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Forums - Gaming - Microsoft is not cut out to make hardware

ollie3650 said:
Squilliam you are almost on a 1 man mission to dismiss the PS3 and back the 360! No one else is helping you which makes the case for the 360 been better than the PS3 to be low - very low.......

LBP is gonna be huge!

 



Tease.

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There is zero chance MS will drop out of the games industry. They would like like losers, and they cant accept being losers



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

Squilliam said:
Sony took 3 generations to get it right.

Microsoft made a reliable console right out of the gate.

I don't think I need to say any more.

/Thread.

My ps1 from around europe launch still works. I don't even need to do the "flipping it around" when i play.

 

Need i say more ? ;)

 

 



Check out my game about moles ^

Staude said:
Squilliam said:
Sony took 3 generations to get it right.

Microsoft made a reliable console right out of the gate.

I don't think I need to say any more.

/Thread.

My ps1 from around europe launch still works. I don't even need to do the "flipping it around" when i play.

 

Need i say more ? ;)

 

 

My N64 works, my megadrive still works, never had an Xbox 1, My Ps1 failed and was replaced, My PS2 failed and was replaced 3 times, My PS3 failed twice, my PC has failed once in 15 years, never had a TV/Stove/Microwave/Fridge/Freezer break down.

 



Tease.

Squilliam said:

DMeisterJ said:
MS has gone backwards on their second console.

The exclusion of a Hard Drive, and a high failure rate is taking two steps back no matter how you cut it.

The exclusion of the HDD was because the cost of HDDs doesn't scale well with the other cost reductions. They tend to be a fixed cost. By not having the HDD Microsoft is able to scale the price of the Xbox 360 down to the PS2s level and lower with time.

Obviously, MS will stay in the game, but they have to be profitable. I don't think that even with all the money MS has, that they can afford to have another console be in the red. MS is down, what, 6 billion or so since the original XBOX came out? No matter how much you have in the bank, if they don't ever see profitability, it won't keep on coming, and the hardware directly ties into that. Spending 1 billion on repairs isn't chump change, and that can never happen again.

Theres no reason to assume at this point that the Xbox 360 won't make a profit. Between Live/Game royalties and the profit of their private game studios they would be raking in over 1.5 billion dollars per year in revenue. (Assuming 80 million games sold per year)

So you admit that the RRoD was a step back!  AHA!

OT:

I'm not saying that 360 won't make a profit, but the fact that it's so much in the red means that it'll take forever to make that back, no matter how much revenue you rake in.  And that MS can't afford to have bad quarters or years, as the division is largely doing sub-par.

 



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DMeisterJ said:
Squilliam said:

DMeisterJ said:
MS has gone backwards on their second console.

The exclusion of a Hard Drive, and a high failure rate is taking two steps back no matter how you cut it.

The exclusion of the HDD was because the cost of HDDs doesn't scale well with the other cost reductions. They tend to be a fixed cost. By not having the HDD Microsoft is able to scale the price of the Xbox 360 down to the PS2s level and lower with time.

Obviously, MS will stay in the game, but they have to be profitable. I don't think that even with all the money MS has, that they can afford to have another console be in the red. MS is down, what, 6 billion or so since the original XBOX came out? No matter how much you have in the bank, if they don't ever see profitability, it won't keep on coming, and the hardware directly ties into that. Spending 1 billion on repairs isn't chump change, and that can never happen again.

Theres no reason to assume at this point that the Xbox 360 won't make a profit. Between Live/Game royalties and the profit of their private game studios they would be raking in over 1.5 billion dollars per year in revenue. (Assuming 80 million games sold per year)

So you admit that the RRoD was a step back!  AHA!

OT:

I'm not saying that 360 won't make a profit, but the fact that it's so much in the red means that it'll take forever to make that back, no matter how much revenue you rake in.  And that MS can't afford to have bad quarters or years, as the division is largely doing sub-par.

