3 years warranty bring 1billion possible cost to microsoft???

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jrpgliker

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#1 jrpgliker
Member since 2006 • 663 Posts

http://www.gamespot.com/news/6173633.html

seems like microsoft will never earn profits from their console just like xbox.

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darklord888

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#2 darklord888
Member since 2004 • 8382 Posts
Who cares? As long as they keep making them and putting out games I'll be happy.
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MCGSMB

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#3 MCGSMB
Member since 2007 • 2149 Posts
.... uhh yeah of course they will.
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PS3ownzzzzzzLOL

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#4 PS3ownzzzzzzLOL
Member since 2007 • 42 Posts

Thanks for your efforts Microsoft!!!! and please continue MAKING MAJOR DONATIONSfor the poor

Sorry my bad englisj

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-Sir-Poof-

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#5 -Sir-Poof-
Member since 2006 • 4544 Posts
From a business stand point their gaming division has been a disaster....yet lems still believe Sony will be the one to jump out of the console race.
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#6 Zenkuso
Member since 2006 • 4090 Posts

http://www.gamespot.com/news/6173633.html

seems like microsoft will never earn profits from their console just like xbox.

jrpgliker

Not really the just keep the price at what it is keeping with the what 70$ profit they are making and wait another year for a price drop or they just say "screw it" and let the hugh vista, new office and other profits make up for the loss :D Just like sony!

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#7 PS3ownzzzzzzLOL
Member since 2007 • 42 Posts

From a business stand point their gaming division has been a disaster....yet lems still believe Sony will be the one to jump out of the console race.-Sir-Poof-

spoken like a true SONY FANBOY

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DaysAirlines

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#8 DaysAirlines
Member since 2006 • 9537 Posts
For a company that profits 3 billion dollars every quater of the year I doubt they'll shed a tear for this.
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DaysAirlines

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#9 DaysAirlines
Member since 2006 • 9537 Posts
From a business stand point their gaming division has been a disaster....yet lems still believe Sony will be the one to jump out of the console race.-Sir-Poof-
Sony lost 2 billion dollars last quater.
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Heil68

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#10 Heil68
Member since 2004 • 60831 Posts
[QUOTE="-Sir-Poof-"]From a business stand point their gaming division has been a disaster....yet lems still believe Sony will be the one to jump out of the console race.DaysAirlines
Sony lost 2 billion dollars last quater.

I agree...although 3rd Qt. was 4.93 BILLION REDMOND, Wash. — Apr. 26, 2007 — Microsoft Corp. today announced revenue of $14.40 billion for the quarter ended March 31, 2007, a 32% increase over the same period of the prior year. This revenue drove record profits with operating income of $6.59 billion and net income of $4.93 billion. Diluted earnings per share for the quarter grew 72% to $0.50, and included $0.02 in tax benefits and $0.01 in legal charges. They make 20 billion dollars a year NET PROFIT. Long as mom and dad Windows/Office bring home the bacon, little X360 can go out and play.
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istayonfireboy

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#11 istayonfireboy
Member since 2007 • 600 Posts
[QUOTE="jrpgliker"]

http://www.gamespot.com/news/6173633.html

seems like microsoft will never earn profits from their console just like xbox.

Zenkuso

Not really the just keep the price at what it is keeping with the what 70$ profit they are making and wait another year for a price drop or they just say "screw it" and let the hugh vista, new office and other profits make up for the loss :D Just like sony!

vista aint lookin so good and the zune is damn near dead shoot it is dead. their in the red halo 3 will put them in the black. but if they lose this 1 billion in the game division and they do this price drop they will push the game division even deeper in the red. sony's game division is still in the black because of the ps2 and the psp mostly the ps2. micro killed off the xbox wich could have put the game divison back in the black. but bill gates could care less about the 360 so if the game division goes he wont cry one bit

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Heil68

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#12 Heil68
Member since 2004 • 60831 Posts
[QUOTE="Zenkuso"][QUOTE="jrpgliker"]

http://www.gamespot.com/news/6173633.html

seems like microsoft will never earn profits from their console just like xbox.

istayonfireboy

Not really the just keep the price at what it is keeping with the what 70$ profit they are making and wait another year for a price drop or they just say "screw it" and let the hugh vista, new office and other profits make up for the loss :D Just like sony!

vista aint lookin so good and the zune is damn near dead shoot it is dead. their in the red halo 3 will put them in the black. but if they lose this 1 billion in the game division and they do this price drop they will push the game division even deeper in the red. sony's game division is still in the black because of the ps2 and the psp mostly the ps2. micro killed off the xbox wich could have put the game divison back in the black.

No, you're wrong REDMOND, Wash. — Apr. 26, 2007 — Microsoft Corp. today announced revenue of $14.40 billion for the quarter ended March 31, 2007, a 32% increase over the same period of the prior year. This revenue drove record profits with operating income of $6.59 billion and net income of $4.93 billion. Diluted earnings per share for the quarter grew 72% to $0.50, and included $0.02 in tax benefits and $0.01 in legal charges. Sony also suffered its biggest quarterly loss for four years for the period from January to March 2007, with a net loss of JPY 67.6 billion (EUR 413m). Sony's Game division recorded a JPY 232.3 billion (EUR 1.4 bn) loss, primarily due to selling the PS3 lower than the manufacturing price, as well as the associated costs of the worldwide launch.
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Zenkuso

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#13 Zenkuso
Member since 2006 • 4090 Posts
[QUOTE="Zenkuso"][QUOTE="jrpgliker"]

http://www.gamespot.com/news/6173633.html

seems like microsoft will never earn profits from their console just like xbox.

