Xbox boss: Microsoft won't sell us off

#61ErevilePosted 4/14/2014 4:42:12 PM
Xbox may actually be the most relevant brand from Microsoft.
Windows hasn't been favored for years now. That Zune thing is just gone, right?

Since he said "with consumers" it seems like straight talk with an official over-tone. Consumers like Xbox more than anything else Microsoft has to offer.
I never expected anyone associated with Microsoft to come to this realization, though.
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#62SabramPosted 4/19/2014 5:43:26 AM
Sin_Angelus_ posted...
Sabram posted...
So yeah, the entire company may have record profits, but their consumer electronics are flagging even more behind.


Not too bad though, read a bit further:

On the consumer side of things, Microsoft might eventually make some good money from Surface, Xbox, and Windows Phone, but at this point I think its pretty certain that were not going to see a massive billions-of-dollars-in-profit breakout hit like the iPad or iPhone. At best, Microsoft can expect some steady revenue and profit growth from the Xbox and if it plays its cards right, 2014 might finally be the year that Surface and Windows Phone turn a profit.

If anything, they'll cut Surface and/or Windows phone first. And again, all the investing they've done in the X1, controllers, Kinect, and exclusives, is just further proof they'll stick with it for awhile. As long as they don't have another RROD fiasco, which I think they're pretty much clear of at this point, Xbox will start making a decent profit eventually.


The last couple lines of that part you quoted are telling as well. The person who wrote it does not expect MS to gain any profit from the Xbox this year. Possibly even next year, they just said "Eventually"

Keep in mind though, that to make a profit, the sales would have to be balanced against the costs (duh) Problem is, the biggest costs right now for the Xbox is A: Advertising and B: Securing games. At some point the Xbox sales would have to be able to round off that bell curve where the amount gained from sales is greater than the amount spent on A+B to generate those sales. As time goes on however, if the situation doesnt improve the costs of A+B will increase, while the amount of revenue generated from sales will decrease (price drops, bundles, etc)

It will take some time, but all i'm really saying is this, MS needs to do something drastic soon, or this slippery slope their on will only get worse.

oh and BTW fanboymaycry, here's research.

http://ps4daily.com/2013/11/playstation-4-cost-to-build/
"PS4 costs $381 to build, leaving only $18 profit margin for Sony"

Sooo... yeah. I wasnt that wrong now was i?
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#63bgwilly255Posted 4/19/2014 6:35:02 AM
Spetsnaz420 posted...
chrish909 posted...
U guys realize sony will likely be selling the playstation brand before they go bankrupt right? Sonys stock rating is junk.

http://www.forbes.com/sites/maggiemcgrath/2014/01/27/sony-credit-cut-to-junk-status-as-smartphones-cannibalize-its-tv-and-pc-businesses/


Yeah that's exactly what a company facing bankruptcy should do... Sell their profitable divisions... How are you not MS's CEO by now is beyond me


Sony already sold one of it's very profitable stocks, Final Fantasy. And yes a business would (and have) sell their most profitable "divisions" in order to avoid going under. They would sell it off with hopes that the money gained could be reinvested into the company so that they can become profitable again. It's actually basic economics, I learned it in Highschool. When corporations are in danger of going down they will sell what will make them the most money.
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#64FPS_hitmanPosted 4/19/2014 7:17:55 AM
Wow this is disturbing and accomplish the opposite of what they wanted to say right now. This is the kind of talk right before lay offs or shut downs.

What purpose does this accomplish aside from confirming there is talk about Xbox division being disbanded.

Where there is smoke there is fire.....this maybe worst news possible for Xbox.
#65SabramPosted 4/19/2014 8:27:37 AM
bgwilly255 posted...
Spetsnaz420 posted...
chrish909 posted...
U guys realize sony will likely be selling the playstation brand before they go bankrupt right? Sonys stock rating is junk.

http://www.forbes.com/sites/maggiemcgrath/2014/01/27/sony-credit-cut-to-junk-status-as-smartphones-cannibalize-its-tv-and-pc-businesses/


Yeah that's exactly what a company facing bankruptcy should do... Sell their profitable divisions... How are you not MS's CEO by now is beyond me


Sony already sold one of it's very profitable stocks, Final Fantasy. And yes a business would (and have) sell their most profitable "divisions" in order to avoid going under. They would sell it off with hopes that the money gained could be reinvested into the company so that they can become profitable again. It's actually basic economics, I learned it in Highschool. When corporations are in danger of going down they will sell what will make them the most money.


Square-Enix stock has dropped by over 50% in the last year. Right now it isnt at the lowest point it HAS been at over the last year, but it still isn't in great shape. SE currently has a >60% chance of Bankruptcy according to macroaxis, the same site that others are touting around that 79% for Sony.

Which is no longer accurate BTW, Sony's chance of bankruptcy in 2 years has dropped to 46%, while Nintendo's has risen to 75%.
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#66BPSatsukiPosted 4/19/2014 8:31:06 AM
when ur other consumer products named like bing, kin, zune, no wonder it's the most successful within the company
#67kyncaniPosted 4/20/2014 6:13:41 AM
It's like being chased by the Grim Reaper ;)
#68Private_NoobPosted 4/20/2014 10:03:38 AM
thegamer00 posted...
Sony is going bankrupt. So it is nowhere near the same.


No.
Thy Holy Play Station Four will single-handedly save Sony.
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#69Sin_Angelus_Posted 4/23/2014 11:15:56 PM
Sabram posted...
The person who wrote it does not expect MS to gain any profit from the Xbox this year. Possibly even next year, they just said "Eventually"


I read "steady revenue growth and profit from Xbox."

Sabram posted...
Keep in mind though, that to make a profit, the sales would have to be balanced against the costs (duh) Problem is, the biggest costs right now for the Xbox is A: Advertising and B: Securing games. At some point the Xbox sales would have to be able to round off that bell curve where the amount gained from sales is greater than the amount spent on A+B to generate those sales. As time goes on however, if the situation doesnt improve the costs of A+B will increase, while the amount of revenue generated from sales will decrease (price drops, bundles, etc)


Yes but also keep in mind the solid attach rate that Xbox One has, and game sales is their biggest money maker. They're already selling at a better rate than 360 did, and assuming there isn't another RROD fiasco, which they're pretty much clear of at this point, they're certainly set to make a profit eventually, since 360 would have if it weren't for that.

Sabram posted...
It will take some time, but all i'm really saying is this, MS needs to do something drastic soon, or this slippery slope their on will only get worse.


I think they're on the right track- they dropped the price on the console to get more sales, which makes sense considering their money is made on game sales, and they've invested 1 billion in new studios. Those 2 things are going to get people to buy systems and buy games. Keep in mind they're not doing bad as far as console sales go, in fact they're doing the best they've ever done- Sony just happens to be doing better.

Sabram posted...
http://ps4daily.com/2013/11/playstation-4-cost-to-build/
"PS4 costs $381 to build, leaving only $18 profit margin for Sony"

Sooo... yeah. I wasnt that wrong now was i?


Well I think our 2 articles are kind of a wash since I can't really tell which is more reputable, but yes you did have some proof to back that up.