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View Full Version : 360 Still NOT Making Money



mor911
04-27-2007, 11:52 AM
dun dun duuuuun

Further cementing its image as Microsoft's loser brother who just needs a few bucks until "the band really takes off," the Entertainment and Devices Division (http://www.joystiq.com/search/?q=Entertainment%20and%20Devices%20Division) of the company lost $315 million (http://biz.gamedaily.com/industry/feature/?id=15953) in the third fiscal quarter. Meanwhile, Microsoft's overall earnings rocketed up to $14.4 billion, a 32 percent jump from last year, thanks to the release of Vista (http://www.joystiq.com/search/?q=Vista).

Revenue for the EDD (Zune (http://www.joystiq.com/search/?q=Zune), Xbox 360, PC gaming (http://www.joystiq.com/tag/gamesforwindows), etc.) also took a hit, dropping from $1.2 billion this same time last year to $929 million, a 22 percent change. Microsoft blames the loss on lower Xbox 360 sales, which seems pretty logical, seeing as the console has some new competition this year. They estimate shipments of 500,000 consoles this quarter, compared with 1.7 million in Q3 2006. Revenue in games also dropped on the PC and 360 by 44 percent, or around $393 million.

Edit- oops, forgot to leave linky http://www.joystiq.com/2007/04/27/xbox-360-still-bumming-cash-from-microsoft/

Motion
04-27-2007, 11:55 AM
:eek: Wow, thats a chunk of change right there.

muscle979
04-27-2007, 12:10 PM
That's rough. Good thing I'm a playstation loyalist.

PhinzN703
04-27-2007, 12:18 PM
I would've gotten PS3 if it wasn't as expensive as it is. I like the 360 too :wink:

theghost
04-27-2007, 12:21 PM
Xbox360 has gotten plenty of money from me this year.

Medieval954
04-27-2007, 12:21 PM
Microsoft blames the loss on lower Xbox 360 sales, which seems pretty logical, seeing as the console has some new competition this year.I would say it's time for a price drop. Only shipping 500k consoles in the quarter means they've overshipped to retailers. They need to clear out stock. Also, I don't think a console has ever gone this long without a price reduction and I'm pretty sure most, if not all, of the hardcore gamers have been reached at $399. I do expect one come E3 in July with Halo 3 on the horizon.

mor911
04-27-2007, 01:05 PM
Yuo can bet they'll drop the price by $50+ by this holiday season... I hope it's more like $100+

Timmy54
04-27-2007, 01:06 PM
well they sure did make over 500 bucks on me this week, it is you other guys who have not done your part.

FinsNCanes
04-27-2007, 01:16 PM
:lol:

Oh well..

I'm actually a little dissapointed in the 360 myself..

I..honestly..can't seem to find a game worth buying. I just rented LOTR Battle for Middle Earth..seems like a cool game.

How are these people taking hits when it would seem more and more people are gaming nowadays? I don't get it.

Majpain
04-27-2007, 01:44 PM
:lol:

Oh well..

I'm actually a little dissapointed in the 360 myself..

I..honestly..can't seem to find a game worth buying. I just rented LOTR Battle for Middle Earth..seems like a cool game.

How are these people taking hits when it would seem more and more people are gaming nowadays? I don't get it.

2 Worlds
Mass Effect
Bioshock
Halo 3
Too Human
Dont worry games are coming

Phin-o-rama
04-27-2007, 01:52 PM
forza 2 and colin mcrae dirt (graphics look better than forza) are two im looking forward to

PhinzN703
04-27-2007, 01:55 PM
well they sure did make over 500 bucks on me this week, it is you other guys who have not done your part.

I spent 400 for the system, mem card and NBA 2K7. That's not enough? Give me more money and I'd be glad to spend it

dolphan117
04-27-2007, 03:04 PM
Microsoft blames the loss on lower Xbox 360 sales, which seems pretty logical, seeing as the console has some new competition this year. They estimate shipments of 500,000 consoles this quarter, compared with 1.7 million in Q3 2006.Does this mean they are actually making money on the console? If they weren't selling fewer consoles would help their bottom line wouldn't it?

Edit-And from the start I believe Microsoft expected to loose money on the first 2 consoles. Just the price of getting into the next gen console industry........ Which is also the reason Sony and Microsoft are the only 2 companies doing it, its just to expensive for other companies to get into.

Deus Ex Dolphin
04-27-2007, 05:19 PM
If you ignore the part about MS as a whole making 14.4 BILLION dollars, then yeah... I guess you could worry about them. :D

Don't worry kids, MS will be okay. They did lose billions on the Xbox, but should break even or make a few bucks on the 360.

