| rafichamp said: 14.4 billion in revenue, but it has not even made profit yet. Which means that the 360 actually lost Microsoft money. |
Wrong!
| Dodece said: Doing very rough math my calculator cannot handle numbers that high. Each console sold has on a average generated $834 in sales at retail. That means owners have spent in total over twice their original investment in the brand. Whether you like this or not that is worth bragging about. They are saying our customers buy. This figure actually proves that the console is profitable in North America even if you subscribe to the notion that Microsoft was a twenty percent loss leader at the beginning of the generation. Even if you balance the loss lead out to fifty dollars across the board. Microsoft is obviously more then covering the loss with software and accessories. We must remember that this is also including the now reduced price models. You can either say the guy who bought the Arcade for two hundred has spent over six hundred dollars more, or you can reach the more logical conclusion that the front end users are big time spenders. Though no matter how you parse this it is a fantastic amount or reinvestment. Saying there is nothing to brag about is bullshit plain and simple. If Microsoft can maintain this level of revenue per console even with late adopters it can be viewed as nothing less then a huge gold mine, and even if you try to lay down the revenue to entirely games Microsoft still comes out well on top thanks to the success of their first party or published titles. Halo 3 has accounted for over four hundred million of this revenue alone. |
Well said Dodece...the numbers speak for themselves, and it only helps to amplify M$'s boast of CRAZY attach rates for the software on the 360. In the next year, I think we will see M$ tweaking and improving the developer kits to push more people into working on 360 games, and in turn, extending this console's lifespan. Also, M$ being M$, you can expect that the OS will take center stage for the next console, and basically, you'd just get a more powerful hardware side...making it a HUGE plus for developers.
"...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
?????? How come when EA (not sure if it is EA or ubisoft w/e) was bragging that their revenue was high ppl said revenue doesn't matter? this is a different story now?? Im really confused.
| XxXProphecyXxX said: ?????? How come when EA (not sure if it is EA or ubisoft w/e) was bragging that their revenue was high ppl said revenue doesn't matter? this is a different story now?? Im really confused. |
You are comparing Apples to Oranges...
This $14.5 BLN can be directly traced to a dollar value per console sold in the US...I really don't believe that M$ released this figure in the financial context, but instead as a way to get that metric I spoke of before.
Also, looking at EDD and straight lining it to profit/loss for the Xbox 360 returns is simplistic and wrong, to say the least. Anybody who does that simply displays a level of ignorance that is amzing, considering that this VERY site mention that fact nearly everytime they breakdown the financials for M$.
"...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
Makes me kinda wonder how much of that was profit?
I would say they made at least 1 billion off of profit in the US alone.
High Revenue doesn't mean anything.You can price your product for $99 and you will get record sales and revenue cause people will buy your product,but you will be in loss then
| TheTruthHurts! said: Congrats 360. So just like sales this Gen, profits also go Nintendo>MS>>>>Sony. Lets hope Sony starts to turn things around soon also. |
Actually profits go something like Nintendo>>>>>>MS>>>>Sony because if I remember right even MS has lost billions of dollars this gen so far.
| Solid_Snake4RD said: High Revenue doesn't mean anything.You can price your product for $99 and you will get record sales and revenue cause people will buy your product,but you will be in loss then |
"High Revenue doesn't mean anything" That statement is WRONG on so many levels....but I'll bite. As we see with GM and many other Car companies, Revenue, in of itself isn't the only thing, but when placed in the context of a cohesive strategy, it matters a whole lot. Many have been saying that you CAN'T look at the profit margins for the EDD, and simply extrapolate to the 360...I think the latest news on Zune HD and several other show that 360 wasn't the sector burning the EDD's budget, but instead, it was R&D. If a company can show that it's scarificing profits for long term benefits with R&D...it goes a long way.
"...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
heruamon said:
"High Revenue doesn't mean anything" That statement is WRONG on so many levels....but I'll bite. As we see with GM and many other Car companies, Revenue, in of itself isn't the only thing, but when placed in the context of a cohesive strategy, it matters a whole lot. Many have been saying that you CAN'T look at the profit margins for the EDD, and simply extrapolate to the 360...I think the latest news on Zune HD and several other show that 360 wasn't the sector burning the EDD's budget, but instead, it was R&D. If a company can show that it's scarificing profits for long term benefits with R&D...it goes a long way. |
It goes a long way,lol
It depends on the Shareholder,where they take the company.Xbox 360 revenues are high cause its most popular in US and people there buy alot of software and acssesaries.In Wii's case,even though its userbase is high,the people that buy it are casual and just bauy it for fun,they don't follow any select game and have few games and don't use many accesaries.In Sony's case,everything is very expensive,if they reduce the price then their revenues will be much higher
Solid_Snake4RD said:
It goes a long way,lol
It depends on the Shareholder,where they take the company.Xbox 360 revenues are high cause its most popular in US and people there buy alot of software and acssesaries.In Wii's case,even though its userbase is high,the people that buy it are casual and just bauy it for fun,they don't follow any select game and have few games and don't use many accesaries.In Sony's case,everything is very expensive,if they reduce the price then their revenues will be much higher |
I'm not following you...
"...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
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