Microsoft losing $126 per Xbox 360 unit

[CaptainZombie]

Re: Microsoft losing $126 per Xbox 360 unit

Why doesn't Microsoft just covertly sell some 360's on Ebay to even it out?

Too funny, maybe that's where the remaining of the US launch systems went.

[KillRoy]

Re: Microsoft losing $126 per Xbox 360 unit

What is your definition of "failing" though? Ending up in 3rd or having something like the first xbox? (that did great but wasnt #1)

Great?? The xbox didn`t make MS any money. They took a loss on the whole project. But "failing" would be not making a profit. How much of a profit you make is how you judge success with any company.

Since MS, like any other company, is the business to make money, I don`t see them making another console if 360 fails.

[CMH]

Re: Microsoft losing $126 per Xbox 360 unit

Great?? The xbox didn`t make MS any money. They took a loss on the whole project. But "failing" would be not making a profit. How much of a profit you make is how you judge success with any company.

Since MS, like any other company, is the business to make money, I don`t see them making another console if 360 fails.

Depends on how you look at it. You have to take risks as a company in order to see future profits.

Microsoft entered the gaming market for the first time when they released the XBOX. Though they lost a lot of money it solidified their position in the console-making market. It in essence has helped drive the XBOX 360.

Though, Microsoft is selling their systems at a loss it doesn't mean they are losing profit. They still make money from many other things such as games sold, Marketplace, Arcade, and Live.

[Erv]

Re: Microsoft losing $126 per Xbox 360 unit

This isn't a good start. MS posts anything like xbox 1 losses and Gates will discontinue it or highly alter the nature of their next console.

[KillRoy]

Re: Microsoft losing $126 per Xbox 360 unit

Microsoft entered the gaming market for the first time when they released the XBOX.

No... it wasn`t the first time they`ve been in the gaming market, it was the first time they entered the console market. Just wanted to clarify that...

Though, Microsoft is selling their systems at a loss it doesn't mean they are losing profit. They still make money from many other things such as games sold, Marketplace, Arcade, and Live.

I`ll say it one more time... MS didn`t make any money off the xbox, the games, arcade, Live... NOTHING..... the final numbers were posted quite some time ago and they lost money in almost every quarter of the the xbox`s short lifespan. I wish I could find the link showing this but I can`t right now, maybe someone can post it? The Xbox failed from a profits point of view but yeah, it got their foot in the door but in this business, success breeds success. If a company fails once chances are they won`t do well the second time around.

I`m not saying the 360 is junk or anything... its actually a great piece of hardware but I don`t expect it to do that well. Allthough I would like to see it succeed because that keeps the competition thriving but I don`t see this happening.

If it tanks I see Ms going the way of Sega and become a 3rd party developer.

[dagger55]

Re: Microsoft losing $126 per Xbox 360 unit

If it tanks I see Ms going the way of Sega and become a 3rd party developer.

MS will not let the 360 fial...

you know why?


$$$

and i currently own a 360, and its the greatest video game system EVER, and there is nothing remotely close to it...

the menus...

xbox live and arcade...

THE CONTROLLER.....

every game in HD....

i could go on and on...

this system will not fail at all

[KillRoy]

Re: Microsoft losing $126 per Xbox 360 unit

MS will not let the 360 fial...

you know why?


$$$

and i currently own a 360, and its the greatest video game system EVER, and there is nothing remotely close to it...

the menus...

xbox live and arcade...

THE CONTROLLER.....

every game in HD....

i could go on and on...

this system will not fail at all

Yadda, yadda yadda.... ****snooooze****

I`ve heard this before.

[Erv]

Re: Microsoft losing $126 per Xbox 360 unit

Cash can't sell systems if people are unwilling to commit. GC was 50% lower than the other 2 consoles and only had a temporary sales hike. Xbox went to $149, demonstrated it was at the time much more powerful/equipped than ps2(which slowly caught up at the end) and lost by 70 million. What did MS's cash do there?

Spending cash to sell something that loses cash is only tolerated by any competent chairman for so long, even if the product is loved. Xbox anyone?My guess is 360 is do or die time, they have to at least match sony imo in order to see a successor.

[coffeeholic]

Re: Microsoft losing $126 per Xbox 360 unit

I state the obvious. Microsoft isn't going to lose money in the long run no matter what they get their hands on. It is a billion dollar corporation with tons of financial consultants. They didn't get to the top by "losing" money. I'm also NOT trying to sound bitter here but/I think the Xbox has really never met it's full potential and they could have easily gotten more life from it. Microsoft wants ahead of Sony IMO. I still marvel at the amazing graphics that come from games on the box that are over a year old. Look at ESPN NFL 2K5. The box died too soon.

[p2xgamers]

Re: Microsoft losing $126 per Xbox 360 unit

Microsoft knew they were going to lose money, thats why the first XBOX wasnt really a failure. But if they lose even more money on 360, who knows, I think it all depends on how 360 does and how determined Gates is to make the XBOX the best console system/most popular available.

[ZB9]

Re: Microsoft losing $126 per Xbox 360 unit

it's all about the games

if the 360 puts out the best games in the future, then the system will be a success.

[bkrich83]

Re: Microsoft losing $126 per Xbox 360 unit

Doesn't really matter. THere's no money in hardware, there hasn't been for some time. The real money, is in software sales, and licensing. That's where where MS is looking to make their money.

[KillRoy]

Re: Microsoft losing $126 per Xbox 360 unit

Doesn't really matter. THere's no money in hardware, there hasn't been for some time. The real money, is in software sales, and licensing. That's where where MS is looking to make their money.

I agree.... but why market a gaming console as the "DO ALL" system if games is how you`re going to make your money?

MS has made some obvious mistakes with the xbox and it looks like they haven`t REALLY learned anything from it.

[KillRoy]

Re: Microsoft losing $126 per Xbox 360 unit

Microsoft knew they were going to lose money.

I don`t think so... they were projecting 60 million units sold. Who remembers this quote from one of the big wigs over at MS? It was quoted about 2 months before the xbx was released. They thought the xbx was going to make money.

[bkrich83]

Re: Microsoft losing $126 per Xbox 360 unit

I agree.... but why market a gaming console as the "DO ALL" system if games is how you`re going to make your money?

MS has made some obvious mistakes with the xbox and it looks like they haven`t REALLY learned anything from it.

Very simple. Market the console to the masses. Get as many out there as you can. The more consoles you sell, the more software you sell, and the more software you license. The more consoles you sell, the more software developers lineup up to sign license agreements.