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Krazy Ken steps down! (SONY Reshuffles)

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Posts

  • WotanAnubisWotanAnubis Registered User regular
    edited April 2007
    Athenor wrote: »
    Yamauchi was senile.. but he was also one of the best businessmen in Japan.

    Just for my own personal curiosity, for what specific actions is (was) he considered a great businessman?
    Creating the Nintendo Entertaintment System?

  • BarcardiBarcardi All the Wizards Registered User regular
    edited April 2007
    i remain convinced that the whole ms vs Nintendo thing has nothing to do with Microsoft entering the gaming market and everything to do with the fact that they are neighbors in Redmond and Microsoft just wants the land to develop on.

    but i live in a conspiracy theory fantasy world.

  • CouscousCouscous Registered User regular
    edited April 2007
    Athenor wrote: »
    Yamauchi was senile.. but he was also one of the best businessmen in Japan.

    Just for my own personal curiosity, for what specific actions is (was) he considered a great businessman?

    http://www.forbes.com/2000/11/22/1122faces.html
    http://www.n-sider.com/articleview.php?articleid=272
    Yamauchi has played by his own rules for a long time. Born in 1927, he took over Nintendo in 1949 from his grandfather. The story goes that he felt he wasn't welcome by the company's employees, so he fired all of the old managers and many of the old workers. Nobody ever questioned his authority after that.

    He was also the person to expand Nintendo into the video game market. He also made some really ballsy moves.
    Because of the low price of the game system, the only way suppliers would agree to produce components for Nintendo was if it ordered a huge amount of chips. Yamauchi was so sure of the success Nintendo's video-game system would gain that he promised one electronic company a three-million-unit order within two years. Nintendo's video-game device, dubbed the Famicom (Family Computer), accomplished more than that. After several million units had been sold at a cost of about $100 each, there was still no sign of a slowdown.

  • AthenorAthenor Registered User regular
    edited April 2007
    Athenor wrote: »
    Yamauchi was senile.. but he was also one of the best businessmen in Japan.

    Just for my own personal curiosity, for what specific actions is (was) he considered a great businessman?
    Creating the Nintendo Entertaintment System?

    Let's go even further back than that. Yamauchi took his family's card company into the realm of toys, creating a massive financial base. Then, upon seeing 1 (ONE) arcade game demonstration, he shifted the ENTIRE company into producing arcade games.

    He gave a complete unknown the complete freedom to develop Donkey Kong.

    He managed to create a monopoly in the 80's, for better or for worse.


    Then he got senile, thought he knew better than his tech guys (Iwata and co), and started grooming people for positions they weren't ready for. He also let NOA run roughshod...

    In the end, it turned out his hand-picked sucessor was a horrible choice, so he promoted Iwata instead and installed a board that would still answer to him, and could overrule Iwata. Iwata had that system disposed of within a year, and went on to develop the DS.

    fCew0YJ.jpg
    Steam & NNID - Athenor // 3DS: 3883-5283-0471
  • NartwakNartwak Registered User
    edited April 2007
    i remain convinced that the whole ms vs Nintendo thing has nothing to do with Microsoft entering the gaming market and everything to do with the fact that they are neighbors in Redmond and Microsoft just wants the land to develop on.

    but i live in a conspiracy theory fantasy world.
    Let's expand that theory; MicroSoft's entire gaming venture is merely a circuitous ploy to accquire that land.

    Spoiler:
  • JimothyJimothy Not in front of the fox he's with the owlRegistered User regular
    edited April 2007
    Yamauchi has still done a lot for Nintendo since he left, so, while he is crazy, he's really nice.

    Athenor wrote: »
    Yamauchi was senile.. but he was also one of the best businessmen in Japan.

    And to be frank, Iwata -might- just be a better businessman than him, without the senility.

    The awesome thing about Iwata is how he's an actual developer in charge of a game company. How often does that happen? You can't help but respect the guy.

    Owlsig.jpg
  • Al SimmonsAl Simmons Registered User
    edited April 2007
    I think if most whiners spent half as much time as they do griping about the $599 PS3 doing something productive they would probably all have an XBox360, PS3 and a couple of Wiis already.

  • CouscousCouscous Registered User regular
    edited April 2007
    Al Simmons wrote: »
    I think if most whiners spent half as much time as they do griping about the $599 PS3 doing something productive they would probably all have an XBox360, PS3 and a couple of Wiis already.

