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Forums - Sales Discussion - Xbox division profit nearly doubles, 34 million 360s sold!?

bonkers555 on 23 October 2009

What is so impressive is that Xbox Live have become a cash cow for M$. I think Sony should start thinking about PSN a little.



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Seece on 23 October 2009
OctaBech said:
newbie3 said:
Vetteman94 said:
So how much is the E&D Division in the red since the original Xbox came around? Its nice to see they are starting to pick up the pace diggin themselves out of that hole.

I dont remember anymore, but for what it's worth Sony has probably lost more with PS3 than MS has with the entire Xbox project (1 and 360). Or it should be close anyway.

 

The last two fiscal years (which end each June 30)the Xbox division profited 469m and 169m or around there. So about 650m profit. But remember before that they had a 1B write off just for RROD, so they haven't even made that back. They start off this fiscal year with a nice 312m profit now.

 

Then on the other hand theres no telling what is Xbox profit/loss and what is other products in the division either. My gut feeling is if anything Xbox profit is higher than division profit (in other words, rest of the division loses money).

What makes you think Sony has lost as much, if not more on the PS3 than MS did on the original xBox?

I mean the PS3 was sold at $600 for quite some time where as the original xBox had a dramatic price cut almost adjacent to its launch.

Then there's also the whole debacle MS had with the hardware suppliers, preventing the xBox from being made cost efficient, while Sony steadily have been cutting production costs for the PS3.

I don't think the PS3 has cost as much as the entire Xbox division, but the PS3 has pretty much wiped out any profits the PS2 made and eating into PS1 profits as well.

"According to a Kotaku report, Sony lost USD 2.16 billion in 2007 and USD 1.16 billion in 2008 on the PS3. The console allegedly cost over USD 800 to manufacture but which was sold in the USD 500-600 range when it was launched in 2006."

http://www.gamesindustry.biz/articles/ps3-pricing-caused-3-billion-loss-for-sony



 

OctaBech on 23 October 2009
bonkers555 said:
What is so impressive is that Xbox Live have become a cash cow for M$. I think Sony should start thinking about PSN a little.

Aren't they already by selling games, films, music(?) and that Home thingy?



XanderZane on 23 October 2009
Seece said:
Yeah here we go

http://www.guardian.co.uk/technology/gamesblog/2005/sep/28/xboxloses4bi

$4 bill lost on original Xbox

Yeah.. that's about right. They have been profitting with the Xbox 360 for more then 2 yrs now, so they are probably almost out of the RED by now. This definitely be in the positive before this generation is over. Sony has had hhuge losses the last 2 quarters. Not only in their gaming division, but also their electronics (HDTV, Blu-Ray, DVD, Camera, CD Players, Receivers, etc..) division has posted large losses. I don't know how they stay afloat. Maybe their movie studio is doing well enough. Anyway, Microsoft and the XBox 360 is on the right track for now.



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darthdevidem01 on 23 October 2009

its shipped not sold

EVEN SONY has said installed base in the past & the meaning on vGC was taken out to be shipped

The same thing here....its shipped

but even then 360 is UNDERTRACKED



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Troll on 23 October 2009

If a company says the Install base is a certain number then it has nothing to do with your reasoning why there is a discrepancy. You are trying to say that they are inflating their information for numbers sold because its shipped to retailers, but you really didn't read the article then, or at the very least the sentence that you were disputing.

Talk about self ownage.


He says almost at 34 mil, I wonder how close it is.



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Seece on 23 October 2009
XanderZane said:
Seece said:
Yeah here we go

http://www.guardian.co.uk/technology/gamesblog/2005/sep/28/xboxloses4bi

$4 bill lost on original Xbox

Yeah.. that's about right. They have been profitting with the Xbox 360 for more then 2 yrs now, so they are probably almost out of the RED by now. This definitely be in the positive before this generation is over. Sony has had hhuge losses the last 2 quarters. Not only in their gaming division, but also their electronics (HDTV, Blu-Ray, DVD, Camera, CD Players, Receivers, etc..) division has posted large losses. I don't know how they stay afloat. Maybe their movie studio is doing well enough. Anyway, Microsoft and the XBox 360 is on the right track for now.

Unfortunately Microsoft still have a few billion left before they're in the black. The 360 was a loss leader at the start and RROD cost $1 billion.

Like you said though the good news is the 360 has been profitiable for the last 2 years and everything is looking up, by the end of the gen it wouldn't surprise me if the Xbox franchise is profitable overall. Now that WOULD be a comeback.



 

newbie3 on 23 October 2009
Vetteman94 said:
newbie3 said:
Vetteman94 said:
So how much is the E&D Division in the red since the original Xbox came around? Its nice to see they are starting to pick up the pace diggin themselves out of that hole.

I dont remember anymore, but for what it's worth Sony has probably lost more with PS3 than MS has with the entire Xbox project (1 and 360). Or it should be close anyway.

 

The last two fiscal years (which end each June 30)the Xbox division profited 469m and 169m or around there. So about 650m profit. But remember before that they had a 1B write off just for RROD, so they haven't even made that back. They start off this fiscal year with a nice 312m profit now.

 

Then on the other hand theres no telling what is Xbox profit/loss and what is other products in the division either. My gut feeling is if anything Xbox profit is higher than division profit (in other words, rest of the division loses money).

Well, I do believe the number was close to $10B in the red for the Xbox and Xbox 360,  so I dont think it is as close as you think it is

I think it was only 4. something for Xbox. No way it's 6+ for 360.

 

Pretty sure PS3 has lost at least more than Xbox 1. People dont like to hear that. I think I've calculated PS3 losses at 6B+ before.



newbie3 on 23 October 2009
XanderZane said:
Seece said:
Yeah here we go

http://www.guardian.co.uk/technology/gamesblog/2005/sep/28/xboxloses4bi

$4 bill lost on original Xbox

Yeah.. that's about right. They have been profitting with the Xbox 360 for more then 2 yrs now, so they are probably almost out of the RED by now. This definitely be in the positive before this generation is over. Sony has had hhuge losses the last 2 quarters. Not only in their gaming division, but also their electronics (HDTV, Blu-Ray, DVD, Camera, CD Players, Receivers, etc..) division has posted large losses. I don't know how they stay afloat. Maybe their movie studio is doing well enough. Anyway, Microsoft and the XBox 360 is on the right track for now.

Nah, I think they were 2-3B in the hole with 360 before the 1B for RROD.

 

So even with 1B in profits the last 2.25 years, theyre still a long way from breaking even with 360.

 

They should be VERY profitable this quarter too. Being the holiday Q.

But after that, in fall of 010, they'll probably wanna do another price cut and introduce Natal too, so I dont know.

At least theyve stopped the bleeding, though.



haxxiy on 23 October 2009

31.4 + 2.1 = 33.5

33.5m shipped until September's end according to MS itself, look at their latest 2009 report - http://news.vgchartz.com/news.php?id=4487

There is no way MS got 500k X360's sold from Oct 1 and still had the usual 500k in stock. If such, MS shipped a million consoles in twenty days and thus it's averaging 333k a week...