You really think that?
Kind of strange that they are letting all their major developers go no?
Are Microsoft working on the Xbox 3 ?
- Thread starter cheets64
- Start date
Kind of strange that they are letting all their major developers go no?
No obviously not, but they always knew they had to take losses to gain marketshare, now they have done that then they can make profits from now and they hope for next gen too. MS for me this gen was always about getting more of the market not about profits, it's a long term plan, they are on target.
Microsoft may have lost a lot of money, but in 2 generations there have been mistakes.
1st with the Xbox arriving too late, the market was as good as over and Sony were flying high, so Microsoft spent on exclusives for their next console.
With the Xbox360 it's been plagued by reliability issues, asa result some are afraid to buy it.
The repairs of Xbox360 have been reported as $1bn, in reality that figure is probably higher. Had MS not had reliability issues, with the new, cheaper consoles they wouldn't be far from a healthy profit in this generation.
The new one, without reliability issues could take over from the 360 and just become the dominant home-machine. Despite the 360's reliability issues, I don't know of many 360 owners who wouldn't go and buy Microsofts next machine, because this one has been so good.
1st with the Xbox arriving too late, the market was as good as over and Sony were flying high, so Microsoft spent on exclusives for their next console.
With the Xbox360 it's been plagued by reliability issues, asa result some are afraid to buy it.
The repairs of Xbox360 have been reported as $1bn, in reality that figure is probably higher. Had MS not had reliability issues, with the new, cheaper consoles they wouldn't be far from a healthy profit in this generation.
The new one, without reliability issues could take over from the 360 and just become the dominant home-machine. Despite the 360's reliability issues, I don't know of many 360 owners who wouldn't go and buy Microsofts next machine, because this one has been so good.
How anyone can say that MS has lost a billion is beyound me without havign there hands on the accounts.
If anyone is in trouble its Sony, in general, they have been dogged with other problems on a whole and have lost so much more.
Im thinking the monsy spent R&D on the Cell chip is hurting them now.
MS Entertainment Dept has always had a major long long term goal, they will be in it for the very long run.
If anyone is in trouble its Sony, in general, they have been dogged with other problems on a whole and have lost so much more.
Im thinking the monsy spent R&D on the Cell chip is hurting them now.
MS Entertainment Dept has always had a major long long term goal, they will be in it for the very long run.
Actually that's very wrong, only now are analysts thinking the 360 is being sold for a small profit, the PS3 is still AFAIK being sold for less then the sum of it's parts..
The Wii is the only console that is sold making a reasonable profit, but it isn't anywhere near the 75% you are eluding too..
They make money primarily from the software sales, that's where it's all at.. unfortunately to get people to buy software, you have to sell the console at a price people will pay, and in the case of the 360/PS3 that's at a loss..
Lol to be honest you make me laugh, almost every single thing ever invented looses money at first! It always does...
ALWAYS!!!!
A companys product cycle runs on strategy that it predicts ho wmuch it wants to make by say 3 quaters later, if it dosnt make the money then it says its made losses, not only that, you give the console 2 years and it will have recooped its losses by far, hense why they start creating a new one..
A Product never makes money at the start, its how it works, they know the costs before production, from then on it starts to break even, then starts to make proffit..
Wait until the next Xbox is due to be released youll hear the stats for the consoles money making... i.e. on the news... "the last console made an estimated ..." you always see and hear it.
Like i said before, the Xbox360 has, and will continue to make money, and the developer will probably never step out of the market, especially as blu ray has been released, MS will now be in the process of starting talks with PS3 for the dech details of blu ray and for the patent to be spread to them, sony will make an awful lot of money for this which will probably fund the whole development process for the PS4.
Either that or MS will develop something of there own.
Not quite dude, i did an alevel in Business and i remember the teacher syaing that a company will never release a product for less than its worth, and if they do the prices go up and up as popularity grows, that isnt gonig to happen in this case, they have to set a fair price to start with, one that will make them money to recoop the looses fast, they know people will purchase it at that price, ad the price will be reasonable, just about. Then after a certain amount of time the products prices lower, and as for the 1 quater thing i mentioned that was mearly an example..
ALWAYS!!!!
A companys product cycle runs on strategy that it predicts ho wmuch it wants to make by say 3 quaters later, if it dosnt make the money then it says its made losses, not only that, you give the console 2 years and it will have recooped its losses by far, hense why they start creating a new one..
A Product never makes money at the start, its how it works, they know the costs before production, from then on it starts to break even, then starts to make proffit..