    They would have to be able to find a Wii.

  • Al SimmonsAl Simmons Registered User
    edited April 2007
  • cloudeaglecloudeagle Zhu-Li, do the thing! Registered User regular
    edited April 2007
    El Viento wrote: »
    cloudeagle wrote: »
    While the PS3 is, technically speaking, a nice machine, Ken's design was a HUGE mistake in the financial sense, in that it's losing Sony tons and tons and TONS of money. It's not selling horribly, but it'll likely take years before the PS3 gets to a mass market-friendly pricepoint (i.e., sub $400) AND is cheap enough to make that they don't lose their shirts over each one sold. Meanwhile, the low sales are crimping software sales, which is where the real money is.

    I think Ken (and Sony) greatly over-estimated the desire for next-gen DVDs.

    The 360 is losing cash hand-over-fist too though.

    http://www.next-gen.biz/index.php?option=com_content&task=view&id=5374&Itemid=2
    However, the Entertainment and Devices Division, which houses the Xbox and PC gaming business along with the Zune and other products, reported decreased Q3 revenue and continuing losses.

    Microsoft said that revenue was down for the quarter because of “decreased Xbox 360 console sales.” The company shipped 500K consoles during the period, bringing the worldwide total to about 11 million consoles.

    Xbox 360 and PC software sales followed the quarterly decline in hardware, as revenue from games decreased $393 million, or 44 percent.

    Microsoft attributed the improvement in operating losses to the lower Xbox 360 console sales, as the company loses money on every Xbox 360 produced and sold. Revenue from the Mobile and Embedded Devices segment also helped improve EDD’s overall operating loss.

    They are still looking to profit in FY 2008. I don't know how (Halo 3 possibly) but they're saying they'll do it. If they don;t the shit might start hitting the fan with the shareholders.

    Yeah, Microsoft is in a bad position too, since the 360 was supposed to be the machine that actually makes them money (as opposed to the Xbox, which lost money but gave them a foothold into the market). I wonder how much of the low 360 sales are because of the manufacturing problems? And how much money Microsoft is losing with all the repairs? I am completely baffled as to why they haven't fixed the flaw yet. And that they haven't given us a price drop yet. The mass market doesn't really care about having an even bigger hard drive, they care about being able to play Halo online for cheap. And even at $400 (for an online-ready system), that's going to price a ton of Halo fans out of the market.

    3DS: 0344-9335-6762
  • The Muffin ManThe Muffin Man Registered User regular
    edited April 2007
    syndalis wrote: »
    Guek wrote: »
    why didn't it seem like anyone held that kind of attitude with the gamecube? maybe i'm just jaded but i remember a lot of doom and gloom and "olol third place, go third party too why doncha!"
    This forum is filled to the fucking gills with people who held that attitude.

    Seriously, even the Nintendo loyalists thought "Shit. Nintendo's in third-fucking-place still."

    Sure, we were more comfortable as Nintendo was turning a monster-profit, but the attitude wasn't exactly "uncommon" by anyones count.

    shamanhealingwave.jpgabilitypaladinshieldofv.png
  • SirUltimosSirUltimos Don't talk, Rusty. Just paint. Registered User regular
    edited April 2007
    Athenor wrote: »
    Athenor wrote: »
    Yamauchi was senile.. but he was also one of the best businessmen in Japan.

    Just for my own personal curiosity, for what specific actions is (was) he considered a great businessman?
    Creating the Nintendo Entertaintment System?

    Let's go even further back than that. Yamauchi took his family's card company into the realm of toys, creating a massive financial base. Then, upon seeing 1 (ONE) arcade game demonstration, he shifted the ENTIRE company into producing arcade games.

    He gave a complete unknown the complete freedom to develop Donkey Kong.

    He managed to create a monopoly in the 80's, for better or for worse.


    Then he got senile, thought he knew better than his tech guys (Iwata and co), and started grooming people for positions they weren't ready for. He also let NOA run roughshod...

    In the end, it turned out his hand-picked sucessor was a horrible choice, so he promoted Iwata instead and installed a board that would still answer to him, and could overrule Iwata. Iwata had that system disposed of within a year, and went on to develop the DS.

