Gaming Forums => General Gaming => Topic started by: Smashman23 on May 22, 2003, 09:23:08 AM
Title: I need Proff XBOX loses money on systems!!!
Post by: 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!!!!!!!!!!!!
Title: RE: I need Proff XBOX loses money on systems!!!
Post by: ruby_onix on May 22, 2003, 12:39:30 PM
http://zdnet.com.com/2100-1104_2-1001220.html
Title: I need Proff XBOX loses money on systems!!!
Post by: Grey Ninja 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?
Title: I need Proff XBOX loses money on systems!!!
Post by: mouse_clicker 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.
Title: I need Proff XBOX loses money on systems!!!
Post by: BrianSLA 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.
Title: I need Proff XBOX loses money on systems!!!
Post by: Stimutacs Addict 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
Title: RE: I need Proff XBOX loses money on systems!!!
Post by: manunited4eva22 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
Title: I need Proff XBOX loses money on systems!!!
Post by: AERO 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!
Title: I need Proff XBOX loses money on systems!!!
Post by: Hostile Creation on May 26, 2003, 01:53:24 PM
Hey, manunited, did you win that bet?
Title: RE: I need Proff XBOX loses money on systems!!!
Post by: manunited4eva22 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.
Title: RE: I need Proff XBOX loses money on systems!!!
Post by: Termin8Anakin 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).
Title: RE: I need Proof XBOX loses money on systems!!!
Post by: Cube323 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
Title: RE: I need Proof XBOX loses money on systems!!!
Post by: Termin8Anakin on June 01, 2003, 05:00:27 PM
There's actually a book about it? Geez...
Title: I need Proof XBOX loses money on systems!!!
Post by: AERO 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.
Title: I need Proof XBOX loses money on systems!!!
Post by: dmbfan755 on June 12, 2003, 02:33:26 PM
i say we all buy an xbox and put them out of business!
Title: RE: I need Proof XBOX loses money on systems!!!
Post by: Termin8Anakin 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.
Title: I need Proof XBOX loses money on systems!!!
Post by: nitsu niflheim on June 13, 2003, 05:04:33 AM
Title: I need Proof XBOX loses money on systems!!!
Post by: AERO 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.
Title: RE: I need Proof XBOX loses money on systems!!!
Post by: Termin8Anakin 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*
Title: I need Proof XBOX loses money on systems!!!
Post by: AERO 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*
Title: RE: I need Proof XBOX loses money on systems!!!
Post by: Termin8Anakin 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.
Title: I need Proof XBOX loses money on systems!!!
Post by: mouse_clicker 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 $1 billion by the end of said 5 years.
Title: I need Proof XBOX loses money on systems!!!
Post by: Round Eye on June 18, 2003, 08:03:06 AM
Microsoft expected to lose money on the system. They are trying to buy a foot in the door and are succeeding in North America. They are failing misserably in Japan. Have you seen the system? I don't think it would fit in most japanese apartments. Microsoft should have embraced its hugeness and made it into a couch, or maybe a coffee table.
They expected to lose money but I don't think they expected the Japanese market to be so hard to crack.
Title: RE: I need Proof XBOX loses money on systems!!!
Post by: Termin8Anakin on June 19, 2003, 01:31:56 AM
MS got their foot in the door. Let's kick it out! *whack! whack!*
I won't be surprised if MS go all out Japanese and create some puny little credt card sized console, with a weird name like 'J-Box !21698!' or something. They expected to lose money yes, but why? Why did they even make a console that's going to lsoe money? Why not try to fix it up to minimise the loss, as the SHOULD have done before releasing it?
MY GOD! I'm thinking of ways to save MS money???? ARRRGH!
Just keep goin the way you are guys! You're doing great!
Title: I need Proof XBOX loses money on systems!!!
Post by: Mario on June 19, 2003, 01:42:43 AM
Quote if M$ 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.
Title: I need Proof XBOX loses money on systems!!!
Post by: thecubedcanuck on June 19, 2003, 02:19:53 AM
Quote if M$ loses too much that they can't pull themselves out, shareholders may demand M$ pull out of console business!
Shareholders look at this from a long term point of view, and the game plan from that perspective looks pretty good. Never bet against Microsoft is a good philosophy when it comes to the stock market.
Again, why do you care so much is Microsoft is around or not?
Title: RE: I need Proof XBOX loses money on systems!!!
Post by: PIAC on June 19, 2003, 02:43:15 AM
why do you care that we care that microsoft is around or not
Title: I need Proof XBOX loses money on systems!!!
Post by: thecubedcanuck on June 19, 2003, 04:08:07 AM
piac
I dont care. I am just real curious as to this rediculous obsession many have with the other system makers. Seems really silly to me, they are only games after all.
Title: RE: I need Proof XBOX loses money on systems!!!
Post by: Termin8Anakin on June 19, 2003, 04:19:43 AM
i know they're *just* games, but if MS does TOO well, they may end up buying the whole industry, and we all know that they do buy things up if they can't do it themselves. We don't want that. Sony is fine at least they don't do that/