Microsoft lost $4B on Xbox?!

[JEDI]

"Analysts have estimated that Microsoft had operating losses of more than $4 billion from the first Xbox, which it introduced nearly four years ago."

CNN

i wonder if they'll stay in the gaming market if xbox 360 isnt sucessful.

hm.. Is Nintendo profitable? or is it going the way of Sega?

 

[rh71]

xbox hardware = lose money
xbox software/services = gain money

sound right ?

 

[bleeb]

NINTENDO RULES. SEGA IS AWESOME. MICRO$OFT BLOWS.

 

[KillyKillall]

They stayed so that they can still build the name out there for now and incorporate it into other businesses later. THey'll stay...

 

[iamwiz82]

I thought they did that because they made up for system prices in the games?

 

[mchammer187]

is this after games and accessories or just a 4B loss on the consoles?

if it is after everything than all I can say is dayum

 

[nakedfrog]

Yes, Nintendo is profitable.

 

[OutHouse]

isnt XBox the most popular console? how did they loose that money?

 

[Train]

Overall Xbox (games and hardware) are at a loss, but its not like MS needs money right now. losing an avg of $1bn a year to a project doesn't even raise an eyebrow at MS.

Thier main goal the first few years is to gain a solid share of the market. They will likely keep this goal as thier #1 priority for a while before they start thinking about thier bottom line.

They are also looking ahead to integrate Xbox users with other MS products. Look for the MS media OS to be the glue between Consoles, PC's, TV's, DVD's/VCR's, microwave, toaster, fridge, phone, dildo, etc. MS wont rest until your whole house is linked by computer with MS software running it all.

 

[dxkj]

Originally posted by: rh71
xbox hardware = lose money
xbox software/services = gain money

sound right ?

This man knows what he is talking about.


The real numbers need to show where they are at net....


Plus.... its easy to see the first entrance into the market is going to possibly lose money... but as they gain marketshare and setup for the next generations, they are more likely to become profitable.

 

[vshah]

Originally posted by: Citrix
isnt XBox the most popular console? how did they loose that money?

ps2>xbox>gamecube in terms of sales

and so what...its a good investment to make in what will be a huge market (home entertainment/connectivity) in the future. they're building their name.

 

[dxkj]

Originally posted by: Train
Overall Xbox (games and hardware) are at a loss, but its not like MS needs money right now. losing an avg of $1bn a year to a project doesn't even raise an eyebrow at MS.

Thier main goal the first few years is to gain a solid share of the market. They will likely keep this goal as thier #1 priority for a while before they start thinking about thier bottom line.

They are also looking ahead to integrate Xbox users with other MS products. Look for the MS media OS to be the glue between Consoles, PC's, TV's, DVD's/VCR's, microwave, toaster, fridge, phone, dildo, etc. MS wont rest until your whole house is linked by computer with MS software running it all.

Sorry Boss, I was late for work today because my house crashed and it took 8 reboots to get it running again.

 

[sash1]

Originally posted by: Citrix
isnt XBox the most popular console? how did they loose that money?

are you joking?
worldwide:
ps2 >>> xbox > gamecube

 

[eelw]

Originally posted by: rh71
xbox hardware = lose money
xbox software/services = gain money

sound right ?

But neither MS or Sony made enough money on SW sales to out pace the amount of money spent on HW for the past several quarters. While Nintendo on the otherhand, is still making a profit on HW sales and making far more money on their 1st party titles than both Sony or MS. But yeah, 3rd party sucks for Nintendo though.

 

[spidey07]

Originally posted by: Train
Overall Xbox (games and hardware) are at a loss, but its not like MS needs money right now. losing an avg of $1bn a year to a project doesn't even raise an eyebrow at MS.

Thier main goal the first few years is to gain a solid share of the market. They will likely keep this goal as thier #1 priority for a while before they start thinking about thier bottom line.

They are also looking ahead to integrate Xbox users with other MS products. Look for the MS media OS to be the glue between Consoles, PC's, TV's, DVD's/VCR's, microwave, toaster, fridge, phone, dildo, etc. MS wont rest until your whole house is linked by computer with MS software running it all.

yep. They saw a market and are trying to own it.

So even taking a huge loss, they will not jump out of this potentially huge customer base - every home and home electronic/appliance.

 

[DaShen]

Time to buy Microsoft stocks while people are scared of this, and then watch as people realize this isn't net profit.

 

[Train]

my GF asked my last xmass if I wanted an XBox, I was surprised she even thought of it, as I am not a console gamer (play a few PC games though, not that she would know the difference)

I said no but I asked her why she though of getting me an xbox and not a playstation, she replied:

"Whats a playstation? All I know is this xbox thingy is supposed to be what all the guys want for xmass this year"

Money well spent by Microsoft. Brand awareness can be a very valuable thing

 

[duragezic]

Originally posted by: dxkj

Originally posted by: Train
Overall Xbox (games and hardware) are at a loss, but its not like MS needs money right now. losing an avg of $1bn a year to a project doesn't even raise an eyebrow at MS.

Thier main goal the first few years is to gain a solid share of the market. They will likely keep this goal as thier #1 priority for a while before they start thinking about thier bottom line.

They are also looking ahead to integrate Xbox users with other MS products. Look for the MS media OS to be the glue between Consoles, PC's, TV's, DVD's/VCR's, microwave, toaster, fridge, phone, dildo, etc. MS wont rest until your whole house is linked by computer with MS software running it all.

Sorry Boss, I was late for work today because my house crashed and it took 8 reboots to get it running again.

Maybe that's a joke, but personally ever since I switched to 2000 and later XP about 4 years ago, I've had only a FEW OS-related crashes. Usually it's something else that hoses, and if an app does fail it never brings down the whole system. So I don't have worries about reliability in future MS products... granted they could be better, but for what they do they are pretty good at it.

 

[Mrvile]

Nintendo can't keep up in the power market against competitors like Sony and Microsoft, so they stay with the cool, innovative stuff like the DS and the recently unveiled Revolution controller. I'm now looking forward to the Revolution more than ever (and this is even before any games are shown). I'm sure they'll stay strong in the gaming industry.

 

[dabuddha]

Isn't that how much interest Billy boy earns every minute? :laugh:

 

[Inspector Jihad]

Originally posted by: Mrvile
Nintendo can't keep up in the power market against competitors like Sony and Microsoft, so they stay with the cool, innovative stuff like the DS and the recently unveiled Revolution controller. I'm now looking forward to the Revolution more than ever (and this is even before any games are shown). I'm sure they'll stay strong in the gaming industry.

yeah, if they find a niche and stay profitable,they'll stick around...but thtey certainly cannot afford to lose so much money on hardware that sony and microsoft do without batting an eye.

 

[yllus]

This is about fighting a battle for TV-top console domination over the long haul, not making a profit in four years.