    Iwata actually thought he was going to be fired before he became president. He was called in Yamauchi's office everyday for about a week and interviewed by him. Iwata was asked questions like "Do you enjoy working for our company?" so he thought for sure Yamauchi was just getting ready to fire him. He was quite surprised when Yamauchi asked him to become the president.

    There's also something I want to say about the topic this thread is on, but I've gotta think about how to word it.

  • CouscousCouscous Registered User regular
    edited April 2007
    syndalis wrote: »
    Guek wrote: »
    why didn't it seem like anyone held that kind of attitude with the gamecube? maybe i'm just jaded but i remember a lot of doom and gloom and "olol third place, go third party too why doncha!"
    This forum is filled to the fucking gills with people who held that attitude.

    Seriously, even the Nintendo loyalists thought "Shit. Nintendo's in third-fucking-place still."

    Sure, we were more comfortable as Nintendo was turning a monster-profit, but the attitude wasn't exactly "uncommon" by anyones count.

    There was also a lot of "DOOOOOOMED" talked about when the PSP was announced.

  • CouscousCouscous Registered User regular
    edited April 2007
    http://www.psxextreme.com/ps3-news/1145.html
    "As a matter of course, I have the vision of Playstation 4, 5 and 6, which will merge into the network."
    He made it very clear to EE that the "roadmap" of the PS3 was "always clear in his mind," but he refused to talk more about the future when the system hit blue-violet laser shortages early on. But now that the PS3 is available in Japan, the U.S., and Europe, Kutaragi feels more comfortable in talking about the "next step." And that next step revolves around a "net-based game console." That idea is still a bit of a mystery, but the soon-to-be-former Sony executive believes the world will soon be "ready" for such a platform.

  • edited April 2007
    the problem with the net-based thing is that england is sooo behind on telecommunications it's not even funny

  • CouscousCouscous Registered User regular
    edited April 2007
    bongi wrote: »
    the problem with the net-based thing is that england is sooo behind on telecommunications it's not even funny

    And B&M stores would hate it. If they aren't going to be able to sell games, why bother stocking a console that barely nets you a profit?

  • edited April 2007
    because if they don't they'll go out of business?

  • CouscousCouscous Registered User regular
    edited April 2007
    bongi wrote: »
    because if they don't they'll go out of business?

    A net-based console would probably be based on buying games off of the internet. This would cut out the traditional stores and would at least make any sales from traditional stores secondary. It would also destroy the sales of used games. Supporting a console like that would make no sense for the business because they wouldn't profit off of the sale of the console.

  • Unco-ordinatedUnco-ordinated Registered User regular
    edited April 2007
    El Viento wrote: »
    cloudeagle wrote: »
    While the PS3 is, technically speaking, a nice machine, Ken's design was a HUGE mistake in the financial sense, in that it's losing Sony tons and tons and TONS of money. It's not selling horribly, but it'll likely take years before the PS3 gets to a mass market-friendly pricepoint (i.e., sub $400) AND is cheap enough to make that they don't lose their shirts over each one sold. Meanwhile, the low sales are crimping software sales, which is where the real money is.

    I think Ken (and Sony) greatly over-estimated the desire for next-gen DVDs.

    The 360 is losing cash hand-over-fist too though.

    http://www.next-gen.biz/index.php?option=com_content&task=view&id=5374&Itemid=2
    However, the Entertainment and Devices Division, which houses the Xbox and PC gaming business along with the Zune and other products, reported decreased Q3 revenue and continuing losses.

    Microsoft said that revenue was down for the quarter because of “decreased Xbox 360 console sales.” The company shipped 500K consoles during the period, bringing the worldwide total to about 11 million consoles.

    Xbox 360 and PC software sales followed the quarterly decline in hardware, as revenue from games decreased $393 million, or 44 percent.

    Microsoft attributed the improvement in operating losses to the lower Xbox 360 console sales, as the company loses money on every Xbox 360 produced and sold. Revenue from the Mobile and Embedded Devices segment also helped improve EDD’s overall operating loss.

    They are still looking to profit in FY 2008. I don't know how (Halo 3 possibly) but they're saying they'll do it. If they don;t the shit might start hitting the fan with the shareholders.

    Is the Zune included in the "Entertainment and Devices Division"? Because I'd say they'd be losing a ton of money on that piece of crap.

