9 replies to this topic

[Callipygous]

Don't really keep up with these things but was surprised:

http://www.pcmag.com...,1094549,00.asp

[JagMX]

i kinda find hard to believe that they are losing a BILLION a year. but whatever it is im sure its like losing 1$ to them

[PuddWakkr]

The more Xbox's M$ sells the more money it loses. Losses are a good thing in this case. Their computer OS division makes more money in a quarter than the Xbox could lose in a year.
http://www.zdnet.com...20271754,00.htm

[MacGurl]

It's amazing that a company like Microsoft can post an operating loss of US$348 million for a quarter. No matter how you look at it, when it comes to the end of a quarter, you want the least amount of loss as possible and that's quite a considerable loss. I thought they'd make more of a profit than what they last posted on Windows.

Either way, they're making enough on Windows to not have to worry about how much they're losing on the XBox. I'm just wondering how much longer the shareholders are going to keep quiet about it.

[NovaXpress]

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I'm just wondering how much longer the shareholders are going to keep quiet about it.

Exactly! So far they still believ in old Bill, but if the XBox is still losing money in 2 years the shareholders will scream. But the project may still continue and here is why:

In the DOJ agreement, Microsoft cannot sell PCs. They really wanted to. They also became worried that Sony and AOL could potentially partner up and produce an internet-ready video game system which would compete with Windows PCs. So to get around the agreement, Microsoft sells a PC without a keyboard, calls it a video game, and they're back in business. The XBox isnt about competing with the PS so much as it is about mainitaining Microsoft's position as an internet access and operating system provider. If the XBox Live sells enough, that pays for the console losses. The Live divsion is the whole profit key to the machine and the real reason for its existence. Bill doesn't want you to buy games so much as to buy online access.

[PuddWakkr]

NovaXpress said:

Quote

I'm just wondering how much longer the shareholders are going to keep quiet about it.

Exactly! So far they still believ in old Bill, but if the XBox is still losing money in 2 years the shareholders will scream. But the project may still continue and here is why:

In the DOJ agreement, Microsoft cannot sell PCs. They really wanted to. They also became worried that Sony and AOL could potentially partner up and produce an internet-ready video game system which would compete with Windows PCs. So to get around the agreement, Microsoft sells a PC without a keyboard, calls it a video game, and they're back in business. The XBox isnt about competing with the PS so much as it is about mainitaining Microsoft's position as an internet access and operating system provider. If the XBox Live sells enough, that pays for the console losses. The Live divsion is the whole profit key to the machine and the real reason for its existence. Bill doesn't want you to buy games so much as to buy online access.

You don't get internet access through XBL. I wish you did. I get my access through Time Warner. All you get is internet gaming. A whole different ballgame. There is no Xbox web browser. I wish there was. DC had both internet access (though I believe it was through AT&T) and a web browser and nobody bitches that Sega's system wasn't a gaming console but an attempt by Sega to get people to buy their machine for internet access.

I'm sure that shareholders will eventually scream. Then old Bill will tell them that all of this money that the Xbox is losing can be written of as a tax loss. All the time they are losing money and the more money they lose the larger their installed base becomes. Generating a quality brand name is very important in the video game business, ask sega. All the Xbox is is a tax break and an attempt to make M$ a name in the console market.

All of this is irrelevant. What matters to me is somewhere in that whole scheme something else happened. What you may ask. Oh they made some good games for the thing

[NovaXpress]

Quote

You don't get internet access through XBL. I wish you did. I get my access through Time Warner. All you get is internet gaming. A whole different ballgame. There is no Xbox web browser. I wish there was

Just wait, online gaming is step one. MSN-provided content is next. XBox is really competing with PCs and DVD players more than other game consoles. This is why the shareholders are looking at it differently and allowing some losses to pile on. It has to reach a breaking point within a year or two though.

Quote

DC had both internet access (though I believe it was through AT&T) and a web browser and nobody bitches that Sega's system wasn't a gaming console but an attempt by Sega to get people to buy their machine for internet access.

Nothing wrong with that at all. I'm just saying that XBox live has the real profit potential and that is why the shareholders are waiting to see how many people faithfully subscribe. With a couple million steady customers, the XBox might not be unprofitable after all.

[NE146]

NovaXpress said:

I'm just saying that XBox live has the real profit potential and that is why the shareholders are waiting to see how many people faithfully subscribe. With a couple million steady customers, the XBox might not be unprofitable after all.

Except for the fact that a percentage of Xbox users these days are foregoing XBLive and instead get online using xbconnect (ver. 3.0 just released yesterday) http://www.xbconnect.com/ and the number obviously keeps growing... As far as MSN provided content goes. That would be interesting to see what compelling "content" MS can provide for the xbox that people would be willing to fork out cash to see Now that's something I'd have to see happen to believe!

[Defiance131]

NE146 said:

Except for the fact that a percentage of Xbox users these days are foregoing XBLive and instead get online using xbconnect (ver. 3.0 just released yesterday) http://www.xbconnect.com/ and the number obviously keeps growing... As far as MSN provided content goes. That would be interesting to see what compelling "content" MS can provide for the xbox that people would be willing to fork out cash to see  Now that's something I'd have to see happen to believe!

I'm assuming xbconnect lets folks with modded Xboxes get online? If so, our Xbox might need a ... "tune up."

[Clock]

It is common knowledge that MS lose money on every Xbox sale and need to sell 4 or 5 games to each Xbox to break even.

But I always thought that the current Xbox is MS's first chess piece, It's just the pawn to establish the name and console internet gaming on a large scale.

The real war will begin on the next generation.

Sony know they have problems competing with the online side of things, and MS have the hardware and knowledge already in place (Servers etc)

Nobody knows what Nintendo have up their sleeves at this moment in time. I see them as the dark horse.

There is a rumour that MS will give the next console away for free..... which suggests monthly online fee's or something. But there is nothing to back this up.

I think Sony will make their next console more of a media centre which will have internet browsing etc but I don't think MS will follow suit, I feel they will go for a super console with amazing online capabilities for gaming only. I think they are going out of their way to not make a Xbox anything like a PC.