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Anyone else think that Microsoft is not losing any money at all when it comes to

#1Hucast9Posted 12/4/2012 11:16:47 AM
Anyone else think that Microsoft is not losing any money at all when it comes to the Xbox brand? It has been said that Xbox 1 lost a lot of money. Xbox 360 has lost money at first, but is now about even or making money when it comes to hardware sales.

Let's take a look at some other things though. Xbox 360 has been out for 7 years. At $40 per year (a bare minimum estimate) that's $280 for each person who has Xbox live. There are also the controllers which cost $49.99 retail price. Let's not forget the dlc from hundreds of games which Microsoft gets a share of.

These people are rolling is dough. They could easiliy release a powerful console that could run the Samaritan tech demo in real time at the cost of $500.
#2Redjoker777Posted 12/4/2012 11:22:53 AM
You have to consider a lot more than that. There are costs to maintaing Live, employee fees, costs of products. Not to mention back door deals with publishers over exclusivity and what not.

Does Microsoft have a ton of money? Absolutely. Is there video game portion extremely profitable? I have no idea.
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#3Hucast9(Topic Creator)Posted 12/4/2012 11:24:41 AM
Redjoker777 posted...
You have to consider a lot more than that. There are costs to maintaing Live, employee fees, costs of products. Not to mention back door deals with publishers over exclusivity and what not.

Does Microsoft have a ton of money? Absolutely. Is there video game portion extremely profitable? I have no idea.


All I know is that i've gone through about 4 controllers at $35-$50 a pop thanks to Call of Duty. That's on top of the Xbox Live and dlc points. This must be a gold mine for them.
#4Hucast9(Topic Creator)Posted 12/4/2012 11:28:15 AM
To all of you out there:

- Estimate how many controllers you've gone through
- Have you been with Live from the start? How many years?
- How mcuh money have you spent on dlc points?
#5RetroFanGirlPosted 12/4/2012 11:37:00 AM
They've been okay for awhile now.
http://www.joystiq.com/2008/01/24/the-xbox-turns-a-profit/
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#6SerOnionKnightPosted 12/4/2012 12:11:53 PM
Supposedly Microsoft charges an obscene amount of money to display ads to you via the dash. That along with their policy of monetizing everything assures you that they are pulling as much as possible. There is a reason that they have updates the dashes with more and more ads every revision.

http://penny-arcade.com/report/editorial-article/ads-up-games-down-the-ugly-profitable-truth-about-xbox-live-advertising

Good thing if you are a shareholder for MS cause they are going to need to find a product that keeps the income up soon. Windows 8 and their mobile phones are about as well received as the Zune.
#7JRS511Posted 12/4/2012 12:22:07 PM
Considering mostly everyone I know has gone through multiple consoles I'd say they are probably doing ok. I'm on number 4 myself.
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#8TheBlueStigPosted 12/4/2012 12:55:24 PM
Redjoker777 posted...
There are costs to maintaing Live

Those costs are paid for by developers and outside advertisers by them paying for ads on the dashboard.

The biggest tile on the Home tab generates $71,400+ dollars a day, half a million dollars a week. That's enough to pay for every marketplace server's operation fees for a very long time, and that's just ONE WEEK worth of cash income, it's $26 Million a year just for that ONE TILE and they charge for every tile where you see a game, movie, music, or product advertised.

They also charge developers for licensing just to make games on the system, they charge 4 to 5 figures each for devkits, and they charge a per-gigabyte bandwidth charge for every file on the marketplace, as well as taking a percentage cut of every transaction on the marketplace.

The marketplace is making more money than you think, and most of it is coming from developers. Also don't forget how many people pay for Gold, that's pure profit.
#9CapwnDPosted 12/4/2012 1:03:29 PM
From: JRS511 | #007
Considering mostly everyone I know has gone through multiple consoles I'd say they are probably doing ok. I'm on number 4 myself.

Who actually buys 4 consoles. With a 3 year warranty you would have bought 2 at the most.

Now PS3 on the other hand... with the flimsy one year warranty and shabby fist build, it cost me $957 to have one working PS3. With Xbox I never had to buy a replacement or pay for a repair.
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#10Killah PriestPosted 12/4/2012 1:14:26 PM
Who actually buys 4 consoles. With a 3 year warranty you would have bought 2 at the most.

me, more than 4 actually.

considering I now have 6 working consoles... one was free tho.

I always buy a new one and get the old one repaired too.
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