    Steam ID - LiquidSolid170 | PSN ID - LiquidSolid
  • graizurgraizur __BANNED USERS
    edited April 2007
    El Viento wrote: »
    cloudeagle wrote: »
    While the PS3 is, technically speaking, a nice machine, Ken's design was a HUGE mistake in the financial sense, in that it's losing Sony tons and tons and TONS of money. It's not selling horribly, but it'll likely take years before the PS3 gets to a mass market-friendly pricepoint (i.e., sub $400) AND is cheap enough to make that they don't lose their shirts over each one sold. Meanwhile, the low sales are crimping software sales, which is where the real money is.

    I think Ken (and Sony) greatly over-estimated the desire for next-gen DVDs.

    The 360 is losing cash hand-over-fist too though.

    http://www.next-gen.biz/index.php?option=com_content&task=view&id=5374&Itemid=2
    However, the Entertainment and Devices Division, which houses the Xbox and PC gaming business along with the Zune and other products, reported decreased Q3 revenue and continuing losses.

    Microsoft said that revenue was down for the quarter because of “decreased Xbox 360 console sales.” The company shipped 500K consoles during the period, bringing the worldwide total to about 11 million consoles.

    Xbox 360 and PC software sales followed the quarterly decline in hardware, as revenue from games decreased $393 million, or 44 percent.

    Microsoft attributed the improvement in operating losses to the lower Xbox 360 console sales, as the company loses money on every Xbox 360 produced and sold. Revenue from the Mobile and Embedded Devices segment also helped improve EDD’s overall operating loss.

    They are still looking to profit in FY 2008. I don't know how (Halo 3 possibly) but they're saying they'll do it. If they don;t the shit might start hitting the fan with the shareholders.

    Is the Zune included in the "Entertainment and Devices Division"? Because I'd say they'd be losing a ton of money on that piece of crap.

    Edited for the <poop>.

    robosagogo wrote: »
    Finally, an Apocalyptian-American superhero. I've been waiting so long.
  • Santa ClaustrophobiaSanta Claustrophobia Ho Ho Ho Disconnecting from Xbox LIVERegistered User regular
    edited April 2007
    Titmouse wrote: »
    bongi wrote: »
    because if they don't they'll go out of business?

    A net-based console would probably be based on buying games off of the internet. This would cut out the traditional stores and would at least make any sales from traditional stores secondary. It would also destroy the sales of used games. Supporting a console like that would make no sense for the business because they wouldn't profit off of the sale of the console.

    I doubt that would actually matter to console makers. I'm sure there are plenty of big box shops that would love to remove the low profit margin game sections. Digital Distribution is the future of gaming, like it or not.

    PAsig5.png
    You're muckin' with a G!
  • CouscousCouscous Registered User regular
    edited April 2007
    Titmouse wrote: »
    bongi wrote: »
    because if they don't they'll go out of business?

    A net-based console would probably be based on buying games off of the internet. This would cut out the traditional stores and would at least make any sales from traditional stores secondary. It would also destroy the sales of used games. Supporting a console like that would make no sense for the business because they wouldn't profit off of the sale of the console.

    I doubt that would actually matter to console makers. I'm sure there are plenty of big box shops that would love to remove the low profit margin game sections. Digital Distribution is the future of gaming, like it or not.

    If they remove the game sections, how are they supposed to sell the consoles? The vast majority of people still buy their hardware from traditional stores.

  • Santa ClaustrophobiaSanta Claustrophobia Ho Ho Ho Disconnecting from Xbox LIVERegistered User regular
    edited April 2007
    Titmouse wrote: »
    Titmouse wrote: »
    bongi wrote: »
    because if they don't they'll go out of business?

    A net-based console would probably be based on buying games off of the internet. This would cut out the traditional stores and would at least make any sales from traditional stores secondary. It would also destroy the sales of used games. Supporting a console like that would make no sense for the business because they wouldn't profit off of the sale of the console.

    I doubt that would actually matter to console makers. I'm sure there are plenty of big box shops that would love to remove the low profit margin game sections. Digital Distribution is the future of gaming, like it or not.

    If they remove the game sections, how are they supposed to sell the consoles? The vast majority of people still buy their hardware from traditional stores.

    So instead of three (for example) aisles of gaming stuff, they have one.

    EDIT: It probably would've been better, in retrospect, to say 'game software' sections.

    PAsig5.png
    You're muckin' with a G!
  • CouscousCouscous Registered User regular
    edited April 2007
    Titmouse wrote: »
    Titmouse wrote: »
    bongi wrote: »
    because if they don't they'll go out of business?

