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Playstation/Gaming Discussions => Gaming Discussion => Topic started by: BizioEE on March 08, 2001, 05:11:31 AM

Title: Xbox costs too much.........for Microsoft?
Post by: BizioEE on March 08, 2001, 05:11:31 AM
Merrill Lynch\'s very own Henry Blodget issued a report reguarding the Xbox\'s profitability for Microsoft. In this report it states that Microsoft could quite possibly lose $2 Billion before the system even becomes profitable!! And wait, there\'s more, he also says that Xbox could only become profitable AFTER 5 years! He commented that since the PS2 has a 1 year headstart and is a well known in the console industry, the Xbox\'s best chance is a strong Number 2 position in the console race. If this Mr. Blodget proves right, this is very good news for Sony.
Title: Xbox costs too much.........for Microsoft?
Post by: Ginko on March 08, 2001, 06:09:56 AM
Which is why Bill needs to start telling everyone that XBOX is your new best friend and will make your life easier for just XXX$.

Really, I\'m starting to doubt what Xbox will be able to achieve.  I heard rumours it was going to launch a 400$!!!  That is unheard of today,  if it does launch at at that price, it will sink so hard.

And I\'m also starting to doubt what Killer apps it\'s going to have.  Malice and Munch are nice, but don\'t scream must have.  A must have would be like...ummm, Soul Calibur 2 is Xbox exclusive.  That would sell systems, or a new Final Fantasy is announced exclusive.  Xbox doesn\'t have a killer app yet, but maybe it will soon be announced.


But, I am looking forward to E3 too shed a little more light on the subject...
Title: Xbox costs too much.........for Microsoft?
Post by: ProfessorX on March 08, 2001, 08:26:48 AM
Well the PS2 costs $483 dollars to make and Sony takes a loss on those.  Doesn\'t mean Sony is gonna feel that anytime soon!  Sega took a loss on hardware, Sony takes a loss on hardware, and MS will take a loss on the hardware...nothing new here.

Everyone makes their money on the software these days which is why exclusivity is so damn important because if you have a exclusive franchise that is really  good thats cash you don\'t share with the competetion.

I don\'t think we\'ll ever see a company make profit on the hardware as long as 300 is the ceiling for consoles.
Title: Xbox costs too much.........for Microsoft?
Post by: Bozco on March 10, 2001, 05:42:08 AM
Yeah that is why having GT3 and FF10 and 11 coming will help because there is nothing even remotely as good for the X-box
Title: Xbox costs too much.........for Microsoft?
Post by: Crippler on March 10, 2001, 11:41:57 PM
That wont effect MS in any way.

With Windows XP/Office XP coming out this year, they will make a killing.

Though it would be nice to hear on Bloomberg , microsoft has lost $$$$ on Xbox :D
Title: Xbox costs too much.........for Microsoft?
Post by: QuDDus on March 11, 2001, 04:36:43 AM
I think you should go back to the game site you got this from and read the press release ms put up about this. I saw it at dailyradaruk I think. They said this was based on his own opinon and not based on ms marketing  and financial plans. So I guess that flushes that guys opinon.
Title: Xbox costs too much.........for Microsoft?
Post by: Living-In-Clip on March 11, 2001, 05:45:19 AM
Sony lost money on the PS2--hell so did Namco.

And wait until E3, then everything will be told.
Title: Xbox costs too much.........for Microsoft?
Post by: koolkev on March 11, 2001, 01:01:41 PM
just to clear the air, there is a lot of wrong information floating on this forum, 1st sony ps2 does not cost $ 483 , it goes for $299 retail. 2nd sony did not take a big loss on ps2, there making money every day its the best selling console on the market !
Title: Xbox costs too much.........for Microsoft?
Post by: Jumpman on March 11, 2001, 01:07:59 PM
For some unknown reason I just felt the level of intelligence go rapidly down...oh it\'s just koolkev. My mistake. :D

Quote
1st sony ps2 does not cost $ 483 , it goes for $299 retail

*sigh*

It costs 483 to PRODUCE. It sells for $299, which means Sony losses money off of every PS2 they sell. Its not very hard to understand that.

