is Microsoft losing or gaining money on the xbox one?

#41slyman19Posted 5/6/2014 7:43:55 PM
orestes1981 posted...
slyman19 posted...
In all honesty, no one knows for sure. It's possible they are profiting as they said they were going to break even or make a small profit. If they were correct and even factoring in the $450 sale price, they would make a profit off Xbox One when Xbox Live, accessories, games, media, licensing, ect is taken into account. Don't absolutely rely on breakdowns as they people doing it don't know the deals Microsoft has made and are simply guessing.


So, the $450 was not a rush to get people to buy more Xbox Ones, but a strategic plan to get...more people to buy at a lower price?

Where did I say anything like that?

Really, the was not designed to help make money short term. It was about them profiting in the long term because of XBL and people buying games.

Actually, they flat out said they were breaking even or making a profit on launch day.

Throwing in a free game and a price cut? They were definitely not making money after that. That is serious damage control to argue that a company makes more money after a price cut.


Where the hell did I say they were making more money after the sale price? You don't know if they were losing money after that short time drop.
#42Styrof0amPosted 5/6/2014 11:01:05 PM
SoulTrapper posted...
Styrof0am posted...

Could you point out exactly where it says they're calculating those parts at bulk price?


Of course not, I never made that claim either.
You claimed they were using retail price, so I assume you have evidence to back that up.

Nope, no evidence. That was based on assumption and Yusuf Mehdi's statement. Sorry, should've been clearer on that.


A 7790 (which is the closest to the xbox GPU) sells for about $150 depending on where you get it from

I'm certain I saw one for around $120, I think it was on newegg, but now i can't find it


It was available at major retailers with the inclusion of two games at a lower price just a little while ago.
It could have been a temporary deal, I'm not certain of that, I don't live in the US.

Those retailers buy in bulk, they don't actually pay MicroSoft $500/xbox.

But did MS ever lower the price or run a sale from their own outlets?
I'm located in a tier country, so I haven't really paid attention to prices on XB1 abroad

And was the pricedrops on Amazon backed by MS (eg. by providing cheap digital copies of TF, that MS of course would have to pay EA for)?
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#43SoulTrapperPosted 5/7/2014 12:10:06 AM
Styrof0am posted...

Nope, no evidence. That was based on assumption and Yusuf Mehdi's statement. Sorry, should've been clearer on that.


Alright, I was wondering if I missed something.



I'm certain I saw one for around $120, I think it was on newegg, but now i can't find it


Newegg has sales occasionally, could have been one of those.



But did MS ever lower the price or run a sale from their own outlets?
I'm located in a tier country, so I haven't really paid attention to prices on XB1 abroad

And was the pricedrops on Amazon backed by MS (eg. by providing cheap digital copies of TF, that MS of course would have to pay EA for)?


I have no idea, I have no interest in buying an xbox one until the remove the kinect and it isn't officially available in the country I live in.
I go by what I see posted on this board from time to time.

I think those price drops are always backed by the company that produces the product.
There's no way Amazon or any retailer would go selling at a loss, which would mean they either buy xboxes at an really low price (around $400 or something) or they charge back the difference to MS.

Both cases would indicate that MS is most likely taking a loss and the second one would indicate that they gave the okay for the lower price/including a free game.
#44Styrof0amPosted 5/7/2014 12:20:13 AM
SoulTrapper posted...
There's no way Amazon or any retailer would go selling at a loss, which would mean they either buy xboxes at an really low price (around $400 or something) or they charge back the difference to MS.

Agreed, and I think MS took a huge loss on TF, but it being an online only game, they expect to offset that loss with XBL Gold supscriptions.

So Amazon may sell consoles with a thin margin for profit, but a huge profit on the bundled game(s).

This might also mean MS is not taking a loss on te console itself, but rather on all the TF licenses they've bought from EA (my guess is the bought at least a million).
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#45SoulTrapperPosted 5/7/2014 1:47:09 AM(edited)
Styrof0am posted...

Agreed, and I think MS took a huge loss on TF, but it being an online only game, they expect to offset that loss with XBL Gold supscriptions.

So Amazon may sell consoles with a thin margin for profit, but a huge profit on the bundled game(s).

This might also mean MS is not taking a loss on te console itself, but rather on all the TF licenses they've bought from EA (my guess is the bought at least a million).


TF only sold less than a million copies on both PC and Xbox one in the US, so it will be a while before they recoup their loss through Xbox gold subscriptions.

It's possible they're only taking a loss on the games, but they'd be taking a loss with every console sold regardless.
#46oldhbk76Posted 5/7/2014 3:42:03 AM
well, there not taking loss`s on every console sold like Sony, so my guess would be gaining money
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#47Styrof0amPosted 5/7/2014 4:23:58 AM
SoulTrapper posted...
It's possible they're only taking a loss on the games, but they'd be taking a loss with every console sold regardless.

Still not sure, and I doubt we'll ever know for certain. They could be hiding losses in R&D (hence Yusuf mehdi's statement), while showcasing income from supscriptions. In the end their goal is to meet sales targets and please shareholders.
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