sonycowboy
Member
Doom_Bringer said:
They're going to be in some pain for quite a while. And SCEI is probably going to cough up some platelets as well.
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Xbox division down $4,000,000,000
- Thread starter Matlock
- Start date
They're going to be in some pain for quite a while. And SCEI is probably going to cough up some platelets as well.
DenogginizerOS
BenjaminBirdie's Thomas Jefferson
I won't give a shit who makes/loses money once I have begun playing GREAT games on a new system - PS3, X360, my new video card, Revolution, etc.
Kleegamefan
K. LEE GAIDEN
tedtropy said:
Substitue the M for a B and I might agree with you
FitzOfRage
Member
tedtropy said:
It was over $6 billion in their last quarterly report.
Hiro_Kunimi_80
Member
i think that "4billion" is the total lost in 4year not the balance of xbox division now...mj1108 said:
Beer Monkey
Member
If they lose 4 billion again, the shareholders will refuse to back a third generation.
If they lose 2 billion, MS will convince the shareholders that they are halfway to winning the battle for the living room.
If they lose 2 billion, MS will convince the shareholders that they are halfway to winning the battle for the living room.
..pakbeka..
Member
the money hats for itagaki sure were expensive
WrathOfOtaibah
Banned
Not good. Sony is losing shitloads of money. Their PlayStation division is really the only thing thats keeping them strong in brand name. Its unlikely they'd go bankrupt but damn. Xbox's division, although just a nick in the overall Microsoft machine, if things don't turn better there won't be an Xbox 720. Then there's Nintendo who releases 2-3 games a year with a format that is beyond the reach of the average consumer.
What a great next gen its shaping up to be.
What a great next gen its shaping up to be.
Hmmm, I wonder what would happen if MS decided to bail after this upcoming generation. I personally think they're going to be around for quite some time, but nobody in their right mind is willing to lose $4,000,000,000 every 5 years.
With the pricing structure that MS has with the 360, and with improved hardware component negotiating in place, they should be able to turn a profit this next generation if the software sells as well as it should.
With the pricing structure that MS has with the 360, and with improved hardware component negotiating in place, they should be able to turn a profit this next generation if the software sells as well as it should.
wobedraggled
Banned
Please let them have a similar fate with the 360 so they can bow out of an industry they had no right entering in the first place.
sonycowboy
Member
The Experiment said:
Yes, because $90M for this fiscal year is going to kill them. I mean last year they only made $1.5B last year, $840M the year before that, and $960M the year before that.
THEY"RE LOSING SHITLOADS OF MONEY.
AKA Experiment doesn't know shit about profit vs loss.
(NOTE: The results do suck when compared to their peers by a huge amount, but it's not lost shitloads of money as the mentally deficient might say. (Experiment, sorry for making you a object lesson, nothing personal))
WrathOfOtaibah
Banned
wobedraggled said:
People probably didn't think a company who made trading cards shouldn't mess with video games and look what happened.
..pakbeka..
Member
The Experiment said:
what?
Letter to Elise
Banned
Its hard to know what to believe with so many posters with obvious agendas.
:<
:<
WrathOfOtaibah
Banned
sonycowboy said:
Hey, I just hear that their other divisions aren't doing so great. They need to get money from somewhere. I also was exaggerating about Sony. I'm sure they have plenty of cash to keep PS3 moving.
Do you think everyone is going to love switching in shells for Revolution? Get real.
wobedraggled
Banned
DCharlie said:
Morse code rocks.
..pakbeka..
Member
The Experiment said:
I'm sure nintendo's intention is that people won't keep changing shells
I was right about SCE bleeding Microsoft badly on the console front but no one believed me. 
It's a classic SCE strategy that puts emphasis on internal production efficiencies to scale down cost at a faster pace than their competitors thus causing them to bleed on price drops. However, seeing as MS cannot be defeated by bleeding them and Nintendo is still very profitable, I see signs of them adding to that strategy. MS has learned from it's first XBOX affair by owning the GPU design and outsourcing it to fabs instead of relying on Nvidia or ATI alone (reduced licensing costs), so that efficiency strategy will only bleed MS so much this coming generation.
What SCE needs to do is improve and add value to their online service, increase semiconductor yields and reduction processes while concurrently decreasing their console component defects. It'll save them a bundle in the long run while improving reputation and customer loyalty. The one direction I see them taking is (hopefully) improved inhouse software development. This is basically the same as Nintendo where their strength lies in their software sales. The added revenue stream will help greatly and offset their initial per console loss during the first year or two. They will be a value added investments should some of those IPs attain successful sales and can be used for future bundles.