    A net-based console would probably be based on buying games off of the internet. This would cut out the traditional stores and would at least make any sales from traditional stores secondary. It would also destroy the sales of used games. Supporting a console like that would make no sense for the business because they wouldn't profit off of the sale of the console.

    I doubt that would actually matter to console makers. I'm sure there are plenty of big box shops that would love to remove the low profit margin game sections. Digital Distribution is the future of gaming, like it or not.

    If they remove the game sections, how are they supposed to sell the consoles? The vast majority of people still buy their hardware from traditional stores.

    So instead of three (for example) aisles of gaming stuff, they have one.

    EDIT: It probably would've been better, in retrospect, to say 'game software' sections.
    The software and controllers are pretty much the only profitable part of the gaming sections in stores. Shrinking it would decrease profits dramatically and encourage them to ignore many games.

  • Santa ClaustrophobiaSanta Claustrophobia Ho Ho Ho Disconnecting from Xbox LIVERegistered User regular
    edited April 2007
    Titmouse wrote: »
    The software and controllers are pretty much the only profitable part of the gaming sections in stores. Shrinking it would decrease profits dramatically and encourage them to ignore many games.
    Did you mean 'consoles'?

    At any rate, it doesn't matter too much. Since the DD plan will eliminate used sales, all stores that do that will pretty much close or merge into one 'super' game store. 'GameStop! Where else you gonna go?' Theoretically speaking, consoles could become cheaper to make when spinning drives are removed. By doing so, they could lower the costs to the retailers who then mark up at will.

    Even so, let's say Best Buy cuts floor space for gaming to one aisle. Now all that's left is shelf space for consoles and controllers and the like. No software at all. Will profits take a hit? Probably. But, now they have extra space for higher profit, faster selling crap. It would probably balance in the end. At least that's what the console makers and the German Shepherds would have them believe.

    Whether or not it's a good idea, that's what companies like SONY are aiming for. Tighter control on software sales (and profits) and the elimination of used games entirely. I wouldn't doubt that it would be similar to the RIAA problems and be terribly shortsighted.

    PAsig5.png
    You're muckin' with a G!
  • SirUltimosSirUltimos Don't talk, Rusty. Just paint. Registered User regular
    edited April 2007
    Does anyone know for sure whether or not Microsoft is still losing money of every 360 sold? Because if they're still lsoing money on the Xbox it paints a very grim picture for the gaming industry the way it is now. What I mean is that it may be impossible to continue with the graphical arms race after this generation, because there's just no money in it. I imagine all 3 consoles cost a shit ton of money to develop, and if it takes a long time for the company to actually make money per console sold, how likely is it that they'll actually make back the development costs of the console and the money it lost at retail? It seems to me that the only logical thing to do would be to take less of a graphical leap in order to cut development costs and actually make money on the damn thing.

    Don't take any of this as truth, merely speculation on an interesting what if situation.

  • cloudeaglecloudeagle Zhu-Li, do the thing! Registered User regular
    edited April 2007
    SirUltimos wrote: »
    Does anyone know for sure whether or not Microsoft is still losing money of every 360 sold? Because if they're still lsoing money on the Xbox it paints a very grim picture for the gaming industry the way it is now. What I mean is that it may be impossible to continue with the graphical arms race after this generation, because there's just no money in it. I imagine all 3 consoles cost a shit ton of money to develop, and if it takes a long time for the company to actually make money per console sold, how likely is it that they'll actually make back the development costs of the console and the money it lost at retail? It seems to me that the only logical thing to do would be to take less of a graphical leap in order to cut development costs and actually make money on the damn thing.

    Don't take any of this as truth, merely speculation on an interesting what if situation.

    A few months ago, iSupply estimated each 360 sold gives Microsoft a profit of $75.

    Someone earlier said that Zune sales are part of Microsoft's entertainment division too, so that might account for a lot of the deficit. Still, low 360 sales aren't helping.

    3DS: 0344-9335-6762
  • CZroeCZroe Registered User
    edited April 2007
    cloudeagle wrote: »
    SirUltimos wrote: »
    Does anyone know for sure whether or not Microsoft is still losing money of every 360 sold? Because if they're still lsoing money on the Xbox it paints a very grim picture for the gaming industry the way it is now. What I mean is that it may be impossible to continue with the graphical arms race after this generation, because there's just no money in it. I imagine all 3 consoles cost a shit ton of money to develop, and if it takes a long time for the company to actually make money per console sold, how likely is it that they'll actually make back the development costs of the console and the money it lost at retail? It seems to me that the only logical thing to do would be to take less of a graphical leap in order to cut development costs and actually make money on the damn thing.

