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[Matlock]

http://www.forbes.com/business/global/2005/1003/036A_4.html

The Xbox game console is hot, but its division has lost $4 billion in four years and isn't yet in the black

Article's dated next week, and haven't noticed it here yet...so!

 

[Dr_Cogent]

http://www.forbes.com/business/global/2005/1003/036A_4.html



Article's dated next week, and haven't noticed it here yet...so!

Wow.

OT: What's with the tag Matlock?

 

[jetjevons]

They lost it? You'd think it would be easy to find.

 

[Matlock]

OT: What's with the tag Matlock?

CK holds grudges.

 

[Bigfonzie]

roll the dice agin Microsoft, i dares ya!

 

[HomerSimpson-Man]

Geez.

 

[Bigfonzie]

Quick, someone calculate how many xbox's have been sold and the loss per console :lol

 

[gamergirly]

4 billion dollars of lost money. Boy, what a person could have done with that....

 

[Culex]

That's amazing. In four years, MS' gaming division lost more than half of what Nintendo has in cash reserves.

Only MS can lose that kind of money and keep on rolling along.

 

[Prine]

Behold the power of Microsoft

 

[FeedMeAStrayCat]

I wonder if they expect the 360 to actually turn a profit?

 

[brandonh83]

Four billion is probably the equivalent of a t-bone steak to Bill Gates.

 

[Tabris]

I wonder how much Sony or Nintendo has profitted in the last 4 years.

 

[Wario64]

I wonder if they expect the 360 to actually turn a profit?

i'm pretty sure they are considering the prices on accessories

 

[Flynn]

I wonder if they expect the 360 to actually turn a profit?

I think the fortunes of the Xbox division are going to make a total 360 this generation.

 

[Suburban Cowboy]

im calling it now. If 360 isnt a huge success (ie fails to lose less than, say, 2 billion) EA will buy out the gaming division of m$

 

[Tamanon]

I think the fortunes of the Xbox division are going to make a total 360 this generation.

Just making sure you understand what a 360 is

 

[DenogginizerOS]

Sony just fired 10,000 people. Put a figure on that. Business is business. Business is war. And some might say 4 Billion is an investment. Especially when you are worth 60 billion!

 

[GaimeGuy]

im calling it now. If 360 isnt a huge success (ie fails to lose less than, say, 2 billion) EA will buy out the gaming division of m$

What the fuck?

First you suggest that a huge success would be losing two billion dollars.

then you say EA will buy MS' game division out if they lose that much money? :lol

And :lol @ Flynn.

 

[Stinkles]

I think the fortunes of the Xbox division are going to make a total 360 this generation.

LOL at clever geometry.

 

[GaimeGuy]

Sony just fired 10,000 people. Put a figure on that. Business is business. Business is war. And some might say 4 Billion is an investment. Especially when you are worth 60 bllion!

MS is worth FAR more than 60 billion. I think they're closer to something like 300 billion in VALUE.

 

[gamergirly]

Four billion is probably the equivalent of a t-bone steak to Bill Gates.

Ehh, considering he's only worth 44 billion dollars, that's more accurate to a Mercedes-Benz in his eyes.

Gosh! Why didnt he just give some of that money to us! We could have supported Xbox more than they could

 

[DenogginizerOS]

MS is worth FAR more than 60 billion. I think they're closer to something like 300 billion in VALUE.

I was referring to Bill, but I get ya.

 

[heavenly]

So Halo's bazillion sales didn't offset the cost to make the console and maintain Microsoft Live servers?

 

[XboxGamers]

It takes money to make money.

 

[brandonh83]

Ehh, considering he's only worth 44 billion dollars, that's more accurate to a Mercedes-Benz in his eyes.

It was sort of a joke.

 

[DCharlie]

wowzers - making $1x.x billion a year profit, with 30%+ profit on revenue?

<izzy>that's bloody impressive</izzy>

 

[PhatSaqs]

Lets bleed until we win.

 

[GaimeGuy]

So Halo's bazillion sales didn't offset the cost to make the console and maintain Microsoft Live servers?

Please don't bring up the Live argument. MS probably profits from the 50 dolalrs they get yearly from its users.

what's killed MS has been the design of the Xbox. It's composed of off the shelf PC parts rather than a customized chipset. That, and MS' ridiculous money spent on marketing. They spent $500 million alone on the launch marketing campaign (I believe Nintendo and Sony's campaigns were $50 milllion. Sega's might have been $100 million, but I'm not sure)

 

[DenogginizerOS]

But, considering that Sony just freed up some cash by firing 10,000 people, Bye Bye Sony Warriors , I'd say MS has the +1 in this department. Not to mention, Sony is gambling a ton on Blu-Ray and PS3 cell so I am sure they are bleeding right now as well.