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2nd sony did not take a big loss on ps2, there making money every day its the best selling console on the market !

Read above.
Title: Xbox costs too much.........for Microsoft?
Post by: koolkev on March 11, 2001, 01:29:35 PM
hey there jumpy, your response is ignorant as usual, but thats expected of you, i understand though so i won\'t hold it against you. let me explain something to you. Sony is a very big and successful company,  they didnt get that way though from losing money,you see success comes from profit, not taking a loss in a product. so as in there other electronic products the ps2 makes them money ,so if it retails for  $299 , ill bet it costs less than that to make the product you do the math, you can use a calculator if you need to.
Title: Xbox costs too much.........for Microsoft?
Post by: Jumpman on March 11, 2001, 01:37:17 PM
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hey there jumpy, your response is ignorant as usual, but thats expected of you, i understand though so i won\'t hold it against you. let me explain something to you. Sony is a very big and successful company, they didnt get that way though from losing money,you see success comes from profit, not taking a loss in a product. so as in there other electronic products the ps2 makes them money

Yup. He\'s still a braindead moron. Doesn\'t alarm me a bit though. Once an idiot always an idiot.

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so if it retails for $299 , ill bet it costs less than that to make the product you do the math, you can use a calculator if you need to.

No gimp, let me explain this very simple concept to you again. Please listen this time/

It costs 483 to PRODUCE. It sells for $299, which means Sony losses money off of every PS2 they sell. Its not very hard to understand that. So every PS2 sold it means that Sony just lossed  $184. They make money off of software sales, not hardware.

Get that through your thick head.
Title: Xbox costs too much.........for Microsoft?
Post by: koolkev on March 11, 2001, 01:54:49 PM
your still on this click that it costs $483 to make but thats wrong you ****head. they aint gonna lose money on their consoles,that aint smart bussiness to make a product that will lose money and have to depend on something else to make up for it!?! why make it in the first place? no your wrong here , they aint losing nothing on their ps2 and they DON\'T cost  $483 to make! All their electronics equipment make them a profit, thats why theyre one of ,if not the, leading manufacturer in electronics. so for you,as much as you hate sony, to think they lose money on their ps2 is, like i said before, a ignorant fanticy or illusion on your part. But as i also said before, you do have the right to be wrong.
Title: Xbox costs too much.........for Microsoft?
Post by: Jumpman on March 11, 2001, 02:01:51 PM
No, I\'m not wrong. Everyone here can back me up on that too.
Yes, 483 is the manucfacturing price.

Sony DOES lose money off of hardware sales, almost every company does. Xbox, PS2, and DC all lose money off of each console sold. Where do they make up for it? SOFTWARE SALES. PS2  makes it\'s money off of software sales.

Do you even know what software is????
Title: Xbox costs too much.........for Microsoft?
Post by: koolkev on March 11, 2001, 02:30:28 PM
sorry jumpman, but i totally disagree with you and i will never believe sony takes a loss on their ps2 consoles and i dont think any company that stays in business does either.
Title: Xbox costs too much.........for Microsoft?
Post by: Jumpman on March 11, 2001, 02:36:35 PM
Quote
Originally posted by koolkev
sorry jumpman, but i totally disagree with you and i will never believe sony takes a loss on their ps2 consoles and i dont think any company that stays in business does either.

I don\'t give about what you think. Its a fact that Sony lossed money off of every PS2, you can\'t change that. Everyone here except you knows that.

