Noone knows exactly. But the xbox brand was quite okay, the brand is known and they will be established in the videogame industry at the end of this generation. And right now, they are actually making a profit. So MS has no reason to worry.

 

Actually Apple marketshare in the laptop/pc market has been steadily climbing as of late. It's sitting around 10% worldwide now but (just like the xbox lol) its strongest base is in the USA. Granted it's mostly driven by consumer demand tho. The only companies I know that are 100% on apple computers are farms with final cut server installed.





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

I think we can safely say MS will be short a few bob if they continue with their xboxes



I hope my 360 doesn't RRoD
         "Suck my balls!" - Tag courtesy of Fkusmot

There is no doubt they will recoup their 360 losses from RRod. But they will have a really hard time recouping R&D + Xbox's losses before they need a new console.



Not with the $1.1 billion loss last year MS has to write down to repair XBOX 360s...



Wii Code: 4819-7684-2396-4558