Topic: GameCube Outselling PS2 and Xbox in America

[KDR_11k]

Microsoft decided they want to monopolize the console market, so they put together the XBox. The first one wasn't really meant to be this all-dominating device. It was more or less an experiment. They will try again. And again. Until the beancounters stop them. I expect that to happen shortly after XBox Next is released. Imagine an ultimatum like "Okay, this one isn't selling well. You say that's because it's a first. Well, we give you one more chance, if we don't see any increase in profit by then I'm afraid we cannot afford further experiments in this direction".

BTW, why complain about connectivity? Noone forces you to use it. I don't bother with it myself and haven't encountered any problems so far.

[thecubedcanuck]

"And MS lost nothing. True they didnt make as much as nintendo but they still made profit."

this couldnt be any further from the truth.

[phil1984]

Quote
Originally posted by: OO7craft

Look in the dictionary for what?  Change my statement? Why? Regardless of what the definition of the word profit is, I was asking if you think that losing billions of dollars just to make a $1 profit is worth it.  Personally, I think that's plain stupid.

Doctor Evil: Why make billions when we can make...millions?

This comment is actually pretty stupid when you think about it 007craft.  If you have made $1 profit then you havn't
lost Billions of Dollars you have made $1.  Sure you may have to spend Billions of dollars to get that $1 profit but you havn't lost those Billions of dollars to make a profit.  You simply have a revenue of Billions of Dollars + 1 hence giving you $1 profit.....  Damn this is making my head spin.....

Getting back on topic, this is really really good news for GameCube.  Nintendo may even catch the Xbox in the USA before this console war is over.....

[OO7craft]

Quote
Originally posted by: phil1984

Quote
Originally posted by: OO7craft

Look in the dictionary for what?  Change my statement? Why? Regardless of what the definition of the word profit is, I was asking if you think that losing billions of dollars just to make a $1 profit is worth it.  Personally, I think that's plain stupid.

Doctor Evil: Why make billions when we can make...millions?

This comment is actually pretty stupid when you think about it 007craft.  If you have made $1 profit then you havn't
lost Billions of Dollars you have made $1.  Sure you may have to spend Billions of dollars to get that $1 profit but you havn't lost those Billions of dollars to make a profit.  You simply have a revenue of Billions of Dollars + 1 hence giving you $1 profit.....  Damn this is making my head spin.....

Getting back on topic, this is really really good news for GameCube.  Nintendo may even catch the Xbox in the USA before this console war is over.....

um id didnt say that... your quoting the other guy with my name.. look back.. what your saying is what I was trying to say to him

[jasonditz]

Except for that they didn't make as much as they spent on the Xbox, so "profit" is a totally inappropriate word to use to describe what happened.

[OO7craft]

yes but I was quoted for what someone else said...

and i was trying to poin out to the other guy that if u lose 1 billion dollars and make only 1 dollar profit u in reality have made 1 billion and 1 dollars

[Myxtika1 Azn]

Quote
Originally posted by: OO7craft
yes but I was quoted for what someone else said...

and i was trying to poin out to the other guy that if u lose 1 billion dollars and make only 1 dollar profit u in reality have made 1 billion and 1 dollars

Ok, I understand what you mean now.  It's like Nintendo spending $100 to make a $50 profit off the Cube, and MS spending $400 to make -$100 on the Box (exaggeration -- I'm not sure what production cost was when both consoles came out).

The thing though, is that you would only have $1.  Go through all that just to make one extra dollar than you started out with? Bah!  If that's good enough for you and you think it's worth it, then so be it.  I, on the other hand, would rather go with Nintendo and make hundreds of millions of dollars in profit.

[manunited4eva22]

Your right about that point, but thats only a technicality in a bigger picture.  Microsoft hasn't made a 1/1000000000000000000 of a cent from xbox.  They have in fact lost several hundred million dollars.  Revenues are how much they make before accounting for expenses.  Their revenues thus far have always been grossly smaller than their expenses.

As for Myamoto being in it for the money, give me a break.  If Shiggy left Nintendo do you have any idea the amount of money companies would offer to hire him?  He could very very easily quadruple his income in the first offer. At that point it's not 'for the money,' it's for the art.

[kennyb27]

Profit = Revenue - Expense

Microsoft has not made a profit on Xbox and especially not on Xbox Live, which I'm pretty sure has had a profit of $-2 million dollars (yeah, that's a negative profit).

[thecubedcanuck]

MS does make a boat load on it PC products, and losing money on the Box is actually not a bad thing from a tax base stand point.

[jasonditz]

If Microsoft is trying to lose money I can think of a lot better ways.

[thecubedcanuck]

I didnt say they are trying to lose money. What I am saying is that for a company of MS's size, losing money in a few areas isnt as painful to the bottom line as some may think. Loses in one area can actually be made up for in the tax savings on the overall picture.
I doubt MS plans on losing in the end, I wouldnt doubt if this X-box gamble is givin a ten year window.

[jasonditz]

Quote
Originally posted by: thecubedcanuck
I didnt say they are trying to lose money. What I am saying is that for a company of MS's size, losing money in a few areas isnt as painful to the bottom line as some may think. Loses in one area can actually be made up for in the tax savings on the overall picture.
I doubt MS plans on losing in the end, I wouldnt doubt if this X-box gamble is givin a ten year window.

That's a good point. Microsoft did pay upwards of $4 billion in taxes last year.

Still, considering they've fallen from 2nd to 3rd in sales in the US and are still practically nonexistant overseas its gotta be frustrating to see how little return they're getting for eating hundreds of millions of dollars in losses.

[thecubedcanuck]

Not if you look at it over, say a 10 year period.
This is year 2, they have sold almost the same amount of consoles as a long time giant (NIN), from that perspective all isnt lost.

[jasonditz]

Yeah, but if you compare it year over year they appear to be losing ground, not gaining.

[ghostVi]

One thing's good for the xbox, and that's brand recognition, everyone knows what an xbox is, most of the people think it's cool (nothing special there for me... $180 ... NO way, that's 5 (five!) GC games)... IMO that's what all those money were thrown at, financially there is no hope for them to recover what's lost until next gen, it's too close.

While I don't believe the situation fits the original plan (which was said to be a 5-year plan AFAIR.. don't quote me on this though) I'm sure they're going to use what they have, and give a shot with an even now starting to get popular xbox2. And a real console this time (designed as a console, from the grounds up, cost-effective, while maintaining competitive power).

[nolimit19]

did someone complain that nintendo is in it for the money....the nerve of a business to want to make money. microsoft owns the world and you complain about nintendo making money.....batty, quite batty.

[VideoGamerX]

Yes, let's scold all of those capitalist freeloaders living off our backs and draining us of our money while providing products we couldn't possibly get our hands on without them.  

[Renny]

They've said the Xbox is the start of a 20-year assault on your living room. They want to own you, and they have no qualms over boasting this.

[dee kay]

if only they can keep up the good sales during christmas
and suked in to rare ware hhahaahhahahahah