Microsoft already making losses with the 360

[突貫 (Tokkan)]

And there's a $1/console difference with between the 360 losses and the original Xbox losses.

www.gamespot.com/news/6140383.html


... And I had though that they would've learned a lesson from the Xbox, especially after losing $4 billion.

[王泥喜]

Hmm.

First we hear that Sony's selling the PS3 at a loss. Then this article states the 360 ALSO sells at a loss.

... am I seeing a pattern for the future? What if someday even NINTENDO needs to start selling system at a loss to get anywhere?

[Squiggles the Chao]

Like I've said before, the X-Box is part of Microsoft's Home Media Center strategy. They want to get X-Boxes into homes so they can start a media subscription service, and they can afford to take the losses.

Honestly, this isn't a huge story. Everyone knew the 360 would be sold at a loss.

[突貫 (Tokkan)]

squigglesthechao said:

Like I've said before, the X-Box is part of Microsoft's Home Media Center strategy. They want to get X-Boxes into homes so they can start a media subscription service, and they can afford to take the losses.

Yeah, but it's still better to sell stuff at a profit as opposed to at a loss.

[sanius]

Not always.

[Optimus Prime]

It's long-term profit strategy they're trying to initiate though. Seriously.

One would be MORE apt to buy, say, an online game that was $50 with all the free play one could want. However, it's better to sell it at, say, $30. Make up the loss in subscriptions.

It makes sense, but only if enough people join their pay-network. And it worked alright for the X-Box, I think?...

[突貫 (Tokkan)]

sanius said:

Whats your point?

Nil.

[sanius]

Whats your point?

[BlazeHedgehod]

Business Week’s otherwise excellent article about how much Microsoft is taking it on the chin for each Xbox 360 forgot one crucial element: Mark-up. That’s right, retailers like Best Buy, Walmart and EB Games don’t sell the 360 for the fun of it, they actually like to make a bit of cash on the side too. According sources, and previous coverage, Kotaku readers might remember that the mark-up for the 360 is about 5 percent on average. Which means that Microsoft is actually losing an extra $20 per a console, making the grand total $146 and you know that last twenty’s gotta hurt.

www.kotaku.com/gaming/xbox-360/microsofts-forgotten-20-139137.php

[Sofox]

Hey, that Microsoft X-Box guy I spoke to said they were intending to make a profit this time around. Well I guess there's still a chance, but honestly it's looking like even console manufacturers are no longer profitable. Makes you wonder about the industry, or at least the ham handed tactics of brute force Microsoft seems to be trying to use to get into it.

bluetail said:

And it worked alright for the X-Box, I think?...

If you mean that the X-Box ever made a profit, I believe not.