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Forums - Microsoft Discussion - MS: Higher Shipments Could Lead to Bigger Profits

FishyJoe on 17 December 2008

This article does make it seem like they are making a profit on hardware even after the price cut.

http://www.guardian.co.uk/business/feedarticle/8164162

Although the global economic slowdown has hit consumer demand, Microsoft expects the overall video game industry to continue growing next year as more people choose to stay at home, said Alan Bowman, Asia general manager of Xbox operations.

...

In Asia, market research firm GfK said Xbox shipments in October grew by 53 percent compared to September after Microsoft cut the price of the console to less than $200.

No figures were available for the same period last year as they only began tracking the market late last year.
Bowman said current shipment volumes had reached such high levels that the company could afford to depend on volume to rake in a profit despite the lower prices.

"We're looking at some really great levels right now, so that allows us to pass on cost savings to our customers."

...

"Any global company needs to be mindful of their costs and money, but that's a combination of good internal controls and effective cost management," he said.


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whatever on 17 December 2008

We'll see on their next financial report I guess.



Serious_frusting on 17 December 2008

well we will see, so what are people expecting



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damndl0ser on 17 December 2008

How could they not be making tons of cash with those crazy attachment ratios.



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Darth Tigris on 17 December 2008

So, with Sony obviously reeling as a company financially right now, how would it look if Nintendo and MS (who are the big winners this holiday season; ESPECIALLY Nintendo) make a profit from their gaming sector and Sony does not (struggles are throughout the company, not just in gaming)?

No PS3 price cut anytime remotely close to soon. Profitability. Sony doesn't care about VGC fanboys. They have a company to run and mouths to feed. They will accept 3rd-place-but-profitable and then gear up for the next console round.



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NightstrikerX on 17 December 2008
Darth Tigris said:
So, with Sony obviously reeling as a company financially right now, how would it look if Nintendo and MS (who are the big winners this holiday season; ESPECIALLY Nintendo) make a profit from their gaming sector and Sony does not (struggles are throughout the company, not just in gaming)?

No PS3 price cut anytime remotely close to soon. Profitability. Sony doesn't care about VGC fanboys. They have a company to run and mouths to feed. They will accept 3rd-place-but-profitable and then gear up for the next console round.

 

Wait, what? How is this about sony again? Last I checked the original post was regarding microsoft, not sony.

 

FishyJoe said:

This article does make it seem like they are making a profit on hardware even after the price cut.

http://www.guardian.co.uk/business/feedarticle/8164162

Although the global economic slowdown has hit consumer demand, Microsoft expects the overall video game industry to continue growing next year as more people choose to stay at home, said Alan Bowman, Asia general manager of Xbox operations.

...

In Asia, market research firm GfK said Xbox shipments in October grew by 53 percent compared to September after Microsoft cut the price of the console to less than $200.

No figures were available for the same period last year as they only began tracking the market late last year.
Bowman said current shipment volumes had reached such high levels that the company could afford to depend on volume to rake in a profit despite the lower prices.

"We're looking at some really great levels right now, so that allows us to pass on cost savings to our customers."

...

"Any global company needs to be mindful of their costs and money, but that's a combination of good internal controls and effective cost management," he said.

 

Exactly, now.

To the original post. Its great to hear microsoft is boosting its sales, although I get the feeling its a bit too late. They may over-supply the market and that in turn may cause a reduction in price as demand will surely fade, even nintendo is not immune to this. After the holiday season, we should expect to see lower than usual numbers. Microsoft does not seem too worried about that. Do they have something planned perhaps to keep sales high thoughout 2009? The mind turns with possibilities.



Why must JRPG female leads suck so bad?

Darth Tigris on 17 December 2008
NightstrikerX said:
Darth Tigris said:
So, with Sony obviously reeling as a company financially right now, how would it look if Nintendo and MS (who are the big winners this holiday season; ESPECIALLY Nintendo) make a profit from their gaming sector and Sony does not (struggles are throughout the company, not just in gaming)?

No PS3 price cut anytime remotely close to soon. Profitability. Sony doesn't care about VGC fanboys. They have a company to run and mouths to feed. They will accept 3rd-place-but-profitable and then gear up for the next console round.

 

Wait, what? How is this about sony again? Last I checked the original post was regarding microsoft, not sony.

 

FishyJoe said:

This article does make it seem like they are making a profit on hardware even after the price cut.

http://www.guardian.co.uk/business/feedarticle/8164162

Although the global economic slowdown has hit consumer demand, Microsoft expects the overall video game industry to continue growing next year as more people choose to stay at home, said Alan Bowman, Asia general manager of Xbox operations.

...

In Asia, market research firm GfK said Xbox shipments in October grew by 53 percent compared to September after Microsoft cut the price of the console to less than $200.

No figures were available for the same period last year as they only began tracking the market late last year.
Bowman said current shipment volumes had reached such high levels that the company could afford to depend on volume to rake in a profit despite the lower prices.

"We're looking at some really great levels right now, so that allows us to pass on cost savings to our customers."

...

"Any global company needs to be mindful of their costs and money, but that's a combination of good internal controls and effective cost management," he said.

 

Exactly, now.

To the original post. Its great to hear microsoft is boosting its sales, although I get the feeling its a bit too late. They may over-supply the market and that in turn may cause a reduction in price as demand will surely fade, even nintendo is not immune to this. After the holiday season, we should expect to see lower than usual numbers. Microsoft does not seem too worried about that. Do they have something planned perhaps to keep sales high thoughout 2009? The mind turns with possibilities.

True.  Sorry.

 



Passenger57 on 17 December 2008

It wouldn't surprise me, as it would explain why it took so long for the price cut.




 

Zombl337 on 17 December 2008

Duh, they have been profiting on the 360 for over a year now. Unlike Sony, Microsoft made thier console profitable from the beginning.



PREDICTIONS:
360 will outsell PS3 YTD for 2008. (CHECK!)
360 will have the best showing at E3 & TGS in 2009
2009 will be another year for the 360 over PS3
End OF 2009 SALES :: 360 - 40M;  PS3 - 30M; Wii - 70M

BenVTrigger on 17 December 2008

yeah they've been profiting for a year off the 360 plus with the money they get from live memberships and a really high attatch ratio they are definatley making some money