Microsoft exec: XBOX ONE focus is "very much on profitability"

#11ElPolloDiablo87Posted 9/10/2013 5:45:21 AM
Sniper_Brosef posted...
ElPolloDiablo87 posted...
DesperateMonkey posted...
Yeah good luck with that.

Console #1 - loses $4 billion
Console #2 - loses $2.5 billion
Console #3 - profit?


You're wrong by the way. They made over a billion on 360.


I don't think that's right. Do you have a link? I remember them being in the red until the last three years.


Oops, they made a little over 400 million so far. Legwork courtesy of Metroid

FY 2006: 1.262 billion USD Loss; Link: http://www.microsoft.com/investor/reports/ar06/staticversion/10k_fr_dis.html
FY 2007: 1.892 billion USD Loss; Link: http://www.microsoft.com/investor/reports/ar07/staticversion/10k_fr_dis.html
FY 2008: 426 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar08/10k_fr_dis.html
FY 2009: 169 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar09/10k_fr_dis.html
FY 2010: 679 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar10/10k_fr_dis.html
FY 2011: 1.324 billion USD Profit; Link: http://www.microsoft.com/investor/reports/ar11/financial_review/discussion_analysis.html
FY 2012: 364 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar12/financial-review/discussion-analysis/index.html

FY 2013 Q1: 19 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q1/SegmentRevenues.aspx
FY 2013 Q2: 596 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q2/SegmentRevenues.aspx
FY 2013 Q3: 342 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q3/SegmentRevenues.aspx
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#12Ch3wyPosted 9/10/2013 5:47:27 AM
Why is this news?

Is this opposed to Sony's strategy of not being competitive so that they don't make any money?
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#13LICKWIDPAlNPosted 9/10/2013 6:06:05 AM
Ch3wy posted...
Why is this news?

Is this opposed to Sony's strategy of not being competitive so that they don't make any money?


I think he ment that they don't care about bringing quality games in the long run as good as their competition as evidenced by the Xbox and Xbox 360.
Once that Kinect ad machine gets running, the Xbone will suffer the same fate.

I give the Xbone about 2 years as far as the amount of times we will see some pretty good games. After that, same situation as the 360.
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#14MetroidFan9999Posted 9/10/2013 6:14:15 AM
ElPolloDiablo87 posted...
Sniper_Brosef posted...
ElPolloDiablo87 posted...
DesperateMonkey posted...
Yeah good luck with that.

Console #1 - loses $4 billion
Console #2 - loses $2.5 billion
Console #3 - profit?


You're wrong by the way. They made over a billion on 360.


I don't think that's right. Do you have a link? I remember them being in the red until the last three years.


Oops, they made a little over 400 million so far. Legwork courtesy of Metroid

FY 2006: 1.262 billion USD Loss; Link: http://www.microsoft.com/investor/reports/ar06/staticversion/10k_fr_dis.html
FY 2007: 1.892 billion USD Loss; Link: http://www.microsoft.com/investor/reports/ar07/staticversion/10k_fr_dis.html
FY 2008: 426 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar08/10k_fr_dis.html
FY 2009: 169 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar09/10k_fr_dis.html
FY 2010: 679 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar10/10k_fr_dis.html
FY 2011: 1.324 billion USD Profit; Link: http://www.microsoft.com/investor/reports/ar11/financial_review/discussion_analysis.html
FY 2012: 364 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar12/financial-review/discussion-analysis/index.html

FY 2013 Q1: 19 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q1/SegmentRevenues.aspx
FY 2013 Q2: 596 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q2/SegmentRevenues.aspx
FY 2013 Q3: 342 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q3/SegmentRevenues.aspx


What a trooper!

See I don't always post negative information.
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#15DesperateMonkeyPosted 9/10/2013 7:04:55 AM
LICKWIDPAlN posted...
Ch3wy posted...
Why is this news?

Is this opposed to Sony's strategy of not being competitive so that they don't make any money?


I think he ment that they don't care about bringing quality games in the long run as good as their competition as evidenced by the Xbox and Xbox 360.
Once that Kinect ad machine gets running, the Xbone will suffer the same fate.

I give the Xbone about 2 years as far as the amount of times we will see some pretty good games. After that, same situation as the 360.


How did they have bad support in the long run? They had better support for like the first five years which is the majority of the generation. They were about equal to Sony on year 6 and then lost on year 7 and 8. If thats going to be repeated then MS is definitely going to be the better console for the most relevant period of the console life.

MS has already spend $1 billion on exclusives too which is a ridiculous amount so there seems to be no shortage of games at least until PS4 has a price drop. Sony on the other hand is struggling to pull out nearly as much money for exclusive development and opened some kind of program to secure "exclusive extras".

Your advertising comment makes no sense either. Advertisements work based on userbase. No one is buying a console for advertisements and only dumb FBs think this. If they actually make a lot of money on advertisements then they need to invest even more in getting exclusives and content that makes gamers buy an Xbox now and in the future and next generation.
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#16whitelytningPosted 9/10/2013 7:20:13 AM
ElPolloDiablo87 posted...

