Author Topic: I need Proff XBOX loses money on systems!!! (Read 9578 times)

Smashman23 · « **on:** May 22, 2003, 09:23:08 AM »

Hey I have a bet with my friend that Xbox loses money on every system they sell and that they make them becuase of sofware sales just like every sysytem. I need some sort of proof though to win the bet. If anyone knows of any articles that prove this fact than please post web link thanx!!!!!!!!!!!!

ruby_onix · « **Reply #1 on:** May 22, 2003, 12:39:30 PM »

http://zdnet.com.com/2100-1104_2-1001220.html

Grey Ninja · « **Reply #2 on:** May 22, 2003, 04:05:02 PM »

Can you tell me who bet you that the Xbox didn't lose money so that I can point and laugh in his general direction?

mouse_clicker · « **Reply #3 on:** May 22, 2003, 04:06:55 PM »

Initially they had a huge loss on systems (something like $100 each, I think), but since then they've moved production to China (like Sony and nintendo) where you get REAL cheap sweatshop labor. I was under the impression they started making a profit on systems sold since then but I could be wrong.

BrianSLA · « **Reply #4 on:** May 22, 2003, 09:05:26 PM »

You also have to realize that the price of the parts inside the Xbox drops too. A Xbox produced at launch costs more than an Xbox produced today. The price of the parts goes down, productivity increases as time goes on and the kinks in the plant gets worked out, Xboxes produced at launch had fans while current Xboxes have heat sinks, etc.

Stimutacs Addict · « **Reply #5 on:** May 23, 2003, 12:05:54 PM »

Quote
Originally posted by: Smashman23
Hey I have a bet with my friend that Xbox loses money on every system they sell and that they make them becuase of sofware sales just like every sysytem. I need some sort of proof though to win the bet. If anyone knows of any articles that prove this fact than please post web link thanx!!!!!!!!!!!!

Microsoft loses money on the Xbox's they sell... Microsoft is the company, Xbox the product

manunited4eva22 · « **Reply #6 on:** May 24, 2003, 06:48:07 AM »

hey i have a bet with my firend that you have no life and need to shut up, thjanks

AERO · « **Reply #7 on:** May 26, 2003, 12:27:58 PM »

If only I could think of a scam to trade in my old xbox for a new quieter one. Background noise-free dvd bliss!

Hostile Creation · « **Reply #8 on:** May 26, 2003, 01:53:24 PM »

Hey, manunited, did you win that bet?

manunited4eva22 · « **Reply #9 on:** May 26, 2003, 03:19:40 PM »

Actually my friend wrote that and he was betting against me, we called the bet a draw, but I still shelled out 20 dollars, go figure.

Termin8Anakin · « **Reply #10 on:** May 27, 2003, 01:54:40 AM »

I could be wrong but they:
-Lose money more and more everytime the lower the price.
-Lose money cause of the DVD player.
-Lose money from too many free game giveaways and other packages.
-Lost LOTS of money cause they bought Rare.
-Lose money cause they are trying very hard to try and get a major foot into the Japanese market, and failing.
-Losing money cause they are constantly changing the parts in the system design, eg, the HDD and the fan.
-Losing money simply cause some people don't wanna help Bill Gates get richer (like myself).

Cube323 · « **Reply #11 on:** May 31, 2003, 10:56:04 AM »

Just read the book "Opening the Box." It goes in to explicit detail on the fact that in the begining, Microsoft was actually losing around $140 per system. Now they have cheapened their manufacturing, so that loss is now just above $100 per system. Also according to Wall Street Journal and the author of "opening", Micro$oft has lost over ONE BILLION DOLLARS since the systems launch. And they call X-box a "success," Lmfao!!!

Doubt my claims? Please read the book, its available in almost any bookstore. Hope this helps

Termin8Anakin · « **Reply #12 on:** June 01, 2003, 05:00:27 PM »

There's actually a book about it?
Geez...

AERO · « **Reply #13 on:** June 01, 2003, 05:29:10 PM »

Well those are probably correct except the last two.

Changing the manfacturing componets make the system cheaper. Anyone who doesn't buy one for that reason isn't that critical to the systems success.

dmbfan755 · « **Reply #14 on:** June 12, 2003, 02:33:26 PM »

i say we all buy an xbox and put them out of business!

