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

#31ScRuiPosted 9/10/2013 9:54:55 AM
DesperateMonkey posted...
Then you are completely ignorant...

First of all, Sony as a Company is in a huge rut and has been selling off their assets to keep afloat.

Secondly, the entire PS division has made a $1.2 billion profit. That means the PS3 completely destroyed all profits the PS2 made and much of what the PSX made.

Do you understand why? This is because MS has a lot of money and they deal in using both their money and their expertise in muscling out the competition. There will no longer be days like PSX and PS2 with innocent gamers dancing around accepting whatever low standards the industry puts out. MS has set the spending bar really really high. After they lost in the PS2 era for not having exclusives, they must have spent a ridiculous amount of money muscling the PS3 because they got exclusives and timed exclusives as well as stealing exclusive status on anything from a ridiculous amount of titles like Eternal Sonata, Tales of Vesperia, Blue Dragon, FFXIII, DMC, Dead Rising, SCHMUPS, a bunch of exclusive Square RPGs, Culdcept, Bioshock, Fallout DLC and so on.

Basically, they saw what the PS2 did with timed and real exclusives and then said "well we can spend way more than those guys" for their 360 plans.

Then there is the whole software thing. MS set the bar high with profit loss on Xbox and the Xbox 360 released in 2005 with the specs of a high end gaming PC.

XBL was also ridiculously popular despite being a paid service forcing Sony to keep pace with XBL but unable to charge consumers, causing heavier losses.

This generation, both systems will see smaller losses, but as for profitable? I have no faith in that at all. MS is continuing with their reckless spending, dropping $1 billion in adverts an $1 billion on exclusives. They've also spent ridiculous amounts of money on acquiring servers which has cost several billions as well and is now subsidizing those servers to third parties for almost nothing.

Sony has the choice of either following suit, meaning they would have to spend billions that they don't have, to secure a network that allows anything remotely close to the same cloud and dedicated server support and build infrastructure from the ground up and compete with MS's massive software history, or they can do nothing and see the gap between PS+ and Gold become wider every year.

This has been MS's strategy for a long time. What did they do when Netscape was better than Internet Explorer? They muscled them out by making IE free.

In the same breath, people hate and love MS because they are willing to undercut the competition but at the same time, they stifle them. In this case however, they are undercutting another mega corporation so people don't care since Sony is just as greedy as MS ever was.


Don't know, if all this is true or not... Regardless... Puts light on the whole situation.... Great post...

Moral to the story, corporations want to make money and so do we
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#32Orange_ApplesPosted 9/10/2013 10:39:10 AM
That would have been funny to read, "MS is not interested in making money."
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#33SparkItUpPosted 9/10/2013 3:49:36 PM
Decimator11 posted...
That's good that they want to make a profit off of their product.


^ this...not really sure what the issue is TC
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#34zinsindettaPosted 9/10/2013 3:51:54 PM
DesperateMonkey posted...
Yeah good luck with that.

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


This is bullcrap. Microsoft turned a profit on Xbox Gold alone.
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#35georgewduff1Posted 9/10/2013 4:02:48 PM
In the last 10 years Microsoft have lost 3 billion with the Xbox division...While Sony have lost 5 billion...

But...The majority of this lost have occured between 2006-2008...During the 360 launch...
But after that...2009-2012...The Xbox divison is profitable...
Hardware launch cost a lot to company....

So in theory...the first two years of the XboxOne will be negative as well....But after that...It will be profitable...Will they ever be able to pull the 3 billion away and make a 0 deficit...maybe...expecting that the new hardware will be there for 8-10 years...And that online and digital purchase will become easier...
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#36NewMoonShadowPosted 9/10/2013 5:10:12 PM(edited)
SparkItUp posted...
Decimator11 posted...
That's good that they want to make a profit off of their product.


^ this...not really sure what the issue is TC


It's simple really. In gaming, there's a difference between a game that's made to be fun and then gets marketed... and a game that's made to be marketed. This s*** is why franchises like Dead Space and Resident Evil have their hearts torn out and get rebranded to look as close to modern FPS' as humanly possible. During Dead Space 3 development the director basically admitted that all of the bulls*** was altered/added at the demand of their corporate overlords in order to, quote, "broaden the appeal", no matter how much negative impact it had on the game's design, and how badly it mangled the creative vision of the group actually working on the game.

This s*** is why Fuse was transformed from a quirky funny cartoon into a hollow lifeless "Gears of War" clone, and why story/character driven adventure games like "The Last Of Us", "Mass Effect", and "Tomb Raider" go overbudget because their corporate overlords demand that they be saddled with a s****y meaningless online multiplayer mode. This s*** is destroying gaming one game at a time, and the sooner companies learn to just scale back on development/advertising budgets and give creative control to the creative teams, instead of trying to synchronize everything with what's most popular that day and spend billions of dollars on commercials, internet advertisements, and positive scores from reviewers, the sooner they'll start turning a profit again.