 

Ok lets say that the opportunity cost of the Xbox 360 business was $8.45 billion in the bank - Assuming interest with time etc. A return on investment of 7% would be fair given todays economic climate. So they would need to profit 600 million per year or 150 million per quarter to make that invesment worthwhile from a profit perspective.

So the real question is whether Microsoft can make 600 million a year in profit from this moment out to justify the expense of getting into the home console market.

Between a few hundred million dollars in revenue from Xbox Live per quarter and an average royalty of about $10 per third party game theres a decent chance they will make a profit to justify the investment.

 



Tease.

Squilliam said:
DMeisterJ said:
Squilliam said:

DMeisterJ said:
MS has gone backwards on their second console.

The exclusion of a Hard Drive, and a high failure rate is taking two steps back no matter how you cut it.

The exclusion of the HDD was because the cost of HDDs doesn't scale well with the other cost reductions. They tend to be a fixed cost. By not having the HDD Microsoft is able to scale the price of the Xbox 360 down to the PS2s level and lower with time.

Obviously, MS will stay in the game, but they have to be profitable. I don't think that even with all the money MS has, that they can afford to have another console be in the red. MS is down, what, 6 billion or so since the original XBOX came out? No matter how much you have in the bank, if they don't ever see profitability, it won't keep on coming, and the hardware directly ties into that. Spending 1 billion on repairs isn't chump change, and that can never happen again.

Theres no reason to assume at this point that the Xbox 360 won't make a profit. Between Live/Game royalties and the profit of their private game studios they would be raking in over 1.5 billion dollars per year in revenue. (Assuming 80 million games sold per year)

So you admit that the RRoD was a step back!  AHA!

OT:

I'm not saying that 360 won't make a profit, but the fact that it's so much in the red means that it'll take forever to make that back, no matter how much revenue you rake in.  And that MS can't afford to have bad quarters or years, as the division is largely doing sub-par.

 

Ok lets say that the opportunity cost of the Xbox 360 business was $8.45 billion in the bank - Assuming interest with time etc. A return on investment of 7% would be fair given todays economic climate. So they would need to profit 600 million per year or 150 million per quarter to make that invesment worthwhile from a profit perspective.

So the real question is whether Microsoft can make 600 million a year in profit from this moment out to justify the expense of getting into the home console market.

Between a few hundred million dollars in revenue from Xbox Live per quarter and an average royalty of about $10 per third party game theres a decent chance they will make a profit to justify the investment.

Too many maths...  Too early in the A.M.

I give up.



Fei-Hung said:

 

Not necessarily true at all. If you look at history:

 

1) PS2 had a shit laser. Although I favored the PS2 over the xbox, i have to admit the xbox was better made and offered better specs (hard drive, custom soundtrack support) and the laser didnt die as often as the PS2 one. I went through 3 PS2's, buying a new one everytime it broke down. It didn't stop me buying a PS3!

2) xbox360 may have problems but they have a far better strong hold now and they can still build on it. The have loyal supporters and they have good Exclusive games (GoW, Fable, Halo, Forza, PGR).

3) They have More money and are doing far better financially this time then last time around. Why would they want to give up when they are making improvements in business! Logically it doesn't make sense.

 

The only way MS will take defeat is if everyone stopped buying the console and and they made heavy losses this time around as well. I don't see that happening.

@CAL4MITY- i don't think any of the PS fan posts were logically justified :s but then again, this is just my opinion!

Haha, note I said "neutral and thought out", doesn't necessarily mean they were logical! it just means they spent more time then the regular PS3 fanboy rants!

 



colonelstubbs said:
There is zero chance MS will drop out of the games industry. They would like like losers, and they cant accept being losers

QFT.

 



If you ask me, I think it's already too late! This RROD issue is like a permanent scar to the industry. I for one won't be buying something that is almost guaranteed to break on me. Something like this will pretty much ruin any chance of any future product from that company that'll be successful.



Generation 8 Predictions so far.....(as of 9/2013)

Console that will sell most: Nintendo Wii U

Who will sell more consoles between Microsoft/SONY: SONY