29 replies to this topic

[Shawn Sr.]

 moycon, on Tue Feb 21, 2012 8:41 PM, said:

 skaredmask, on Tue Feb 21, 2012 6:17 AM, said:

Don't alwats belive what you read.

Me thinks this holds especially true in regards to the rest of your post!

Microsoft gaming division has been making a profit since 2008, and yes that was after the 1 billion dollars they spent in 2007 to replace bricked 360's.
MS is certainly a profitable company though.
There has been rumor's that the 360 is going to have a touch screen controller similar to the Wii U.
I for one am hoping that is just another case of "not believing everything you read", because in my opinion that would be a huge mistake!

And Billl Gates stated right from the get go that he didn't intend to see a real profit from home consoles untill the 3rd Xbox machine. That was something he said early on when the XBOX 1 was still
getting it's feet wet. One thing you never want to do is bet agenst a Billionare cause they got the money to prove your wrong even if your right.

[skaredmask]

I guess I should me more technical when I post. I was exaggerating on the100 billion thing but I'll explain alittle more.

Both Microsoft and Nintendo have vary little to do with tne manufacturing of the Wii and xbox 360. Both systems are made by the same manufacturing companys IBM and ATI. they suffer the most when a claim/return happens even though the return is consider a loss of the contracted company.

This is also why the xbox 360 was still a profitable company during the xbox 360 red ring of death epidemic and is probly the main reason for Sony's loss of like $3 billion considering it manufacturers on top of development. Nintendo makes $6 dollars on ever Wii sold and Microsoft dosent make anything off there system. Instead Microsoft,Nintendo makes a profit off game developers who pay to make games on the Xbox,Nintendo. IBM and ATI make the most money-back on the consoles sold and there contracts I believe idk for sure though.

I'm not saying that this is a 100% whats going on with Nintendo but there could be some profit in there loss and no one will unless you work at Nintendo as CEO or some upper postion. I'm also speaking from the limted experience I had with Microsoft,Sony and Nintendo and mosaic reps.

Edited by skaredmask, Wed Feb 22, 2012 12:50 AM.

[moycon]

 skaredmask, on Wed Feb 22, 2012 12:22 AM, said:

Nintendo makes $6 dollars on ever Wii sold and Microsoft dosent make anything off there system.

Nah you're confused or you've been misinformed. There were all these crazy rumors of how much MS was losing on every 360 sold, but they were for the most part unfounded, occurring only very early in the life of the 360 and not for years and years like some people seem to think. Remember your own advice, don't read something and take it as gospel without doing at least some basic research.

Here you go....

http://www.bit-tech....a_profit_xbox/1
http://www.joystiq.c...e-per-360-sold/
http://www.techspot....0-hardware.html

This is but a small sample of articles written back the first year the 360 hit the market. There are plenty more to support the claims if you take the time to research. MS was making around $70 off every 360 sold pretty early in it's life.
Granted the MS game division didn't announce a profit until 2008, this had more to do with recouping marketing costs and dealing with the RRoD then selling any systems at a loss. More info about the 2008 fiscal year...

http://www.techspot....0-hardware.html

I will say I always heard Nintendo made more than $6 from every Wii sold. I was thinking they made more like $50, although, I can't say I really looked into the claim much. I guess if you times that $6 by the over 3 million Wii's sold the first year it was out, then that's a nice profit for sure.

[skaredmask]

Sorry but I'm not reffering to that at all. I was reffering to M$ licensing fees.This is how come they dont have to make money on the console.

from: Cnet.. http://news.cnet.com..._3-5827110.html

Microsoft is looking to squeeze a profit out of the gaming market with a new royalty program tied to the release of its next Xbox console.
Only accessory makers that get Microsoft's blessing and fork over a slice of their sales to the software maker will be able to produce Xbox 360 game pads, steering wheels, joysticks and other controllers.
In addition, in order to ensure that only authorized products connect to the new console, Microsoft is adding a security mechanism that will be available exclusively to those who sign a deal with the company, according to documents from a peripheral company filed with the SEC. The Xbox 360 console, announced in May, is slated to go on sale this holiday season.


News.context
What's new:
Microsoft has introduced a program to get royalties by restricting accessories for its upcoming Xbox 360 update to authorized makers only.
Bottom line:
The program could be part of Microsoft's goal of turning a profit with the console, something it wasn't able to do with the previous Xbox.


Also reffering to section 9.5 of the XBOX 360 PUBLISHER LICENSE AGREEMENT


Software Title License. Subject to the prior approval of Publisher (not to be unreasonably withheld or delayed), Publisher grants Microsoft a fully-paid, royalty-free, worldwide, non-exclusive license (i) to publicly perform theSoftware Titles at conventions, events, trade shows, press briefings, public interactive displays and the like; (ii) to use the title of the Software Title, and screen shots from the Software Title, in advertising and promotional material relating to Xbox 360 and related Microsoft products and services, as Microsoft may reasonably deem appropriate; (iii) distribute Demo Versions with the Official Xbox Magazine , as a standalone product with other demo software; and (iv) distribute SoftwareTitle trailers via xbox.com. Publisher may also select Online Content for inclusion in public interactive displays and/or compilation demo discs published by Microsoft, in which case Publisher grants Microsoft a fully-paid, royalty-free, worldwide, transferable, sublicenseable license to broadcast, transmit, distribute, host, publicly display, reproduce and manufacture such selected Online Content as part of public interactive displays and compilation demo discs, and to distributeand permit end users to download and store (and, at Publisher’s discretion, to make further copies) such Online Content viapublic interactive displays.

From wiki: Despite the relatively strong sales figures, Microsoft's gaming division was losing money. Through 2005, the Xbox gaming division had lost over $4 billion,^[185] However, Microsoft expected the console to start making money in 2008.^[186] due to a loss leader market strategy of selling consoles below cost in order to obtain market saturation and gain profits on software and peripherals with a much higher profit margin.^[187][188] Additionally, Microsoft took a charge of $1 billion dollars on its June 2007 Income Statement to account for the cost of replacing bricked Xbox 360s


Also about the Wii. http://www.gamespot....ii-sold-6201833

Edited by skaredmask, Wed Feb 22, 2012 3:32 AM.

[onlysublime]

 skaredmask, on Wed Feb 22, 2012 12:22 AM, said:

I guess I should me more technical when I post. I was exaggerating on the100 billion thing but I'll explain alittle more.

Both Microsoft and Nintendo have vary little to do with tne manufacturing of the Wii and xbox 360. Both systems are made by the same manufacturing companys IBM and ATI. they suffer the most when a claim/return happens even though the return is consider a loss of the contracted company.

This is also why the xbox 360 was still a profitable company during the xbox 360 red ring of death epidemic and is probly the main reason for Sony's loss of like $3 billion considering it manufacturers on top of development. Nintendo makes $6 dollars on ever Wii sold and Microsoft dosent make anything off there system. Instead Microsoft,Nintendo makes a profit off game developers who pay to make games on the Xbox,Nintendo. IBM and ATI make the most money-back on the consoles sold and there contracts I believe idk for sure though.

I'm not saying that this is a 100% whats going on with Nintendo but there could be some profit in there loss and no one will unless you work at Nintendo as CEO or some upper postion. I'm also speaking from the limted experience I had with Microsoft,Sony and Nintendo and mosaic reps.

wow, you spent a lot of effort to wrap that BS in a nice package...