Xbox One cost Microsoft losses up to 400 million dollars.

#11shamfuruPosted 8/8/2014 3:30:27 AM
MrSpaM111 posted...
Regardless of how rich MS are, losing 400 million a year really is a lot of money. It's not sustainable to be losing that much money every year no matter how much you have in the bank. I'm not sure any company in the world would consider losses of 400 million a year to be 'pocket change'.

I dread to think what some of you are going to do when you get jobs when your older.

You : "Hey boss, our division lost 400 million dollars this year!"

Boss : "SAY WHAT!?!"

You : "Yeh, but it doesn't matter, well just take the money out of your bank account because you're so rich!"

Boss : "You're fired"


Again, for the second time.

shamfuru posted...
Every gaming company loses money on console hardware due to marketing and R&D.

How much money did Sony lose during the PS3's first year when they were selling the system for $600 but it cost $800 in parts?

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Life is normally too short to purposely seek out things you hate, but apparently that rule doesn't apply on the Xbox One board.
#12WarsuhPosted 8/8/2014 3:30:53 AM
MrSpaM111 posted...
Regardless of how rich MS are, losing 400 million a year really is a lot of money. It's not sustainable to be losing that much money every year no matter how much you have in the bank. I'm not sure any company in the world would consider losses of 400 million a year to be 'pocket change'.

I dread to think what some of you are going to do when you get jobs when your older.

You : "Hey boss, our division lost 400 million dollars this year!"

Boss : "SAY WHAT!?!"

You : "Yeh, but it doesn't matter, well just take the money out of your bank account because you're so rich!"

Boss : "You're fired"


Microsoft rakes in $149,843 in revenue in 60 seconds, and manages to convert $42,082 of that into profit. Do the math $400 million is literally nothing for Apple, Microsoft and all the other tech giants. They are actually probably having a party right now.
#13MusuoJoePosted 8/8/2014 3:41:26 AM
Lapanui posted...
They can make that back through digital game sales and xbox live subsciptions. Probably other fees. It's all about attachment rate, when more people own the console, the more likely they will subscribe to live and buy digital games.

Same with Sony and the same with Nintendo. They will have losses on consoles, especially this early on. They just need people to keep the consoles, buy games for it and keep their subscriptions up.


Seems like the logical answer to me..
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#14PreacherXWDSXPosted 8/8/2014 4:18:02 AM
MusuoJoe posted...
Lapanui posted...
They can make that back through digital game sales and xbox live subsciptions. Probably other fees. It's all about attachment rate, when more people own the console, the more likely they will subscribe to live and buy digital games.

Same with Sony and the same with Nintendo. They will have losses on consoles, especially this early on. They just need people to keep the consoles, buy games for it and keep their subscriptions up.


Seems like the logical answer to me..


This thing you call logic has no place on GameFaqs. Reported.
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#15MrSpaM111Posted 8/8/2014 4:29:22 AM
Warsuh posted...
MrSpaM111 posted...
Regardless of how rich MS are, losing 400 million a year really is a lot of money. It's not sustainable to be losing that much money every year no matter how much you have in the bank. I'm not sure any company in the world would consider losses of 400 million a year to be 'pocket change'.

I dread to think what some of you are going to do when you get jobs when your older.

You : "Hey boss, our division lost 400 million dollars this year!"

Boss : "SAY WHAT!?!"

You : "Yeh, but it doesn't matter, well just take the money out of your bank account because you're so rich!"

Boss : "You're fired"


Microsoft rakes in $149,843 in revenue in 60 seconds, and manages to convert $42,082 of that into profit. Do the math $400 million is literally nothing for Apple, Microsoft and all the other tech giants. They are actually probably having a party right now.


Pretty sure Microsoft isn't making 60 million dollars profit a day, you've just pulled those figures out of your ***
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#16LapanuiPosted 8/8/2014 4:30:22 AM
PreacherXWDSX posted...
MusuoJoe posted...
Lapanui posted...
They can make that back through digital game sales and xbox live subsciptions. Probably other fees. It's all about attachment rate, when more people own the console, the more likely they will subscribe to live and buy digital games.

Same with Sony and the same with Nintendo. They will have losses on consoles, especially this early on. They just need people to keep the consoles, buy games for it and keep their subscriptions up.


Seems like the logical answer to me..


This thing you call logic has no place on GameFaqs. Reported.


Sorry, I will make sure that I switch my brain off next time I post. Can't believe I didn't see it in the rules...
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#17Draconian-WhitePosted 8/8/2014 4:37:07 AM
Warsuh posted...
Microsoft rakes in $149,843 in revenue in 60 seconds, and manages to convert $42,082 of that into profit. Do the math $400 million is literally nothing for Apple, Microsoft and all the other tech giants. They are actually probably having a party right now


I'm surprised it's not more than that. The Redmond war chest could feed multiple third world countries for centuries, if they chose to do so.
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#18shamfuruPosted 8/8/2014 4:38:52 AM
Some people even take their helicopter to work at Microsoft.

The parking lot there looks like an exotic car show.
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Life is normally too short to purposely seek out things you hate, but apparently that rule doesn't apply on the Xbox One board.
#19MightyMunaPosted 8/8/2014 5:06:27 AM
Misleading thread. They didn't lose 400, their profits decreased by 400
#20schmarkenheimerPosted 8/8/2014 5:13:05 AM
shamfuru posted...
Every gaming company loses money on console hardware due to marketing and R&D.

How much money did Sony lose during the PS3's first year when they were selling the system for $600 but it cost $800 in parts?


Few things. Firstly, blu-ray was a very new tech at the time. Secondly, billions on R&D for CELL. Didn't they also contain PS2s for backwards compatibility? None of those apply for either the PS4/X1.
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