By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Microsoft - Microsoft will make a net profit on the Xbox brand before the 360 is done?

heruamon on 14 January 2009

If EDD is making money, M$ is happy, because you can look at the division's products list as a whole and do some extrapolations...accurate...no...but trends are imprtant. Also, M$ will probably announce it to the high heavens!



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

Around the Network
Final-Fan on 14 January 2009
Squilliam said:
Final-Fan said:
Squilliam said:
Final-Fan said:
Squilliam said:
Updated! Btw, I'm not saying that the Xbox 360 will pull $6B+ profit in those 4 years, what im saying is that if it can cut the losses down to around 1.5-2B $ that the tail of the system with Live revenues etc will take it over the $6B mark without the aid of the nextboxes revenues.
But are you sure it won't start out as a loss leader?  That would be another factor against the 360 making the "Xbox brand" positive before it gets retired.
Im not sure exactly what they will do with the Xbox next... The technologies/architecture is a big unknown so really we don't know how much profit/loss they will make or how much they will charge for it.

However with the Xbox 360 console sitting at between 2.4 Billion in losses, between the financial results in this quarter and the next we could see the console sitting somewhere under 2B in losses with 4 years left on the clock as the main console. So the question of whether or not the 360 will make a profit has almost been answered and the real question now: 'is how much profit will it make?'
The answer is only clear because you've apparently changed the question:  the figures in that post ask "Will the 360 turn a cumulative profit?" instead of the OP question "Will the 360 make the Xbox family turn a cumulative profit in its lifetime?"

Actually, come to think of it, how did you even arrive at that $2.4 billion figure?
($3B) + $600M profit! To arrive at that ($2.4B figure). That doesn't include the profit/loss of the coming financial update.

I consider the question of whether or not the Xbox 360 will turn a profit to have been answered already really... With 4 good strong years plus what looks to be a very good tail, the question for me turns to whether or not the Xbox 360 will bring the entire system to profitability if one considers the sheer quantity of revenue Xbox Live brings along with the increased royalties over the previous generation.

  I think you forgot that 2005 exists.  

 -485,000,000 + -1,262,000,000 + -1,892,000,000 = -3,639,000,000



Tag (courtesy of fkusumot): "Please feel free -- nay, I encourage you -- to offer rebuttal."
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
My advice to fanboys: Brag about stuff that's true, not about stuff that's false. Predict stuff that's likely, not stuff that's unlikely. You will be happier, and we will be happier.

"Everyone is entitled to his own opinion, but not his own facts." - Sen. Pat Moynihan
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
The old smileys: ; - ) : - ) : - ( : - P : - D : - # ( c ) ( k ) ( y ) If anyone knows the shortcut for , let me know!
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
I have the most epic death scene ever in VGChartz Mafia.  Thanks WordsofWisdom! 

ramses01 on 14 January 2009
Skeeuk said:

its almost impossible to find out how much xbox is going to make, because its all included in thier E+D dept.

i think last FY it was 320mil+ profit in E+D if i was being generous i would say 1/3rd was xbox @ roughly 100million profit.

so imo microsoft wont make thier money back, and frankly it wont affect them at all, thier xbox business will carry on.

to be honest with you, the 1 billion for rrod, they wont even make that back mabey end of gen they may do, but like i said its not going to affect the xbox business in any way. if there was no such thing as compotition conmissions in various countries, microsoft would easily knock out any competitor with ease.

 

ps. im getting sick of reading about finances, 1 or 2 a week is fine but 1 or 2 every day is to much lol.

If E&D was +320, then XBOX was probably +500 or so.   Lots of losers in E&D.

 



rocketpig on 14 January 2009

Sony didn't make $6b during the PS2's heyday.

So, no, I think that number is unattainable.

But it should be able to slice $2b+ off that number easily.




Or check out my new webcomic: http://selfcentent.com/

Bitmap Frogs on 14 January 2009

You copypasted it from neogaf, didn't you? it's missing the last quarter... nintendo posted a huge profit, sony posted around -350M$ and microsoft E&D had some profits.

Grab the numbers from their respective websites before they take them down... next quarter is around the corner.





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).