Here's a protip Publishers. If you let your Devs make a good game, you won't NEED to pay IGN to give it a 9.0!
#37gamefaqwatcherPosted 9/11/2013 5:03:44 AM
Wow this topic actually grew?
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#38CapnStankyPosted 9/11/2013 7:32:06 AM
I once farted so hard that it blew the doors off the TC's mobile home.
#39DesperateMonkeyPosted 9/11/2013 8:19:28 AM
NewMoonShadow posted...
SparkItUp posted...
Decimator11 posted...
That's good that they want to make a profit off of their product.


^ this...not really sure what the issue is TC


It's simple really. In gaming, there's a difference between a game that's made to be fun and then gets marketed... and a game that's made to be marketed. This s*** is why franchises like Dead Space and Resident Evil have their hearts torn out and get rebranded to look as close to modern FPS' as humanly possible.


What is this childish reasoning? Games have always been made with sales in mind. Have you even been in an earlier era of gaming? Soon as Mario became popular, people flooded the market with "me too" side scrollers. After double dragon, everyone wanted to make their own beat em ups. It was in fact worse, because back then these games were little marketed towards stupid children who bought games based on licenses hence we had a crapload of cartoon license games that played extremely similarly. Standards were so low back then and that trend continued into the SNES era.

PSX era rolls around and all the REAL innovative games were swept under the rug by everyones desire for FMVs. After FFVII, we just had FMV after FMV after FMV. Everyone jumped on the bandwagon.

I hate people pretending there was ever an era where people didn't actually focus on maximum profit when making games. The only fun developers cared for was that it was fun so people wanted to BUY IT which is the same as it is today.

@Whoever said XBL Gold was profitable

How does that have anything to do with the overall profits of the Xbox Division? XBL Gold at the moment is like a band aid they are applying after an amputation. Its one of the few things that is controlling their losses (if losing $2.5 billion can be considered controller). It seems they've blown all the money brought in by XBL already on servers, infrastructure and exclusives already and then some.
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#40-CheeseSteak-Posted 9/11/2013 8:28:27 AM
ScRui posted...
DesperateMonkey posted...
Then you are completely ignorant...

First of all, Sony as a Company is in a huge rut and has been selling off their assets to keep afloat.

Secondly, the entire PS division has made a $1.2 billion profit. That means the PS3 completely destroyed all profits the PS2 made and much of what the PSX made.

Do you understand why? This is because MS has a lot of money and they deal in using both their money and their expertise in muscling out the competition. There will no longer be days like PSX and PS2 with innocent gamers dancing around accepting whatever low standards the industry puts out. MS has set the spending bar really really high. After they lost in the PS2 era for not having exclusives, they must have spent a ridiculous amount of money muscling the PS3 because they got exclusives and timed exclusives as well as stealing exclusive status on anything from a ridiculous amount of titles like Eternal Sonata, Tales of Vesperia, Blue Dragon, FFXIII, DMC, Dead Rising, SCHMUPS, a bunch of exclusive Square RPGs, Culdcept, Bioshock, Fallout DLC and so on.

Basically, they saw what the PS2 did with timed and real exclusives and then said "well we can spend way more than those guys" for their 360 plans.

Then there is the whole software thing. MS set the bar high with profit loss on Xbox and the Xbox 360 released in 2005 with the specs of a high end gaming PC.

XBL was also ridiculously popular despite being a paid service forcing Sony to keep pace with XBL but unable to charge consumers, causing heavier losses.

This generation, both systems will see smaller losses, but as for profitable? I have no faith in that at all. MS is continuing with their reckless spending, dropping $1 billion in adverts an $1 billion on exclusives. They've also spent ridiculous amounts of money on acquiring servers which has cost several billions as well and is now subsidizing those servers to third parties for almost nothing.

Sony has the choice of either following suit, meaning they would have to spend billions that they don't have, to secure a network that allows anything remotely close to the same cloud and dedicated server support and build infrastructure from the ground up and compete with MS's massive software history, or they can do nothing and see the gap between PS+ and Gold become wider every year.

This has been MS's strategy for a long time. What did they do when Netscape was better than Internet Explorer? They muscled them out by making IE free.

In the same breath, people hate and love MS because they are willing to undercut the competition but at the same time, they stifle them. In this case however, they are undercutting another mega corporation so people don't care since Sony is just as greedy as MS ever was.


Don't know, if all this is true or not... Regardless... Puts light on the whole situation.... Great post...

Moral to the story, corporations want to make money and so do we


Indeed, but you guys need to stop bringing logic into these threads - it's unbecoming.
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