    Don't take any of this as truth, merely speculation on an interesting what if situation.

    A few months ago, iSupply estimated each 360 sold gives Microsoft a profit of $75.

    Someone earlier said that Zune sales are part of Microsoft's entertainment division too, so that might account for a lot of the deficit. Still, low 360 sales aren't helping.

    Why does everyone think Zunes are sold at a loss? Remember: Apple says that they sell iTunes "at cost" (I think it's bullshit) for $0.99 a pop to sell more iPods at a profit. Considering that iPods actually have competitive price-per-GB (especially the flash-based players), there is probably a hefty margin in there.

    I'm looking at the Sansa Express right now. 1GB, subscription music, color screen, stick form-factor with integrated USB port (Shuffle G1 style), USB charging, AND microSD expansion. $69. The only way to make it more perfect is to add A2DP and a flip-out USB port (Samsung removed theirs from the UX-line, likely due to patents, so that probably keeps Sandisk away from that feature too).

  • syndalissyndalis Getting Classy On the WallRegistered User, Loves Apple Products regular
    edited April 2007
    No, Zunes don't sell for a loss.


    Thousands of Zunes sitting in Microsoft warehouses waiting for retailers to need them is a loss.

  • El VientoEl Viento Registered User
    edited April 2007
    cloudeagle wrote: »
    SirUltimos wrote: »
    Does anyone know for sure whether or not Microsoft is still losing money of every 360 sold? Because if they're still lsoing money on the Xbox it paints a very grim picture for the gaming industry the way it is now. What I mean is that it may be impossible to continue with the graphical arms race after this generation, because there's just no money in it. I imagine all 3 consoles cost a shit ton of money to develop, and if it takes a long time for the company to actually make money per console sold, how likely is it that they'll actually make back the development costs of the console and the money it lost at retail? It seems to me that the only logical thing to do would be to take less of a graphical leap in order to cut development costs and actually make money on the damn thing.

    Don't take any of this as truth, merely speculation on an interesting what if situation.

    A few months ago, iSupply estimated each 360 sold gives Microsoft a profit of $75.

    Someone earlier said that Zune sales are part of Microsoft's entertainment division too, so that might account for a lot of the deficit. Still, low 360 sales aren't helping.

    According to the latest press statements on Microsoft's financial reports for this year, yes, the 360 is still sold at a loss. They hope to make a profit next financial year.

    vf5bannerok6.jpg
  • Dublo7Dublo7 Registered User regular
    edited April 2007
    A special happy hour quote from Krazy Ken!
    The xbox 360 is just the Xbox 1.5, and it's only there to go after the Playstation 2

    Oh, that Ken!


    Also, all this Zune hating is making me sad. I love my Zune!
    FUCK YOU GUYS!

    [SIGPIC][/SIGPIC]
  • cloudeaglecloudeagle Zhu-Li, do the thing! Registered User regular
    edited April 2007
    El Viento wrote: »
    cloudeagle wrote: »
    SirUltimos wrote: »
    Does anyone know for sure whether or not Microsoft is still losing money of every 360 sold? Because if they're still lsoing money on the Xbox it paints a very grim picture for the gaming industry the way it is now. What I mean is that it may be impossible to continue with the graphical arms race after this generation, because there's just no money in it. I imagine all 3 consoles cost a shit ton of money to develop, and if it takes a long time for the company to actually make money per console sold, how likely is it that they'll actually make back the development costs of the console and the money it lost at retail? It seems to me that the only logical thing to do would be to take less of a graphical leap in order to cut development costs and actually make money on the damn thing.

    Don't take any of this as truth, merely speculation on an interesting what if situation.

    A few months ago, iSupply estimated each 360 sold gives Microsoft a profit of $75.

    Someone earlier said that Zune sales are part of Microsoft's entertainment division too, so that might account for a lot of the deficit. Still, low 360 sales aren't helping.

    According to the latest press statements on Microsoft's financial reports for this year, yes, the 360 is still sold at a loss. They hope to make a profit next financial year.