Termin8Anakin · « **Reply #15 on:** June 12, 2003, 05:27:52 PM »

Hahaha! Yeah!
They won't know what the hell you do!
Don't sell Xbox and lose heaps of money, or sell HEAPs of Xboxes and lose billions more money, then exit the console race!

*heads to EB*
*turns back*
actually no. I don't have money to buy one.

nitsu niflheim · « **Reply #16 on:** June 13, 2003, 05:04:33 AM »

Microsoft wants to cut manufacturing costs on the Xbox Here it states about M$ losing money on the Xbox.

AERO · « **Reply #17 on:** June 13, 2003, 12:14:14 PM »

The guy who wrote that headline is a genious. Who would have thought?!

p.s.

Quote
Even with the use of some less expensive parts, and the moving of the Hungarian factory to China, where labor is much cheaper

That was mildly depressing.

Termin8Anakin · « **Reply #18 on:** June 13, 2003, 06:02:25 PM »

Well, Smashman, that's your proof right there, in Nitsujdark's article.

EDIT:
Just read the article and: WAHAHAHAHA!
The best thing about the article was...well...all of it!

- losses of $900 Millions so far DO NOT include R&D of the XBox, marketing or the buying of studios by M$ *cough* Rare *cough*.
- losing $150-$150 on console sold, depsite use of cheap parts and cheap labour; price drops only mean more and more losses.
-can't afford to make any more price drops.
- if M$ loses too much that they can't pull themselves out, shareholders may demand M$ pull out of console business!

HAHAHAHA!
*wipes tears from eyes*

AERO · « **Reply #19 on:** June 13, 2003, 07:06:31 PM »

Yeah that was pretty funny. I'd like to see microsoft spend so much money that they can't pull themselves out. For that to happen, they would be paying me to take the system and games. But hey, as long as they keep spreading the wealth its cool. I'd be more pissed if they turned into a company that doesn't understand you need to spend money to make money. *cough*

Termin8Anakin · « **Reply #20 on:** June 15, 2003, 05:21:08 PM »

Let the general public know about this!
Get them to buy Xboxs by the truck full!
Get Microsoft outta the console business!
Hahaha.
That's a really weird predicament they're in isn't it.

mouse_clicker · « **Reply #21 on:** June 17, 2003, 01:53:44 PM »

Guys- if a company loses money on a product, they lose it when they produce the thing. If it's sold afterward, they're making part of that loss back up. So going by your thinking, you SHOULDN'T buy an XBox because that way MS loses $280 rather than just $100.

Termin8: You've got one thingwrong- the $900 million figure is what MS *thought* they'd lose after 5 years. They've ACTUALLY lost close to $500 million so far, after a year and a half, and are expected to lose more than $1 billion by the end of said 5 years.

Round Eye · « **Reply #22 on:** June 18, 2003, 08:03:06 AM »

Microsoft expected to lose money on the system. They are trying to buy a foot in the door and are succeeding in North America. They are failing misserably in Japan. Have you seen the system? I don't think it would fit in most japanese apartments. Microsoft should have embraced its hugeness and made it into a couch, or maybe a coffee table.

They expected to lose money but I don't think they expected the Japanese market to be so hard to crack.

Termin8Anakin · « **Reply #23 on:** June 19, 2003, 01:31:56 AM »

MS got their foot in the door.
Let's kick it out!
*whack! whack!*

I won't be surprised if MS go all out Japanese and create some puny little credt card sized console, with a weird name like 'J-Box !21698!' or something.
They expected to lose money yes, but why? Why did they even make a console that's going to lsoe money? Why not try to fix it up to minimise the loss, as the SHOULD have done before releasing it?

MY GOD! I'm thinking of ways to save MS money?

ARRRGH!

Just keep goin the way you are guys! You're doing great!

Mario · « **Reply #24 on:** June 19, 2003, 01:42:43 AM »

Quote
if M$ loses too much that they can't pull themselves out, shareholders may demand M$ pull out of console business!

OMFG THAT JUST GAVE ME A NINTENDORGASM!!! ...ahem.

News:

Author Topic: I need Proff XBOX loses money on systems!!! (Read 9578 times)