Author Topic: Xbox loses $380 million for Microsoft  (Read 5711 times)

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Offline epicac

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Xbox loses $380 million for Microsoft
« on: February 03, 2003, 05:47:01 PM »
Xbox loses $380 million for Microsoft

It's amazing how well Xbox can do over the holidays yet still lose so much money. Still, such losses are only a ding in the Microsoft Corporation. Nintendo may have had more modest sales, but at least they're not losing hundreds of millions of dollars.

Offline Mingesium

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Xbox loses $380 million for Microsoft
« Reply #1 on: February 03, 2003, 06:02:26 PM »
its a simple equation
a = number of xbox sold
b = how much they lose per xbox
c = amount $ loss

ab = c

as a goes up so does c.

The question is will Microsoft ever make a profit off of XBox?

I don't think so. It clear they are giving away Xboxes so they have a fan base for XBox2.

Offline RickPowers

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Xbox loses $380 million for Microsoft
« Reply #2 on: February 03, 2003, 06:18:56 PM »
That's spurious math, Ming.

Actually, while Microsoft is losing money on the Xbox, that's not where all of this loss is coming from.  It's Microsoft's Home Entertainment group that is losing the money, which includes things like the former Ultimate TV group.  There's also the persistent rumor that Microsoft's Home Entertainment group budget is being used to subsidize a major Japanese development house, and keep them afloat.  Don't know who it might be (though the rumor is Sega), but that would explain why the loss keeps getting bigger when the Xbox must be getting cheaper to manufacture.

(The rumor of Microsoft giving money to Sega would certainly explain two of Sega's titles being packed in ...)
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Offline deminisma

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Xbox loses $380 million for Microsoft
« Reply #3 on: February 04, 2003, 12:04:35 AM »
Sega and Microsoft have always been close, so it would make sense. Segasoft worked directly with Microsoft employees with some of their PC titles, Dreamcast could use WinCE technology, and as a result, every Dreamcast contained the Windows logo on it. However, it is also odd in that i've always seen Sega as the Apple of the videogame industry. Innovative, but crushed by competitor's dirty tactics, bad luck and bad business decisions. Mind you, Microsoft devoured a portion of Apple too.

Offline Termin8Anakin

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Xbox loses $380 million for Microsoft
« Reply #4 on: February 07, 2003, 05:14:27 PM »
Well, Steve Jobs doesn't seem to be complaining. He does own Pixar after all (his office is there - check the Monster's Inc DVD: Pixar tour!), and they are brining in loads of cash.

Have Microsoft announced anything in terms of any new console? Sony have, and Nintendo have, so have Microsoft?
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Offline yrrab436

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Xbox loses $380 million for Microsoft
« Reply #5 on: February 07, 2003, 06:18:51 PM »
I'm pretty sure that Nintendo has, and Sony has, and Microsoft has.

Offline Mike C

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Xbox loses $380 million for Microsoft
« Reply #6 on: February 11, 2003, 12:23:55 PM »
I don't think they car about lsoing too much money at this stage.  It will make itself up when all these new Xbox owners start buying software and accessories because everyone knows thats where the real money is. MS is just investing for the future
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Offline oSiRiS

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Xbox loses $380 million for Microsoft
« Reply #7 on: February 12, 2003, 04:42:55 PM »
Yes, please learn to speak english. Your intent is to specify the company, not the people within it specifically, so refer to the company in the singular. KTHXBYE NOOB LOLOLOL
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Offline EggyToast

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Xbox loses $380 million for Microsoft
« Reply #8 on: February 14, 2003, 09:10:59 AM »
I think Microsoft is a little short-sighted if it thinks that installed userbase of their current console will predict installed userbase of any future console.  It's not like Windows, which is simply a software upgrade.  Especially since Bill Gates has said that he hopes the next Xbox includes even more PC-like features, including web browsing (no doubt through their MSN network).

That said, I think Microsoft is toning down the amount of money it throws into the Xbox project lately.  There have been plenty of companies that are available for purchase by console manufacturers that Microsoft would've purchased a year ago, but are sitting on their thumbs about now.  Notably the Vivendi groups.

Anyway, people don't buy new consoles just because they're released -- they buy them because there were a lot of games they liked for previous consoles, and those games are being released on the new consoles too.  Right now, Microsoft is still behind in game development -- good games are coming out, but at a rather slow pace.  Most Xbox people I've spoken to are simply excited over 2 games (Fable and Halo2), both of which lack a definitive release date.  While that's fine for a new console, it's not good for any prediction of future sales.  I mean, compare the install base of the SNES to the N64.  And the Genesis to, well, every sega console afterwards.

Offline BrianSLA

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Xbox loses $380 million for Microsoft
« Reply #9 on: February 14, 2003, 07:16:45 PM »
>>  think Microsoft is a little short-sighted if it thinks that installed userbase of their current console will predict installed userbase of any future console. <<

Well it worked for the PS2 and Nintendo. The Xbox is just the first volley of Microsoft's entry into the digital living room.

>> Especially since Bill Gates has said that he hopes the next Xbox includes even more PC-like features, including web browsing (no doubt through their MSN network).<<

The PS3 is supposedly thinking about having TIVO like capabilities and Sony is also getting into the digital living room too.

>> I think Microsoft is toning down the amount of money it throws into the Xbox project lately.... the Vivendi groups <<

Microsoft is supposedly in the lead to buy out Vivendi. Negotiations are ongoing / or done with a possible E3 announcement.

The Xbox is well ahead of predictions. Microsoft never thought they'd be #1 or that they would make a profit this generation... I really don't think they even thought they would be #2 either... but it happened.  

Offline Mario

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Xbox loses $380 million for Microsoft
« Reply #10 on: February 15, 2003, 10:52:25 AM »
Quote

The PS3 is supposedly thinking about having

The PS3 can THINK! WOW, i wonder what Nintendo has in store to counter this, maybe a console that can make you breakfast....

Offline BrianSLA

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Xbox loses $380 million for Microsoft
« Reply #11 on: February 15, 2003, 01:14:16 PM »
>> The PS3 can THINK! <<

 Well they did talk about having that super-duper whateveritsnameis chip in it. Just kidding.  

Offline Samuslink

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Xbox loses $380 million for Microsoft
« Reply #12 on: February 15, 2003, 02:18:43 PM »
Microsoft is NOT #2. I get tired of telling this to people. Add the sales of GC and GBA. This will make Nintendo not only #2, but darn close to sony in sales.  Besides, even if you were to count only the sale of GC, it would be pretty close (M$ and Nintendo).  

Xbox loses $380 million for Microsoft
« Reply #13 on: February 15, 2003, 03:59:33 PM »
Quote

Originally posted by: epicac
Xbox loses $380 million for Microsoft
.


GOOD!

 
it was time for a change.

Offline nolimit19

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Xbox loses $380 million for Microsoft
« Reply #14 on: February 15, 2003, 06:10:37 PM »
the only place m$ is #2 in is the us.......and maybe europe. its a known fact it isnt #2 where it really counts........TOTAL WORLD WIDE SALES!!!
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Offline rodtod

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Xbox loses $380 million for Microsoft
« Reply #15 on: February 17, 2003, 04:36:30 PM »
I remember Microsoft saying they weren't expecting to make a profit on the Xbox until 2005. By then they'd be churning out enough units to make manufacturing costs low enough...not to mention the components would be cheaper by then.

How long is the Xbox's life supposed to be? Wouldn't they release Xbox2 by '05?
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