Microsoft gaming division in more trouble than we thought?

Discussion in 'Video Games and Technology' started by funkatron101, Apr 25, 2007.

  1. funkatron101

    funkatron101 TFW2005 Supporter

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    http://www.vgchartz.com/news/news.php?id=260

     
  2. 03Mach1

    03Mach1 Reason Has No Voice

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    Bill Gates is not concerned with petty things like losing money. Besides, his ego will never allow Sony, Nintendo or any other company to stop MS from being a major player in the video game industry.
     
  3. flamepanther

    flamepanther Interested, but not really

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    Interesting to see how much money Microsoft seems to have lost because of the 360. I'd be interested to know how much money Sony has lost because of the 360. If it's more than MS has lost, then MS is still winning, sort of.
     
  4. Boardwise

    Boardwise is scary - Sig Killer - M Super Mod

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    The ariticle lost all credibility for me in the second paragraph with the line: own financial statements and comparative console sales figures extracted from VGChartz.com and Wikipedia.org)

    Stating Wikipedia as a source is slightly laughable.

    I also love when people post article such as this but have either not read it fully or just copyed it and not done any editing.
     
  5. Smasher

    Smasher HUNKY BEATS

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    I saw this article on TeamXbox a couple of weeks ago and paid it no mind.

    It doesn't take into account the immense number of software units the 360 is pushing out at all. 360 titles are consistently dominating the top 10 every month. That never happened with the original Xbox. There would be one -maybe two titles and that's it.

    It also never mentions revenue from DLC or in-game advertising.

    With pockets as deep as Microsoft's, I don't think their business strategy is the same as everyone else's. I also think its funny that he talks about changing the strategy for the sake of the shareholders.

    Is Microsoft on the whole losing money? I think not.
     
  6. Mr. Wholesome

    Mr. Wholesome WWOD What Would Ops Do?

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    Yeah, I saw it on TXB a while back too. I go there every day for my info and once belonged to the boards until I got banned for saying "2?". I seriously doubt MS is shaking in their boots from these "facts" anyway. And if they were doing so bad why are they comming out with the Elite then?
     
  7. funkatron101

    funkatron101 TFW2005 Supporter

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    I found it to be an interesting article, and had a very brief moment in my busy day to read it, and thought others would be interested. Hardly worth biting my head off for.

    Your opinion and sarcasm has been noted. Next time I find an article I think is interesting, I'll just keep it to myself.
     
  8. McBradders

    McBradders James Franco Club! Moderator

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    ...hotly debated on the blogosphere?


    Journalism needs a kick in the ass for sanity's sake.
     
  9. funkatron101

    funkatron101 TFW2005 Supporter

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    It beats Anna's baby's daddy drama. :lol 

    This article isn't the most professional piece by any means, but it's the first time I've seen any figures thrown around about the MS's gaming division that included the 360. Even if the figures are fudged, I still think one has to wonder how long will MS continue if they keep hovering at or below the black, in its gaming division.
     
  10. McBradders

    McBradders James Franco Club! Moderator

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    They'll stick with it. They don't exactly want those monopoly dudes coming after their asses again.

    Also, 360 > everything else. The facts speak for themselves.
     
  11. DaggersRage

    DaggersRage Autistic bastard.

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    Well, hey, thanks for the post.

    I read it and caught my eye, especially sense I just bought me a 360. It doesnt make me want to change my mind on wanting that 360, but at least the article wasnt another "lets bash microsoft because they make more money than me".
     
  12. misterd

    misterd Well-Known Member

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    I really don't have a problem with the Wikipedia use as I don't see any hotly debated facts being raised here. My problem is just with the analysis.

    First, MS got into this game for a long term goal - to compete in the unified home entertainment system market. Both Sony and MS are convinced this is going to be big business (I am less convinced, but that's an argument for another day), but not today. They are each looking at least another 5 years down the road, with an industry that, if it happens, will likely last for decades. So a loss of $1 billion per year over 5 years isn't likely to scare anyone. The truth is MS did better last generation than most people expected, and is doing even better now (largely due to Sony's semi-implosion).

    Also, I think the emphasis on Japan is misplaced. Yes, it is an important market. About as important as the US and Europe. PS2 won last time because it dominated all 3. Nintendo did well in 2, XB did well in 2, and they both suffered because of it. This time it doesn't look like we'll get the same discrepency. Even if the Wii becomes the new PS2, I doubt its success will impact the sales of its rivals to the same degree. Even it did, this shouldn't factor into MS's long term plans, because Nintendo has no interest in doing the whole centralized home entertainment thing. The only thing that could really hurt MS in this regard is if the Sony again dominated in sales, which would make it harder for MS to be seen as a legitimate competitor, but that doesn't appear to be happening, and I can't imagine any course correction Sony might take now that would completely revitalize their fortunes.
     
  13. Toonces

    Toonces Domo

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    Interesting article.

    You couldn't pry my 360 from my cold dead hands.
     
  14. Smasher

    Smasher HUNKY BEATS

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    Toonces, are you the cat who could drive a car?
     
  15. Hiro Prime

    Hiro Prime Cybertronian Guru Veteran

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    Yeah, like an American made game system is gonna outsell the systems of two other Japanese companies in Japan. How long has Microsoft been in this game? That'd be like Mitsubishi expecting to outsell GM in the US back in the '70's.

    Now, 2.5 decades later maybe they could, but not then. MS just needs to keep putting out good systems for another few years, and maybe by the next upgrade, they'll get a better share of the market over there.
     
  16. Bryan

    Bryan ΜΟΛΩΝ ΛΑΒΕ

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    I don't know about current numbers, but there was an Economist article a last year that laid out hard numbers showing the MS was losing money on the sale of every Xbox, and was expected to do so with the 360 as well (this was shortly before the release).

    The assessment was that MS is in this for the long, long haul. Besides the whole 'take over your living room' plan,' most of the money in the gaming industry comes from the sale of titles developed in-house (which is why Nintendo won big with the GameCube despite having the least market share at the time--they make most of their best-selling games themselves). MS's goal is to get the Xbox series (original, 360, and future iterations) out there, then once it's established, focus on making money with game sales.

    At least, that's the jist of the article far as I can recall. But it kinda makes sense, and after all, who's gonna really argue with any business plan of Bill freakin' Gates?
     
  17. GigatronSama

    GigatronSama Mr. Insomnia Veteran

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    Microsoft has been using the old Shavers and Blades analogy with the Xbox line. Sell the system at a loss and try to make up for it in software. So far it hasn't been working, as far as turning a profit goes even though it did gain them market share.

    At their current level it probably won't work either. They can't get a foothold in Japan where the software sales would be most profitable, and the US market alone isn't enough to make up the difference.

    With Square moving Final Fantasy over to the 360 though, Microsoft may still have a shot at catching on in Japan, especially if they can keep undercutting the PS3's price. Courting the Japanese gaming companies like squarenix, Capcom and so on could turn things around in the east, especially if they can present themselves as the lower cost means of playing the latest final fantasy or Dragon Quest.
     
  18. McBradders

    McBradders James Franco Club! Moderator

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    When did Final Fantasy get announced for the 360?
     
  19. Seth Buzzard

    Seth Buzzard R.I.P. Buzzbeak Content Contributor

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    To back that up a little when 360 was first came out MS was saying that they had no illusion that it was going to be #1 and there plan is to build on the brand and gain ground with each new system.
     
  20. McBradders

    McBradders James Franco Club! Moderator

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    :throw 
     

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