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Forums - Microsoft Discussion - Microsoft’s pockets not so deep for the Xbox 360 division

Legend11 said:

It's funny how you can tell how poorly the PS3 is doing by the amount of trolling by PS3 fanboys in the Microsoft forum. And considering how much they're trolling things must be looking pretty bad for the PS3.

Maybe we need to bring back that chart showing how many PS2 gamers are turning to the Wii and 360. Considering the price drop it is likely even higher now. Good times... Good times... :)

Or laugh as PS3 fanboys crow about getting sloppy seconds (with a new coat of lipstick). Who could have imagined back in the PS2 days that it would come to this? Keep it up PS3 fanboys, you're providing us all with a good laugh.

 

Pretty much.

Last wave of trolling was triggered by the megaton FF13 news.

Nowadays it's about the ps3 being outsold worldwide.





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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Bodhesatva said:

Isn't this argument used by both sides of the HD divide? I'm absolutely sure I've seen people suggest Sony would support their games division with their other ventures.

Given that Sony has actually lost more money in the last two years than Microsoft has in gaming, I'm really not sure this is something to crow about. Both companies will need to tighten the belt considerably.

This strikes me as one of the premier examples of a Sony/Microsoft slapfest, while Nintendo is laughing all the way to the bank -- keep your eyes on the prize, fellas, because beating each other isn't actually the goal here.

 

Since when?  As of June, 2008, Sony had only lost around $3 billion on the ps3.

As of September 2005, Microsoft had lost $4 billion on the Xbox, and that number increased to over $6 billion upon the launch of the 360, and then there was the $1.15 billion they were forced to spend on 360 repairs.

Also, Sony has been tightening their belt primarily through cutting manufactering costs.  Thus far, they haven't curbed any spending on development, unlike Microsoft.  Hell, they bought Evolution Studios in the middle of 2007, when SCE was at it's weakest.  Conversely, Microsoft has shut down Ensemble and FASA, as well as let many of their second party affiliates get bought up by larger publishers (BioWare, Bizarre).

The difference between Sony and Microsoft is that Microsoft has always been losing money on the Xbox brand, and is only now making a slight profit (and those profits may be due to other things in the Entertainment and Devices division, rather than the 360 itself).  The division has yet to provide any real benefit to Microsoft.  Sony, however, hit the ground running when they first entered the video game market.  They've tasted success (SCE was one of the most profitable divisions in the company up until just a few years ago), and I'm sure they want it back.



is this 3 billion Sony's division losses? or losses solely for the ps3?



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Bitmap Frogs said:
Legend11 said:

It's funny how you can tell how poorly the PS3 is doing by the amount of trolling by PS3 fanboys in the Microsoft forum. And considering how much they're trolling things must be looking pretty bad for the PS3.

Maybe we need to bring back that chart showing how many PS2 gamers are turning to the Wii and 360. Considering the price drop it is likely even higher now. Good times... Good times... :)

Or laugh as PS3 fanboys crow about getting sloppy seconds (with a new coat of lipstick). Who could have imagined back in the PS2 days that it would come to this? Keep it up PS3 fanboys, you're providing us all with a good laugh.

 

Pretty much.

Last wave of trolling was triggered by the megaton FF13 news.

Nowadays it's about the ps3 being outsold worldwide.

Ha.

/looks at charts from November 2007 til now

 



BMaker11 said:
Bitmap Frogs said:
Legend11 said:

It's funny how you can tell how poorly the PS3 is doing by the amount of trolling by PS3 fanboys in the Microsoft forum. And considering how much they're trolling things must be looking pretty bad for the PS3.

Maybe we need to bring back that chart showing how many PS2 gamers are turning to the Wii and 360. Considering the price drop it is likely even higher now. Good times... Good times... :)

Or laugh as PS3 fanboys crow about getting sloppy seconds (with a new coat of lipstick). Who could have imagined back in the PS2 days that it would come to this? Keep it up PS3 fanboys, you're providing us all with a good laugh.

 

Pretty much.

