Microsoft Posts Deeper Loss in Video Game Unit

[Refalm]

quote:The company loses money on each Xbox it sells, with some analysts pegging the shortfall at more than $100 per $199 console, meaning that strong sales for the platform actually increase its losses.

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[hm_murdock]

die xsux die die xsux die die xsux die

[lazygamer]

Problem is, if Microsoft lost 50 billon dollars like AOL, they would still be able to survive a few more 50B hits before becoming a shadow of it's former self. Ok maybe not, I don't know how much networth MS has, im just saying that they can easily afford to lose $150 per X-box.  

[cahult]

Someone please explain to me the laws of economics. Why can you sell an item which is profitable yet you lose money doing so? There is something rotten here...      :confused:    :rolleyes:    

[distortion]

quote:Originally posted by cahult:
Someone please explain to me the laws of economics. Why can you sell an item which is profitable yet you lose money doing so? There is something rotten here...        :confused:      :rolleyes:        

easy, they're selling it for less then what it costs to make it.

[SpeeDFreaK]

Doesn't that run afoul of some anti-trust laws(again)? Selling something at a loss to (attempt to) crush competition?

[Fett101]

It is typical practice in the video game industry to sell hardware for little or no profit due to the fact that they make the majority of thier money off the software.

[preacher]

The thing is that Sony sells its video game system at a loss as well, but they make a lot more money than MS because they have a lot more high quality games.

[distortion]

one of the issues that MS is facing is the fact that the hardware in they're system costs significantly more then what they are selling for, and video game makers couldn't possibly hope to create a game that utilizes that hardware.

that and they don't have any major video game makers backing them that they didn't buy. they have no support from capcom (except steel battalion, which has since been discontinued), no support from square/enix (except the final fantasy game that has since been cancelled).

they haven't had a big hit exclusive to the system ever! what about halo you say? it will be making it's way to pc in june. and splinter cell? come march 25 it will have come out for every other system. so microsoft isn't even making up for the lost money of console sales with software.

i have turn so many people away from the xbox, i've lost count (i work at a video game store, by the way). all opinions of microsoft aside, the xbox is the crappiest console i've ever seen. the nintendo 64 had better game support then the xbox.

[Fett101]

Hence, MS interest in Rare and Blizzard.

[cloudstrife]

three words

panzer dragoon orta.


There's a new exlusive title for ya, plus its made by sega.  oh and they already have a sequel to panzer dragoon saga in the works.

[Tattooed]

]
Everybody should go out and buy an xboy then- hopefully that would make M$ bankrupt  

[distortion]

quote:Originally posted by cloudstrife:
three words

panzer dragoon orta.


There's a new exlusive title for ya, plus its made by sega.  oh and they already have a sequel to panzer dragoon saga in the works.

while i'm not going to despute the fact that panzer dragoon orta is cool game (so is jet set radio future, and shenmue II), it certainly isn't the big hit the system needs.

sega is one of my favorite developers, so to see them working so close with MS makes me want to puke. MS is talking about trying to buy sega, and that makes me want to cry.

[rtgwbmsr]

quote:Originally posted by Tattooed:
]
Everybody should go out and buy an xboy then- hopefully that would make M$ bankrupt    

If 13.3 million XBoxes were bought in 1 financial quarter, M$ would be posting a net loss (it's first in god only knows how long). Not a bad idea!

I used 2 bil divided by $150 loss per console = 13.3 million.

[cloudstrife]

quote:Originally posted by distortion:

MS is talking about trying to buy sega, and that makes me want to cry.

me too.