Xbox costs too much.........for Microsoft?

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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.

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...

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.

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

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

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.

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Sony lost money on the PS2--hell so did Namco.

And wait until E3, then everything will be told.

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 !

For some unknown reason I just felt the level of intelligence go rapidly down...oh it\'s just koolkev. My mistake.

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.

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.

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.

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.

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.

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.

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????

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.

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.