    Huh. Well, so much for the estimate. I thought it was a little quick for component prices on the 360 to drop that quickly. That also explains why we haven't seen a price drop yet.

    3DS: 0344-9335-6762
  • DukhatDukhat Registered User
    edited April 2007
    cloudeagle wrote: »
    El Viento wrote: »
    cloudeagle wrote: »
    SirUltimos wrote: »
    Does anyone know for sure whether or not Microsoft is still losing money of every 360 sold? Because if they're still lsoing money on the Xbox it paints a very grim picture for the gaming industry the way it is now. What I mean is that it may be impossible to continue with the graphical arms race after this generation, because there's just no money in it. I imagine all 3 consoles cost a shit ton of money to develop, and if it takes a long time for the company to actually make money per console sold, how likely is it that they'll actually make back the development costs of the console and the money it lost at retail? It seems to me that the only logical thing to do would be to take less of a graphical leap in order to cut development costs and actually make money on the damn thing.

    Don't take any of this as truth, merely speculation on an interesting what if situation.

    A few months ago, iSupply estimated each 360 sold gives Microsoft a profit of $75.

    Someone earlier said that Zune sales are part of Microsoft's entertainment division too, so that might account for a lot of the deficit. Still, low 360 sales aren't helping.

    According to the latest press statements on Microsoft's financial reports for this year, yes, the 360 is still sold at a loss. They hope to make a profit next financial year.

    Huh. Well, so much for the estimate. I thought it was a little quick for component prices on the 360 to drop that quickly. That also explains why we haven't seen a price drop yet.



    Who would've thunk a software company would have problems cutting price on a sophisticated piece of electronics.

    L2P Microsoft and partner with an electronics company that knows what they're doing.

    I predict the next Xbox will be called the Dellbox and cost 50 bucks and be twice as powerful as the 360.

    You know it's coming.

    Holla!
  • syndalissyndalis Getting Classy On the WallRegistered User, Loves Apple Products regular
    edited April 2007
    Dublo7 wrote: »
    A special happy hour quote from Krazy Ken!
    The xbox 360 is just the Xbox 1.5, and it's only there to go after the Playstation 2

    Oh, that Ken!


    Also, all this Zune hating is making me sad. I love my Zune!
    FUCK YOU GUYS!
    Oh, I don't hate the Zune.

    In fact, i think it's an overall better product than the iPod currently, for the features and interface it offers.

    That still doesn't change the fact that it's an iPod world, and they aren't selling for shit.

  • graizurgraizur __BANNED USERS
    edited April 2007
    Syndalis are you ok with me sort of copying your style of avatar?

    robosagogo wrote: »
    Finally, an Apocalyptian-American superhero. I've been waiting so long.
  • syndalissyndalis Getting Classy On the WallRegistered User, Loves Apple Products regular
    edited April 2007
    graizur wrote: »
    Syndalis are you ok with me sort of copying your style of avatar?
    No.

    I am going to call the avatar police and have them kick your ass.

    :roll:

  • darleysamdarleysam Registered User regular
    edited April 2007
    syndalis wrote: »
    graizur wrote: »
    Syndalis are you ok with me sort of copying your style of avatar?
    No.

    I am going to call the avatar police and have them kick your ass.

    :roll:

    dude, stop quoting yourself

  • CarnivoreCarnivore Registered User
    edited April 2007
    Fuck digital distribution.

    I like having a boxed copy with a manual.

    Special editions with the bonus DVDs and art books and all that jazz.

    Digital distribution is not the future, it will be big but wont replace hard copies.

    hihi.jpg
  • CarnivoreCarnivore Registered User
    edited April 2007
    Nintendo wanna hire him?

    Iwata becomes super evil sarcasm machine.


    Burns Sony like hes Reggie or something.

    hihi.jpg
  • Bionic MonkeyBionic Monkey Registered User, ClubPA
    edited April 2007
    Titmouse wrote: »
    bongi wrote: »
    because if they don't they'll go out of business?

    A net-based console would probably be based on buying games off of the internet. This would cut out the traditional stores and would at least make any sales from traditional stores secondary. It would also destroy the sales of used games. Supporting a console like that would make no sense for the business because they wouldn't profit off of the sale of the console.

    Unless they function as a hub for those without a connection capable of downloading several gigs in anything shorter than a week.

    sig_megas_armed.jpg
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