Majpain
04-27-2007, 05:39 PM
Besides they are going to make real money on the console when some of the bigger names are released. Halo 3 could support the 360 by itself.

Dolfan984
04-27-2007, 05:42 PM
I said it once and I'll say it again. Other than a few badass games, XBox 360 is overrated.

Phin-o-rama
04-27-2007, 07:00 PM
see thats the thing though....if the 360 is overrated then what is the ps3? honest question.

Majpain
04-27-2007, 07:13 PM
I said it once and I'll say it again. Other than a few badass games, XBox 360 is overrated.

Really then whats playstation?

Dolfan984
04-27-2007, 08:22 PM
Really then whats playstation?

:lol: I'm poor. I play PS2 and PC games. I'm still having fun between Guitar Hero, Street 3, Madden 07, WoW, and Ultimate Baseball Online :)

Majpain
04-27-2007, 08:47 PM
:lol: I'm poor. I play PS2 and PC games. I'm still having fun between Guitar Hero, Street 3, Madden 07, WoW, and Ultimate Baseball Online :)


No I ment if the 360 is overated what does that mean for the PS3? Thats all I ment. Each systems is going to have its ups and downs and each are going to have their great games. I really think you can't overate a system.

SirDrums
04-27-2007, 09:40 PM
Well, around here the 360 is doing great. GHII is selling great, and I cant seem to find a 360 game to rent any where bc they are all out being played.

Dolfan984
04-28-2007, 02:07 AM
No I ment if the 360 is overated what does that mean for the PS3? Thats all I ment. Each systems is going to have its ups and downs and each are going to have their great games. I really think you can't overate a system.

PS3 aint crap. I don't have a PS3 (my brother have a 360 which gets played less than the PS2) so I can't tell you anything about it. It's just not that great right now other than a few games. Maybe in another year or so it'll be different.

VanDolPhan
04-28-2007, 03:21 AM
:lol:

Oh well..

I'm actually a little dissapointed in the 360 myself..

I..honestly..can't seem to find a game worth buying. I just rented LOTR Battle for Middle Earth..seems like a cool game.

How are these people taking hits when it would seem more and more people are gaming nowadays? I don't get it.

Can't be trying to hard since the Xbox 360 has the record for the highest game attachment rate of any console in history at 5.2 with a huge load of games to fill out the rest of the year with games like Lost Odyssey, Alan Wake, Crimson Skies 2 etc for 2008 already expected.

Not sure why this was big news that they were losing money. They've been losing money on the console since the beginning of the xbox.

Also lets clear up that initial post. Revenue has dropped cause of lower Xbox360 shipments but they didn't specifically say the loss was coming from there. Once they get to the 65nm chips they should finally be making a profit on the boxes for the first time in history.

Microsoft always expected to lose a huge chunk of change to tackle the Sony monster and with the hit the PS3 is taking that strategy may have worked in the long run.

FinsNCanes
04-29-2007, 01:10 PM
see thats the thing though....if the 360 is overrated then what is the ps3? honest question.


Lacking games.

The ps3 in the long run will "win" the console war just like they did with ps2. They just stumbled out of the gate a bit. I like the 360, hope they come out with better games in the future though. Just because you have 40 games on the shelves doesn't negate the fact only 4 are really worth playing.

FinsNCanes
04-29-2007, 01:13 PM
Can't be trying to hard since the Xbox 360 has the record for the highest game attachment rate of any console in history at 5.2 with a huge load of games to fill out the rest of the year with games like Lost Odyssey, Alan Wake, Crimson Skies 2 etc for 2008 already expected.

Not sure why this was big news that they were losing money. They've been losing money on the console since the beginning of the xbox.

Also lets clear up that initial post. Revenue has dropped cause of lower Xbox360 shipments but they didn't specifically say the loss was coming from there. Once they get to the 65nm chips they should finally be making a profit on the boxes for the first time in history.

Microsoft always expected to lose a huge chunk of change to tackle the Sony monster and with the hit the PS3 is taking that strategy may have worked in the long run.


Quality over quantity. I used to PC game alot and it seemed every PC game I bought was WORTH buying. I could care less if the 360 came out with 50 games a year compared to the PC comes out with 10, but if 7 out of those 10 games are good then it's worth it.

VanDolPhan
04-30-2007, 08:05 PM
Quality over quantity. I used to PC game alot and it seemed every PC game I bought was WORTH buying. I could care less if the 360 came out with 50 games a year compared to the PC comes out with 10, but if 7 out of those 10 games are good then it's worth it.