Just shut up before you make yourself look even worse.
Title: Xbox costs too much.........for Microsoft?
Post by: koolkev on March 11, 2001, 02:51:53 PM
OK.  i was trying to be nice.  now i dont give a rats azz what u say son, but sony DID NOT take a loss on their ps2 dipsh!t. NO company with that kind of success loses money on their products. Now that is FACT ,got it !?! PS2 is a great console ,already proven, it is top of the line right now only x-box or mabe gamecube will challenge it but that is still to be seen. What we do know is that ps2 is definately a better console than dreamcast,no question and that is a proven fact!
Title: Xbox costs too much.........for Microsoft?
Post by: Living-In-Clip on March 11, 2001, 02:59:02 PM
Quote
Originally posted by koolkev
OK.  i was trying to be nice.  now i dont give a rats azz what u say son, but sony DID NOT take a loss on their ps2 dipsh!t. NO company with that kind of success loses money on their products. Now that is FACT ,got it !?! PS2 is a great console ,already proven, it is top of the line right now only x-box or mabe gamecube will challenge it but that is still to be seen. What we do know is that ps2 is definately a better console than dreamcast,no question and that is a proven fact!


I personally don\'t care if you like Sony or not, but Jumpman is right. It costs close to $500 for Sony to produce each PS2 unit. It is a well known fact, that Sony doesn\'t even deny. The only money they make from the PS2 currently is from software titles sold. They get a small percent for each title sold. It is fine to love Sony, but it is stupid to close your eyes to well known facts.

I\'m suprised you haven\'t been banned for your simple ignorance, spamming and flaming...
Title: Xbox costs too much.........for Microsoft?
Post by: Jumpman on March 11, 2001, 03:02:16 PM
OMFG this is hilarious. This guy is like a living joke made for our personal amusement!

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but sony DID NOT take a loss on their ps2 dipsh!t. NO company with that kind of success loses money on their products

Urgh your such a moron.

It costs 483 to PRODUCE. It sells for $299, which means Sony losses money off of every PS2 they sell. Its not very hard to understand that. So every PS2 sold it means that Sony just lossed $184. They make money off of software sales, not hardware.

Get that through your thick head.

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Now that is FACT ,got it

Actually, what I just said is a fact, and everyone knows that.

Quote
PS2 is a great console ,already proven, it is top of the line right now only x-box or mabe gamecube will challenge it but that is still to be seen. What we do know is that ps2 is definately a better console than dreamcast,no question and that is a proven fact!

Thats your opinion gimp. Some people think DC is better than PS2,are they right? No. Are they wrong? No. Why? Because its their opinion which will never be fact.

Someone else please back me up on this so he will finally shut up.

EDIT- Thanks Living-In-Clip.
Title: Xbox costs too much.........for Microsoft?
Post by: Black Samurai on March 11, 2001, 04:44:38 PM
Quote
Originally posted by koolkev
OK.  i was trying to be nice.  now i dont give a rats azz what u say son, but sony DID NOT take a loss on their ps2 dipsh!t. NO company with that kind of success loses money on their products. Now that is FACT ,got it !?! PS2 is a great console ,already proven, it is top of the line right now only x-box or mabe gamecube will challenge it but that is still to be seen. What we do know is that ps2 is definately a better console than dreamcast,no question and that is a proven fact!


Slow down there shawty. It has already been stated, but I guess I will say it again. Sony loses money on each console that the sell. Just like Sega did with the DC and Nintendo did with the N64. Now THAT is a fact. They make money through software sales and royalties. It is not very hard to understand. The hardware in the PS2 is fairly advanced and does not come cheap. Just use some logic. It should not be that hard to understand.

BTW, Its been a while since we had a genuine Sony Troll on premises.


:thepimp:
-Beantown Slim
Title: Xbox costs too much.........for Microsoft?
Post by: IronFist on March 11, 2001, 09:48:19 PM
Koolkev, go do your research before you try to defend the PS2.  You are making an idiot out of yourself.
Title: Xbox costs too much.........for Microsoft?
Post by: QuDDus on March 12, 2001, 01:24:42 PM
Hey chill down guys...jeesh.. Hey koolkev there is nothing wrong with not knowing. Man what is the big point of saying o I did not no that? Anyways It is industry standard lose money on hardware make up in games everyone knows that so just cool it Kool it\'s all good(whatever that means:)
Title: Xbox costs too much.........for Microsoft?
Post by: CelliCeL on March 12, 2001, 07:00:21 PM
:laughing: