Analysts predict: the current generation X-Box will NEVER be profitable

J

jethrek

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5thlion5thlion said:
who cares if they loose money
i just want the system to come out
Click to expand...

It is a rare day MS is actually openly discussing the possibility of slashing jobs.
 
Syxx573

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Who cares, a lot of people made out like bandits... romz bandits. :glee:

Microsoft isn't going out of business any time soon.
 
chimpmeister

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Oh that reminds me, I need to get a pre-chipped XB with a phat HDD installed, and load it up . . . such a great arcade machine!! :D :D

As for profitability, who cares. We all benefit from the console and games, and profitability doesn't matter to me . . . and it shouldn't matter to you, unless you're a super pro-Nintendo anti-XB fanboy. :spock:
 
slerch666

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You should be worried about profitability if you want to ever see an X-Box 3. Not even MS is dumb enough to stay in a market they can't make money in, and more than likely, if there is some way for them to ruin the market on their exit, they will try.

I am not anti-X-Box, I just don't like MS as a company. The X-Box has some decent games, it's just over priced in my eyes since I don't even play video games that much anymore. Now if it hits $99 this year I may take the pplunge and put my Steel Battallion to use...
 
Phoenix Down

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To be honest I think this is what Microsoft assumed would happen all along and planned for it.

Look at Internet Explorer, until recently it was nowhere near as good as other browsers (ok it still isn't really great) but it gained a marketshare because Microsoft basically gave it away at a loss. Now that they have the market pretty much cornered the next version of IE will most likely be a paid version.

The same is true for MS Office, which is why we're now paying $600 for a full-featured office suite that IMO isn't worth even close to that amount. Unfortunately since it's become the standard most people don't have a choice.
 
slerch666

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Phoenix Down said:
The same is true for MS Office, which is why we're now paying $600 for a full-featured office suite that IMO isn't worth even close to that amount. Unfortunately since it's become the standard most people don't have a choice.
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Give me Open Office or give me death! OK, so Open Office is usable but nowhere near the level of MS Office. :D

As far as the X-Box 2 losing money, if I remember correctly, in an interview with some magazine (maybe Next-Gen when it was still around?) MS stated that the plan was to lose money by getting the X-Box into people's home but to actually make money using the next system (not on SYSTEM sales, but actually be able to turn a profit with the licensing and all that shit like Nintendo and Sony do). If they don't make money next time around, I wouldn't expect them to stick around at all.
 
Takumaji

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Just like the PSX and the DC received a boost when ppl found out how to "backup" their games, Xbox sales get a shot in the arm by the phat HD + emu + roms thingy at the mo, at least over here. I wonder wether the analysis has taken that into account as well.

I've still not modded my box because... well, I'm too lazy... for the old-ass early-80s roms I have an old DOS mame and a creaky Logitech pad, and all those arcade collections (PSX, SAT) and straight arcade ports (PSX, Genny, DC) that I have are enough to keep me busy... and if I break out dem RoMz I mostly end up playing Wonder Boy anyway so it's no big deal...

Shit, one day I'll found a Wonder Boy Addicts Anonymous...
 
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jethrek

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chimpmeister said:
Oh that reminds me, I need to get a pre-chipped XB with a phat HDD installed, and load it up . . . such a great arcade machine!! :D :D

As for profitability, who cares. We all benefit from the console and games, and profitability doesn't matter to me . . . and it shouldn't matter to you, unless you're a super pro-Nintendo anti-XB fanboy. :spock:
Click to expand...

Funny, if this was a thread talking about Nintendo's profitability you'd be trolling like mad. :lol:
 
J

jethrek

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Phoenix Down said:
To be honest I think this is what Microsoft assumed would happen all along and planned for it.

Look at Internet Explorer, until recently it was nowhere near as good as other browsers (ok it still isn't really great) but it gained a marketshare because Microsoft basically gave it away at a loss. Now that they have the market pretty much cornered the next version of IE will most likely be a paid version.

The same is true for MS Office, which is why we're now paying $600 for a full-featured office suite that IMO isn't worth even close to that amount. Unfortunately since it's become the standard most people don't have a choice.
Click to expand...

This strategy, as I said when X-Box launched, works great in software biz. not in hardware.
 
Phoenix Down

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jethrek said:
This strategy, as I said when X-Box launched, works great in software biz. not in hardware.
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Right, but game companies make their money from software. Even in previous generations of consoles actual hardware didn't account for much profit. If someone buys an Xbox and only ever gets one or two games (or uses it as just a ROMZ box), it's bad for MS, but if they buy ten games MS comes out ahead overall.
 
Atro

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Takumaji said:
Shit, one day I'll found a Wonder Boy Addicts Anonymous...
Click to expand...

Wonderboy ?

Wow man! those series rocked !

I specially love the 3rd. Wonderboy III is my 2nd favorite game ever. Be it Master System or Nec PC Engine.
 
Takumaji

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Atrophyed said:
Wonderboy ?

Wow man! those series rocked !

I specially love the 3rd. Wonderboy III is my 2nd favorite game ever. Be it Master System or Nec PC Engine.
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Well... didn't play 3 very much, liked 2, but my love is the first Wonder Boy.

Pure, uncut, clean & perfect jump'n'run action.

Best old-school platformer ever made IMO. It's a god damn SHAME that the best and most accurate port still is the C=64 version, the SMS/GG port is decent but in no way faithful to the original. Back then I hated Sega for not releasing it on Genny, would've been so cool, but I guess most ppl had enough of all those System-8 arcade games by the early 90s. Too bad.
 
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chimpmeister said:
Oh that reminds me, I need to get a pre-chipped XB with a phat HDD installed, and load it up . . . such a great arcade machine!! :D :D

As for profitability, who cares. We all benefit from the console and games, and profitability doesn't matter to me . . . and it shouldn't matter to you, unless you're a super pro-Nintendo anti-XB fanboy. :spock:
Click to expand...

You got probs, old man.
 
S

striderpunk

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is this news? if so i did not need some dood to tell me the billy box sux from teh back
 
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jethrek

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Phoenix Down said:
Right, but game companies make their money from software. Even in previous generations of consoles actual hardware didn't account for much profit. If someone buys an Xbox and only ever gets one or two games (or uses it as just a ROMZ box), it's bad for MS, but if they buy ten games MS comes out ahead overall.
Click to expand...

Let me clarify: whether or not an X-Box runs software is pretty much meaningless to my point. X-Box is a piece of hardware. Analysts are predicting that the X-Box, as a game system- not merely hardware but including software- will never be profitable.

Unlike the IE example, once the development for IE is complete, selling the software is insanely cheap. MS didn't just lose on X-Box DEV though, they are being pummeled because they must CONTINUE to lose money on EACH AND EVERY system sold. MS based their business model on their normal software model- because they are a software company.

This is a hardware business.
 
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johnroche

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Phoenix Down said:
Look at Internet Explorer, until recently it was nowhere near as good as other browsers (ok it still isn't really great) but it gained a marketshare because Microsoft basically gave it away at a loss. Now that they have the market pretty much cornered the next version of IE will most likely be a paid version.
Click to expand...

Truthfully, I believe their plan has been to roll it entirely into the OS. To that end, they've discontinued all independent versions of IE (Windows, Mac, Solaris*, etc.) and plan to place IE directly into the operating system.

*I believe that at one point, they may have made Internet Explorer for Solaris. I don't remember for sure, though. :\
 
galfordo

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I'll buy ten more, and then barricade myself in like Ruby Ridge.
 
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Nick Goracke

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jethrek said:
Let me clarify: whether or not an X-Box runs software is pretty much meaningless to my point. X-Box is a piece of hardware. Analysts are predicting that the X-Box, as a game system- not merely hardware but including software- will never be profitable.

Click to expand...

I sound like a broken record, but... "Opening the X-Box"... good book... basically spells out for you that Microsoft wasn't expecting to turn a profit with this system. It's not a surprise. It hasn't been for years.
 
Lastblade

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Leave it to these "analyst" to point out the obvious.

I bet these same analysts will tell you who will win the superbowl 10 minutes after it is over.
 
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jethrek

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Nick Goracke said:
I sound like a broken record, but... "Opening the X-Box"... good book... basically spells out for you that Microsoft wasn't expecting to turn a profit with this system. It's not a surprise. It hasn't been for years.
Click to expand...

At the risk of sounding like a broken record, let me point out something more obvious...

Losing nearly a billion dolars a year is too much for even the legendary MS. Contrary to popular rumour, Ms isn't even the biggest company in America, and right now they're not happy about their X-Box division's moneyhole.

A lot of people will now jump into this thread screaming how MS makes enough money not to feel this.

Bullshit. Between the massive money losing X-Box, and Longhorn draining as much as a lunar landing, even MS is starting to feel a little stretched thin. Note how MS has not already followed the GC price cut in time for this holiday season.
 
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