Felix
Arcane
- Joined
- Sep 23, 2009
- Messages
- 3,356
Where is all the money?While the Xbox is a strong No. 2 in the video game market (after the Nintendo Wii), the entertainment division has lost $8.6 billion on sales of $49 billion since 1999, estimates Katherine Egbert of Jeffries & Co. An initiative to build Internet-based TV systems has yet to take off, and its iPod-like Zune music players have bombed. While Apple (AAPL) just sold its two millionth iPad, Microsoft recently scrapped a tablet code-named Courier. In smartphones, Microsoft's share in the first quarter was 6.8 percent, down from 10.2 percent the year before.
Actually, #1 is PC.Felix said:Where is all the money?While the Xbox is a strong No. 2 in the video game market (after the Nintendo Wii), the entertainment division has lost $8.6 billion on sales of $49 billion since 1999, estimates Katherine Egbert of Jeffries & Co. An initiative to build Internet-based TV systems has yet to take off, and its iPod-like Zune music players have bombed. While Apple (AAPL) just sold its two millionth iPad, Microsoft recently scrapped a tablet code-named Courier. In smartphones, Microsoft's share in the first quarter was 6.8 percent, down from 10.2 percent the year before.
Black said:Actually, #1 is PC.
Surprise, surprise.
http://www.businessweek.com/news/2010-0 ... llion.htmlSecretninja said:Yes, the xbox is a huge flop and not financially viable for microsoft.
Zed said:I don't care what happens to Microsoft's gaming division. What games have they distributed for the PC that were good except AoEII?
Eye-Toy flopped two times, that's in addition to very bad sales of PS3 in the beginning - and somehow Sony is still in console business.Alexandros said:If it flops, it may force MS to leave the console business, as that article points out.
MetalCraze said:Eye-Toy flopped two times, that's in addition to very bad sales of PS3 in the beginning - and somehow Sony is still in console business.
Why would they leave because some shitty camera didn't sell well?
Microsoft said themselves that they are planning to milk X360 for 5 more years - so relax, you still will be enjoying your 5+ years old outdated graphics on PC for years.
You are very wrong. Just because M$ was selling consoles with artificially lowered place (like Sony and Nintendo btw) doesn't mean they were at a loss - remember about %%% they get from game sales. The fact that M$ decided to keep Xbawks around for more years says that it's more than profitable - much less profitable XBox which was losing hard to PS2 didn't have such honor.Alexandros said:while both the original Xbox and Xbox 360 thus far have generated a loss for MS
Kinect is nothing. It isn't something M$ bets high on. It's just another controller. 2 crappy web-cameras that can only provide 640x480 at 30 fps isn't anything special or expensive to make.but I wouldn't go as far as to completely write it off if Kinect doesn't sell as much as they expect it too.
Zed said:I don't care what happens to Microsoft's gaming division. What games have they distributed for the PC that were good except AoEII?
Alexandros said:Besides, the fact that MS plans to keep the 360 around for 5 more years may be an indication that they still haven't recouped their initial investment.
MetalCraze said:Microsoft said themselves that they are planning to milk X360 for 5 more years - so relax, you still will be enjoying your 5+ years old outdated graphics on PC for years.
MetalCraze said:Alexandros said:Besides, the fact that MS plans to keep the 360 around for 5 more years may be an indication that they still haven't recouped their initial investment.
So they will keep a financial failure around for 10 years total? Don't be silly.
ScottishMartialArts said:MetalCraze said:Microsoft said themselves that they are planning to milk X360 for 5 more years - so relax, you still will be enjoying your 5+ years old outdated graphics on PC for years.
How can you milk something which isn't turning a profit? Microsoft has lost nearly 10 billion dollars on the 360.
The Entertainment and Devices Division of Microsoft, which includes the Xbox 360, PC games and Zune, showed a $165 million profit on revenues of $1.67 billion for the quarter -- alongside record revenue of $14.5 billion for the company as a whole for that period.
For the first three quarters of the company's current fiscal year, Entertainment and Devices Division revenues are down five percent, to $6.46 billion from $6.68 billion. However, profits are up a tremendous 242%, moving from $249 million for that period of 2009 to $851 million so far in 2010.