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Forums - Microsoft - Breaking: Xbox 360 Price Cut incoming

Bodhesatva on 09 July 2007

And yes, this does mean that Microsoft's profits are approximately 10 times that of Sony (which was approximately 1.5 billion last year). That's why I've said, on many occassions, that Sony can't win a spending war against Microsoft.

In terms of financial flexibility, Sony is much closer to Nintendo than they are Microsoft. MS towers above them both by a very sizable margin.



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montrealsoon on 09 July 2007

@Bonafide732:

>>i expect them to cut the price of the the core down to 250 to compete with the wii...

By no means does price parity with the Wii mean the 360CORE would actually be in competition with the Wii. Even at $100 less than the Wii would they be not cutting into Wii sales.

This isn't the GameCube...



montrealsoon on 09 July 2007

@Bodhesatva:

>>And yes, this does mean that Microsoft's profits are approximately 10 times that of Sony (which was approximately 1.5 billion last year). That's why I've said, on many occasions, that Sony can't win a spending war against Microsoft.



ckmlb on 09 July 2007

The core at the Wii will not compete in any way shape or form with the Wii. The Premium is the Wii's competitor not the Core. If there was some gimped version of the Wii with like no controllers or something selling for 200 dollars then that would have been the core's competition but there isn't for good reason.



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Bodhesatva on 09 July 2007
montrealsoon said:
@Bodhesatva:

>>And yes, this does mean that Microsoft's profits are approximately 10 times that of Sony (which was approximately 1.5 billion last year). That's why I've said, on many occasions, that Sony can't win a spending war against Microsoft.<<

I'm not totally convinced of Microsoft's bottomless pit of money.

The 5-6 billion they lost so far was investors money (could have been dividends instead). An if MS falls into 3rd place this generation, they shareholders may say these losses aren't worth it.

All this Peter Moore talk in the Newsweek article saying they will become profitable sounds sneakingly familiar to the claims that there were no widespread problems with the 360.... look where that went.

I might sound down on MS in this, but I think the reality is is they are eventually susceptible to the same demands of any corporation...

Good luck to them in any case!

Who said Microsoft's pockets were bottomless? They're just profoundly deeper than Sony's, and both are losing billions right now. 



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Lingyis on 09 July 2007
ckmlb said:
Lingyis said:
ckmlb said:
People were talking about the billion dollars in repair costs being insignificant to MS, but really it's like 1/5 of MS' total yearly net income or 1/12 of their revenue down the drain. I mean they can take it but it's definitely not insignificant.

ahem, 1 billion is 1/5 of MS income last QUARTER. they make about $14 billion a year. probably $17-$18 billion this fiscal year with vista.

EDIT: 1 billion is significant no matter how you look at it. even if a company makes $100 bln profit 1 bln is still 1 bln. in 2007 anyway.


That 14 billion is not net income that is revenue. So 1 billion dollars is 1/5 of their net income of in a year and 1/14 of their total revenue. In either case this is a big hit.


 sheesh, do your research and come back.  i can't believe you would respond without even looking things up.  even common sense would tell you they make more than 5 bln a year.

 MSFT's numbers:

Income Statement Quarterly
(Mar '07) 		Annual
(2006) 		Annual
(2005)
Total Revenue 14,398.00 44,282.00 39,788.00
Gross Profit 12,258.00 36,632.00 33,757.00
Operating Income 6,589.00 16,472.00 14,561.00
Net Income 4,926.00 12,599.00 12,254.00

 fiscal  2006: 12.6 bln net.

with vista this fiscal year numbers would be higher.   



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gorgepir on 09 July 2007

It was a long time since I heard sheesh



Legend11 on 09 July 2007

Microsoft needs to be be willing to take extreme risks and be all the way in if they want to be a real contender this generation and an even bigger one next generation. They should just say "f*ck it" and give a $100 price drop across the board and spend another half billion grabbing 20-30 exclusives. They need to take the gloves off or get out of the ring.  Time for them to bet it all and roll the dice.



ckmlb on 09 July 2007

Apparently I was mistaken. Doesn't change my point though.



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marcus1979 on 09 July 2007

what is the xbox 360 core anyway?

if its priced similar to wii how would that not be competing with wii?



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