Last wave of trolling was triggered by the megaton FF13 news.

Nowadays it's about the ps3 being outsold worldwide.

Ha.

/looks at charts from November 2007 til now

 

 

But last month wasn't so good, was it? and that's when the heavy trolling started again.

 





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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JaggedSac said:

LOL.  I was very mistaken.  I looked into it and Nintendo and Sony are both doing alot worse than I thought.  And believe me, they are definitely making changes, just not as outward facing as M$.  Especially with stock trends like that.

http://moneycentral.msn.com/investor/research/wizards/srwhistory.asp?Symbol=SNEJF

  SONY  Industry Group
3 Months  -35.0%   NA
6 Months  -29.3%   NA
12 Months  -47.7%   NA

http://moneycentral.msn.com/investor/research/wizards/srwhistory.asp?Symbol=NTDOF

  Nintendo  Industry Group
3 Months  -39.7%   NA
6 Months  -32.4%   NA
12 Months  -42.9%   NA

http://moneycentral.msn.com/investor/research/wizards/SRWHistory.asp?Symbol=MSFT

  Microsoft  Industry Group
3 Months  1.3%   -14.4%
6 Months  -9.7%   -24.3%
12 Months  -11.4%   -38.2%

I thought the conventional wisdom was that video games actually sold better in an economic recession?

 



We don't provide the 'easy to program for' console that they [developers] want, because 'easy to program for' means that anybody will be able to take advantage of pretty much what the hardware can do, so the question is what do you do for the rest of the nine and half years? It's a learning process. - SCEI president Kaz Hirai

It's a virus where you buy it and you play it with your friends and they're like, "Oh my God that's so cool, I'm gonna go buy it." So you stop playing it after two months, but they buy it and they stop playing it after two months but they've showed it to someone else who then go out and buy it and so on. Everyone I know bought one and nobody turns it on. - Epic Games president Mike Capps

We have a real culture of thrift. The goal that I had in bringing a lot of the packaged goods folks into Activision about 10 years ago was to take all the fun out of making video games. - Activision CEO Bobby Kotick

 

URNotE said:
Microsoft is not made out of a mountain of cash. There will come a time when that cash runs out and the money tree backfires.

I think Sony and Microsoft share that same problem.

 



i dont care abt their pocket, i wan xbox360 to be cheap and i will buy it soon. PS3+360 i have, i wont miss any games finally :D thank you microsoft for slashing ur console's price ;)



Microsoft -- as a total company -- will do well because it has several MUST BUY products. (You get a computer, you get an OS, you get a package of software -- usually the last two are Microsoft).

The Microsoft Entertainment Division meanwhile, is facing the same pressures that Sony and Nintendo are facing. Potentially soft (to sagging) sales because of the worsening global economic climate. Stock prices are a measure of relative wealth and were admittedly over-inflated (remember when Nintendo had the second-highest stock value of any company in Japan?). It does not necessarily measure or even correlate with profitability.

The economic conditions will mean reductions in R&D and risk-taking. That makes it harder for a console using newer technology than for one using older technology. So Sony will NOT be getting rid of the PS2 anytime soon and Nintendo will benefit from its lower-tech Wii. Meanwhile, the HD consoles will have trouble as those who do not have them will probably delay purchases. And all software sales will slump (less units bought).

So the reaction to economic tough times is "down-sizing" and "right-sizing" -- no one can say that is a surprise for units that are losing money (or have a history of losing money). Actually, the bigger surprise is that they remain open because often entire units/product lines can get canceled when the economy tanks. And if conditions get much worse, we could see that -- and the Crash II.

Mike from Morgantown



      


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I still think M$ is making some money at $200 retail. The hardware is 3 yrs old now. DVD drives cost what $15-20 to manufacture. Its not the easiest business to be in but with an attach rate of over 7( that averages out to 70$ per customer for third party royalties and 30-40 bucks for every first party title) i think M$ should make it just fine- they have decided to go mass market instead of an elitest(no pun intended) price tag.

So will SONY but not before 2010.



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