Err there's a lot of quantity games. I didn't even list the non quality titles. Seriously you gotta be a pretty jaded gamer (or burn thru games to fast) to not be able to find stuff yah like.

I work on PC Gaming titles to (I work for 2 online games right now) so there really hasn't been much on the PC to get me excited lately. Might pick up Hellgate but who knows.

DeathStar
04-30-2007, 08:55 PM
remember they lose money on the actual console it self and are trying to make money on the games.

just like gilette and their razors...they lose money on the actual razor but rape us on the blades.

Phin-o-rama
04-30-2007, 10:52 PM
they lose money on the actual razor but rape us on the blades.


ouch :wink:

Phin-o-rama
05-07-2007, 10:46 AM
Production costs of the Xbox 360 Elite have dropped to $323.30 per unit based on the latest estimates by research firm iSuppli, further dwarfing PS3 production costs.
The lowered production costs are good news for Microsoft, while Sony’s production costs remain far higher than the PS3’s retail price.

The following is based on iSuppli figures compiled and published by DigiTimes.

PS3 motherboard, CPU, graphics processor and chipset costs total $352 compared to $204 for Xbox 360.

The PS3 optical disc drive/player costs Sony $125 compared to just $19.45 for Xbox 360.

The power supply and hard disc drive for the PS3 are each $10 more expensive than Xbox 360 costs. PS3 Bluetooth functionality and network modules account for $20 per unit, costs not relevant to Xbox 360.

The research also cites further PS3 costs of $150 per unit for extra components not required for Xbox 360, $35 greater chassis related costs, and PS3 assembly costs of $40 per unit compared to just $6 per Xbox 360.

The total cost of producing a 60GB PS3 therefore stands at $840.35 compared to $323.20 for an Xbox 360 Elite. The 60GB PS3 retails at $599 while the Xbox 360 Elite can be purchased for $479.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=5502&Itemid=2

muscle979
05-07-2007, 11:15 AM
Production costs of the Xbox 360 Elite have dropped to $323.30 per unit based on the latest estimates by research firm iSuppli, further dwarfing PS3 production costs.
The lowered production costs are good news for Microsoft, while Sony’s production costs remain far higher than the PS3’s retail price.

The following is based on iSuppli figures compiled and published by DigiTimes.

PS3 motherboard, CPU, graphics processor and chipset costs total $352 compared to $204 for Xbox 360.

The PS3 optical disc drive/player costs Sony $125 compared to just $19.45 for Xbox 360.

The power supply and hard disc drive for the PS3 are each $10 more expensive than Xbox 360 costs. PS3 Bluetooth functionality and network modules account for $20 per unit, costs not relevant to Xbox 360.

The research also cites further PS3 costs of $150 per unit for extra components not required for Xbox 360, $35 greater chassis related costs, and PS3 assembly costs of $40 per unit compared to just $6 per Xbox 360.

The total cost of producing a 60GB PS3 therefore stands at $840.35 compared to $323.20 for an Xbox 360 Elite. The 60GB PS3 retails at $599 while the Xbox 360 Elite can be purchased for $479.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=5502&Itemid=2


I think it will take a little time for both of these consoles to make some money. Once the game developers learn to fully take advantage of the power of these systems things will probably take off. I know right now some of PS3s games still seem like PS2 games. The main reason I bought it right now is for the Bluray player. That alone makes it worth it. A Bluray player by itself costs more than six hundred dollars.

Phin-o-rama
05-07-2007, 11:23 AM
i agree...honestly, i kinda wanna sell the wii, and possibly buy a ps3


shhhh tho

Motion
05-07-2007, 11:25 AM
i agree...honestly, i kinda wanna sell the wii, and possibly buy a ps3


shhhh tho

I should put that quote in my sig :tongue:

Phin-o-rama
05-07-2007, 11:40 AM
i want a blu ray player :- /

muscle979
05-07-2007, 11:51 AM
i want a blu ray player :- /

Those things look great. Best picture and sound I've ever seen on a television. Worth every penny IMO.

dolphan117
05-07-2007, 06:58 PM
I think it will take a little time for both of these consoles to make some money. Once the game developers learn to fully take advantage of the power of these systems things will probably take off. I know right now some of PS3s games still seem like PS2 games. The main reason I bought it right now is for the Bluray player. That alone makes it worth it. A Bluray player by itself costs more than six hundred dollars.Actually if these numbers are true the 360 should be out of the red before all that long shouldn't they? Making over $100 per console plus all the games...... On the other hand if they are still loosing over $200 for the PS3, I don't know when if ever they are going to make money on it.

Its especially good news for Microsoft if they are actually making money on the 360 because you have to figure sales will go up whenever Halo 3 comes out.