What would also help is for the other Sony divisions to get off their asses and contribute. Movies, music, services, other content, etc. can only help their cause. It's a bonus as they get additional revenue streams from the PS3.
It's a classic SCE strategy that puts emphasis on internal production efficiencies to scale down cost at a faster pace than their competitors thus causing them to bleed on price drops. However, seeing as MS cannot be defeated by bleeding them and Nintendo is still very profitable, I see signs of them adding to that strategy. MS has learned from it's first XBOX affair by owning the GPU design and outsourcing it to fabs instead of relying on Nvidia or ATI alone (reduced licensing costs), so that efficiency strategy will only bleed MS so much this coming generation. What SCE needs to do is improve and add value to their online service, increase semiconductor yields and reduction processes while concurrently decreasing their console component defects. It'll save them a bundle in the long run while improving reputation and customer loyalty. The one direction I see them taking is (hopefully) improved inhouse software development. This is basically the same as Nintendo where their strength lies in their software sales. The added revenue stream will help greatly and offset their initial per console loss during the first year or two. They will be a value added investments should some of those IPs attain successful sales and can be used for future bundles.
What would also help is for the other Sony divisions to get off their asses and contribute. Movies, music, services, other content, etc. can only help their cause. It's a bonus as they get additional revenue streams from the PS3.
monchi-kun
Member
wobedraggled said:
LOLLERSKATEZ
wobedraggled
Banned
bill0527 said:
But all the death wishing for Nintendo was a-o.k. this generation?
Please.
Letter to Elise
Banned
wobedraggled said:
Actually I find them both distasteful. Looking for amnesty by pointing out the crimes of others makes no sense.
wobedraggled
Banned
Letter to Elise said:
Yeah well, someone has to play the other side of the net, I keep forgetting that MS hate went the way of the dodo in 99 or so.
Those in glass houses blah blah blah
Sony lost money for like 5 quarters with the PS1. I think they did about the same thing for the PS2, maybe only 3 quarters. They'll bleed the same for the PS3. Though I think the PSP might negate that for future gens. The stagger might allow them to only get dips in profits rather than outright losses. Just a hunch. Sonycowboy tracks this stuff way better than I. PEACE.
wobedraggled
Banned
bitwise said:
Magic Gnomes.
and lots of head.
PS2 KID said:I was right about SCE bleeding Microsoft badly on the console front but no one believed me.
What are you talking about. Did some vast shadowy consortium hide Microsoft's financial reports for the past 4 years, leaving only you with the truth?
Letter to Elise
Banned
wobedraggled said:Yeah well, someone has to play the other side of the net, I keep forgetting that MS hate went the way of the dodo in 99 or so.
Those in glass houses blah blah blah
Again, both sides are extremely childish. I don't consider myself part of any bizarre "house"
I'm a gamer through and through. I let the silly fanboy games go to the silly fanboys, thank you.
I applaud Microsoft for entering the video game industry and giving Sony a run for their money.
Just a couple of years ago everyone was laughing at them, now look at how much they've accomplished:
- A solid worldwide #2 position (surpassing industry veteran Nintendo)
- Introduced the biggest new franchise this generation (Halo)
- Created Xbox Live, pushing the boundaries of online console gaming
- Snatched the legendary developer Rare from Nintendo.
- Established a solid first-party portfolio (Halo, Forza, Fable, etc.)
I'd say Microsoft is just getting started, I look forward to the fireworks.
Just a couple of years ago everyone was laughing at them, now look at how much they've accomplished:
- A solid worldwide #2 position (surpassing industry veteran Nintendo)
- Introduced the biggest new franchise this generation (Halo)
- Created Xbox Live, pushing the boundaries of online console gaming
- Snatched the legendary developer Rare from Nintendo.
- Established a solid first-party portfolio (Halo, Forza, Fable, etc.)
I'd say Microsoft is just getting started, I look forward to the fireworks.
wobedraggled
Banned
Prine said:
Heh,
I don't like the way MS handles itself therefore it comes out in my statement's about them. I'm quite a gamer actually, atari on up.
If you want a company that screwed so much innovation out of the computer market on it's way up running the show, have at it, I'll pass thanks.