Wait until the next Xbox is due to be released youll hear the stats for the consoles money making... i.e. on the news... "the last console made an estimated ..." you always see and hear it.
Like i said before, the Xbox360 has, and will continue to make money, and the developer will probably never step out of the market, especially as blu ray has been released, MS will now be in the process of starting talks with PS3 for the dech details of blu ray and for the patent to be spread to them, sony will make an awful lot of money for this which will probably fund the whole development process for the PS4.
Either that or MS will develop something of there own.
Not quite dude, i did an alevel in Business and i remember the teacher syaing that a company will never release a product for less than its worth, and if they do the prices go up and up as popularity grows, that isnt gonig to happen in this case, they have to set a fair price to start with, one that will make them money to recoop the looses fast, they know people will purchase it at that price, ad the price will be reasonable, just about. Then after a certain amount of time the products prices lower, and as for the 1 quater thing i mentioned that was mearly an example..
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Quote of the century.
Good or bad quote?
Its true though, you cant make something for free, unless you have the parts there lying around.
You cant emply the people with no money, you cant create the huge factories with no money.
loss loss loss..
You decide.
I have, i edited my post.. ^^
I agree with you, losing money from the minute you start the research of the product, only when it's on sale can you begin to make the money back.
but you are talking about the manufacturing process... thats not making a loss.... you make a loss when at the end of the year you have not recouped your costs. not being out of pocket due to manufacturing.
Your teacher is wrong I'm afraid.
Xbox360 was sold at a loss of ~$100-$200 IIRC
PS3 was sold at a loss of ~$300-$400 IIRC.
Exactly, companies dont see the few year or so as a bad year for themselves as the do need to give it time, expecially with this kind of market, once one sale can you see the amount of revenue your going to bring in.
Theses a few vital time sof the year that they jot down and monitor the money made.
Release date: They know they will make some money but not as much as they want.
1st drop in price: They will make twice as much as the release date at times due to the amount of people who can afford this amount.
2nd drop in price: They will make an awful lot of money here also but not as much as they want.
1st Christmas sale: Here the prices often go up, not too much but enough to make it expensve but proffitable and damn do they make a lot of money at this time of the year.
Xmas sale: Prices again drop and they again start making as much money as they were before xmas came along.
They they start bringing out silly little things like different colour consoles and like the ps2 did, a slim line version, they try to boost revenue, i cant remember the name of the strategy but after so long they put something else out there to boost popularity and revenue, i cant remember the term exactly but its a classic strategy that they all use, invent something new to make it worth buying.
Evantualy they break even...
What are you talking about?
your always making a loss untilk its on sale, yes you make money from advertising prerelease but how can you actually make a proffit on something thats not released, and at the end of the year they call it a loss it they dont recover the whole amount spent, which is obvious they aint gonna do.
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okay so after this debate when will google start getting in to the console market?????????????????
Both Sony and Microsoft will release follow ups to the the PS3 and 360.
However, they will both be nothing more than 'off the shelf' updated CPU's and GPU's and more RAM and bigger Hdrives.
Although the 360 successor will no doubt also get a Blue-Ray/HD-DVD drive as well.
In the same way Nintendo has made a mint in selling an overclocked Gamecube in a new case, aka, the Wii.
So, perhaps a PS4 will have a 5-6ghz Cell chip instead of a 3.2Ghz, and a Nvidia GFX chip based on whatever is current in 2010/11
The Xbox 720, or whatever its called, will be a 5-6ghz Power Pc chip and AMD/ATI's latest chip in 2010/11
This way, both Sony and MS can avoid the Backwards compatibility debacles and keep development costs to a minimum.
It will be too expensive to design a brand new,ground up console next time round.
However, they will both be nothing more than 'off the shelf' updated CPU's and GPU's and more RAM and bigger Hdrives.
Although the 360 successor will no doubt also get a Blue-Ray/HD-DVD drive as well.
In the same way Nintendo has made a mint in selling an overclocked Gamecube in a new case, aka, the Wii.
So, perhaps a PS4 will have a 5-6ghz Cell chip instead of a 3.2Ghz, and a Nvidia GFX chip based on whatever is current in 2010/11
The Xbox 720, or whatever its called, will be a 5-6ghz Power Pc chip and AMD/ATI's latest chip in 2010/11
This way, both Sony and MS can avoid the Backwards compatibility debacles and keep development costs to a minimum.
It will be too expensive to design a brand new,ground up console next time round.