Oops, they made a little over 400 million so far. Legwork courtesy of Metroid

FY 2006: 1.262 billion USD Loss; Link: http://www.microsoft.com/investor/reports/ar06/staticversion/10k_fr_dis.html
FY 2007: 1.892 billion USD Loss; Link: http://www.microsoft.com/investor/reports/ar07/staticversion/10k_fr_dis.html
FY 2008: 426 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar08/10k_fr_dis.html
FY 2009: 169 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar09/10k_fr_dis.html
FY 2010: 679 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar10/10k_fr_dis.html
FY 2011: 1.324 billion USD Profit; Link: http://www.microsoft.com/investor/reports/ar11/financial_review/discussion_analysis.html
FY 2012: 364 million USD Profit; Link: http://www.microsoft.com/investor/reports/ar12/financial-review/discussion-analysis/index.html

FY 2013 Q1: 19 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q1/SegmentRevenues.aspx
FY 2013 Q2: 596 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q2/SegmentRevenues.aspx
FY 2013 Q3: 342 million USD Profit; Link: http://www.microsoft.com/Investor/EarningsAndFinancials/Earnings/FinancialStatements/FY13/Q3/SegmentRevenues.aspx


Respect for work done.

Mirrors exactly what the article said.
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#17NewMoonShadowPosted 9/10/2013 7:28:28 AM
I suppose you can be positive about this by simply saying that companies are finally being honest about what they're really looking towards when they say s*** like "We're focusing on profitability" or the EA tagline, "We're looking to broaden the appeal." What this means, in a nutshell, is that not a single f*** is given about the actual experience or user satisfaction. All they care about, any of them, is getting your money. And when stuff is made under this sort of environment is exactly when creativity is stifled. Notice Sony hasn't said this, nor did they blow 1 Billion on exclusives that emulate successful franchises to appeal to specific markets.

Where did Sony put their advertising? On the innovators. the forward-thinkers. The indie-games. Right from the beginning, yeah, they had their Assassin's Creed and their Final Fantasy, but the indie-games took center stage right alongside them. The games that don't appeal to the masses by reminding them of Street Fighter or Call of Duty, the games that aren't looking to sell 10 Billion copies to turn a profit.

I'm not saying Sony isn't in it to make money. Of course they are. But they're doing it by putting out a wide-variety of high-quality products at every corner of the innovation-spectrum. Microsoft's software is basically built from the ground-up to "broaden the appeal". Hell the Devs of Titanfall even came out and said "F*** single-player, because nobody plays it", or properly translated, "Multiplayer sells more copies than single-player does."
#18whitelytningPosted 9/10/2013 7:31:19 AM
@ newmoon.

They do care about the customer experience but only to the point it effects the bottom line.

None of these concepts are new and non of this should be a surprise. This is true of every for profit business. They care about money above everything else. Its very simple.

Just because SONY targets a different market or utilized a different marketing strategy doesn't mean they are any more or less profit motivated than MS.
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#19ExempliGratiaPosted 9/10/2013 7:33:32 AM
Solnot posted...
http://www.geekwire.com/2013/microsoft-plans-turn-profit-xbox-start/

Microsoft has spent billions on its Xbox business over the years, and seen its share of red ink, but the company says it’s very focused on profitability for its upcoming Xbox One.

Speaking at the Citi Global Technology Conference, Xbox chief marketing officer Yusef Mehdi said he expects to “break even or be low margin at worse,” with the Xbox One hardware over time, and then make money on additional games, Xbox Live and other capabilities.

“The strategy will be the same as in the past,” he said. “As we can cost-reduce our box as we’ve done with the Xbox 360, we’ll do that [with the Xbox One] to continue to price-reduce and get even more competitive with our offering,” Mehdi said.

He made it clear that the focus for the Xbox One, which is priced at $499 for launch, is “very much on profitability.”

“If you look at the Xbox 360, that platform has lasted seven to eight years and will go on for another three years,” he explained. “It’s incredibly profitable now in the tail. Some of these things take time in the launch year in which you invest and then they play out a bit over time.”

Mehdi said that his team always has priced its products “super competitive” in terms of being close to break even or low margin in order to have broader distribution. For the Xbox One, he said, Microsoft made a couple “big bets.”

“We wanted something to really differentiate that lets you play games as if you’re playing movies and we wanted to break the barrier of being able to voice control your television,” Mehdi explained. “So to do that, we added a lot of capability. For $499, we think the value we provide for that is a very good deal. We feel that we’ve done the right balance. And if you look either the pre-orders that we’ve been sold out for weeks, or do price-adjusted inflation on the 360, it’s actually pretty comparable.”


Wait they are trying to make a profit? What scoundrels. You think they would maybe make good games to help them make that profit. Can't really make a profit on a GAME console without games.
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#20NewMoonShadowPosted 9/10/2013 7:40:57 AM
ExampliaGratia posted...
Wait they are trying to make a profit? What scoundrels. You think they would maybe make good games to help them make that profit. Can't really make a profit on a GAME console without games.


Considering they've thus far put far more advertising focus on the console's non-gaming capabilities, that may be something they're trying to do.