 

[Pimpwerx]

SCE is not Sony. Xbox division is not MS. The parent companies have no bearing on the gaming sectors. MS's gaming division just lost as much in those 4 years as SCE and Nintendo made. SCE is a very successful company compared to its parent. Xbox division is very unsuccessful compared to its parent. Nintendo is just Nintendo. PEACE.

 

[AirBrian]

But, but it's not just the Xbox in there. DAMN YOU BLEEDING MAC OFFICE!

 

[Doom_Bringer]

SCE is not Sony. Xbox division is not MS. The parent companies have no bearing on the gaming sectors. MS's gaming division just lost as much in those 4 years as SCE and Nintendo made. SCE is a very successful company compared to its parent. Xbox division is very unsuccessful compared to its parent. Nintendo is just Nintendo. PEACE.

well said but SCE has lost some money because of PS3 R&D

 

[FeedMeAStrayCat]

Just making sure you understand what a 360 is

:lol :lol :lol I wouldn't even have noticed that if you hadn't mentioned it.. :lol

 

[DarienA]

well said but SCE has lost some money because of PS3 R&D

...you always lose money because of R&D.

 

[Doom_Bringer]

...you always lose money because of R&D.

I AM TOTALLY SHOCKED BY THIS NEWS!!!!












-_-

 

[Ryudo]

Thats a lot of power cords.

 

[DenogginizerOS]

Considering XBOX was Microsoft's first venture into console gaming, I am surprised it is not more than 4 billion.

 

[tedtropy]

That's amazing. In four years, MS' gaming division lost more than half of what Nintendo has in cash reserves.

Only MS can lose that kind of money and keep on rolling along.

Last I heard Nintendo has about 10 million in cash reserve.

 

[GaimeGuy]

Last I heard Nintendo has about 10 million in cash reserve.

Oops?

 

[sonycowboy]

well said but SCE has lost some money because of PS3 R&D

It would be fairer to say that they haven't made as much money because of PS3 R&D .

Although, the fiscal quarter ends Sept 30th and results should be announced at the end of October. Given Sony's latest cuts, the series of reorganizitions, and the fact that they're already announcing their first annual corporate loss in a decade (and this will only be the 2nd quarter), it's gonna get ugly.

 

[Mr_Furious]

I predict MS will not be able to fully recoup that loss by the end of next-gen.

 

[Excelion]

same price as Cell, looking at it from this angle it's a great investment.

 

[Doom_Bringer]

It would be fairer to say that they haven't made as much money because of PS3 R&D .

Although, the fiscal quarter ends Sept 30th and results should be announced at the end of October. Given Sony's latest cuts, the series of reorganizitions, and the fact that they're already announcing their first annual corporate loss in a decade (and this will only be the 2nd quarter), it's gonna get ugly.

How long will this go on for? How much punishment can Sony take? Stinger isn't doing anything to help the situation! They really need to focus on key areas.

 

[GaimeGuy]

same price as Cell, looking at it from this angle it's a great investment.

Sony has two other HUGE electronics companies help with the funding for Cell, too, you know.

 

[sonycowboy]

How long will this go on for? How much punishment can Sony take? Stinger isn't doing anything to help the situation! They really need to focus on key areas.

Uhh...

That's exactly what they're doing.

I'm not sure if you're post is joking because the latest reorganization PR is exactly matched to your post.

 

[Forgotten Ancient]

You also gotta factor in the acquisition of Rare, Bungie (are they MS owned?), and whatever other developers they acquired.

In no way will MS consider a net loss on the 360 to be as some sort of success, unless they end up as #1 or a very very strong #2 next gen. They may have a nice roll of cash, but they won't be bleeding it out like this forever.

 

[Doom_Bringer]

Uhh...

That's exactly what they're doing.

I'm not sure if you're post is joking because the latest reorganization PR is exactly matched to your post.

I am not joking, I love Sony. It pains me to see them in such bad financial shape, I hope they recover soon and kick Panasonic’s ass.

 

[HomerSimpson-Man]

How long will this go on for? How much punishment can Sony take? Stinger isn't doing anything to help the situation! They really need to focus on key areas.

That's what Stinger is trying to do in the first place. This is the result of that, he's trying to make Sony work better together instead of being all competitive BS against their own divisions, problem is the transition is going hurt though. 10,000 jobs...yikes!

 

[Kleegamefan]

Behold the power of Microsoft

There is no money pit greater than X