istayonfireboy

Not really the just keep the price at what it is keeping with the what 70$ profit they are making and wait another year for a price drop or they just say "screw it" and let the hugh vista, new office and other profits make up for the loss :D Just like sony!

vista aint lookin so good and the zune is damn near dead shoot it is dead. their in the red halo 3 will put them in the black. but if they lose this 1 billion in the game division and they do this price drop they will push the game division even deeper in the red. sony's game division is still in the black because of the ps2 and the psp mostly the ps2. micro killed off the xbox wich could have put the game divison back in the black. but bill gates could care less about the 360 so if the game division goes he wont cry one bit

Vista not doing so good? It jumped microsofts profits up 32% last quater! You can live under a rock but considering vista wasn't out long before the last quater profit report was annouced your in denial. Windows is and still will be the big mainstream os used by 80% of the world until someone can knock microsoft down and i don't think thats gonna happen anytime soon. Zune yeah its dead pretty much, a bad business invest but hey thats business.

And as pointed out before you posted, sony is lossing 200+ per console at the moment, is trying to make cost cuts on its console and manufacturing operations to try and low the price of the ps3 and is already in 2 billions worth of debt and more going with each console sold and your tellin me microsofts in the black with a billion dollar loss cause of the new extended 3 years warranty? God damn you need your head checked.

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Verge_6

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#14 Verge_6
Member since 2007 • 20282 Posts
So many people out of touch with the financial situations of Sony and Microsoft in this thread, it's not even funny.
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#15 Aqua-Vitae
Member since 2007 • 323 Posts

[QUOTE="-Sir-Poof-"]From a business stand point their gaming division has been a disaster....yet lems still believe Sony will be the one to jump out of the console race.PS3ownzzzzzzLOL

spoken like a true SONY FANBOY

I don't think Sir-Poof is a Sony fanboy. At least, not from what I've seen.

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#16 Paktahn
Member since 2002 • 2093 Posts
Only if there is lots of 360 failures within that time period. It's a show of faith in their product and probably designed to counter all the hype about bad hardware.
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#17 PBSnipes
Member since 2007 • 14621 Posts
Its a high cost but I think its the right choice. MS knows the Xbox brand is a long term investment and they don't want to turn off any customers. MS would rather keep the brand strong now than risk its future for a small profit(at least compared to the rest of the company).
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#18 istayonfireboy
Member since 2007 • 600 Posts
[QUOTE="istayonfireboy"][QUOTE="Zenkuso"][QUOTE="jrpgliker"]

http://www.gamespot.com/news/6173633.html

seems like microsoft will never earn profits from their console just like xbox.

Zenkuso

Not really the just keep the price at what it is keeping with the what 70$ profit they are making and wait another year for a price drop or they just say "screw it" and let the hugh vista, new office and other profits make up for the loss :D Just like sony!

vista aint lookin so good and the zune is damn near dead shoot it is dead. their in the red halo 3 will put them in the black. but if they lose this 1 billion in the game division and they do this price drop they will push the game division even deeper in the red. sony's game division is still in the black because of the ps2 and the psp mostly the ps2. micro killed off the xbox wich could have put the game divison back in the black. but bill gates could care less about the 360 so if the game division goes he wont cry one bit

Vista not doing so good? It jumped microsofts profits up 32% last quater! You can live under a rock but considering vista wasn't out long before the last quater profit report was annouced your in denial. Windows is and still will be the big mainstream os used by 80% of the world until someone can knock microsoft down and i don't think thats gonna happen anytime soon. Zune yeah its dead pretty much, a bad business invest but hey thats business.

And as pointed out before you posted, sony is lossing 200+ per console at the moment, is trying to make cost cuts on its console and manufacturing operations to try and low the price of the ps3 and is already in 2 billions worth of debt and more going with each console sold and your tellin me microsofts in the black with a billion dollar loss cause of the new extended 3 years warranty? God damn you need your head checked.

do i have to pull up that news that gamespot said a while back about when they said that halo 3 would put the micro game division back in the black wait i got something for u http://www.gamespot.com/pages/news/story.php?sid=6171483&part=rss&subj=6171483. their u go littile **** ban me gamespot i dont give a **** iam the fallen angel

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popkrnpimp

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#19 popkrnpimp
Member since 2007 • 25 Posts

thisis Microsoft's way of keeping up with the rumoured price drop for ps3 they don't want people jumping the boat just because of the ring of death.

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#20 subrosian
Member since 2005 • 14232 Posts

So many people out of touch with the financial situations of Sony and Microsoft in this thread, it's not even funny.Verge_6

That they're both profitable companies - are you bothered that people don't understand why Microsoft benefits by taking a loss on the Xbox 360, or that, really, without a good look at the books, we have no idea what's going on?

For people without accounting experience, it's hard to understand why Sony would keep an unprofitable gaming division. However, what they don't understand is that Sony could be *less profitable* as a company by removing an unprofitable division.

"Subrosian - you've lost it, this makes absolutely no sense. How can you be *less profitable* overall by removing your unprofitable divisions?"

Cost allocation

No it doesn't make sense, it doesn't unless you understand accounting intimately, in which case you'd say "no, he's right, we have to know what method Sony is using to allocate costs - it is possible they're allocating a large portion of the company's fixed costs to the gaming division, based on some metric, and that the gaming division is taking in enough to cover a large portion of those costs, while covering their own variable costs - and that without that division, Sony would have made less overall because the other divisions would have taken on a greater share of the overhead."

Anyway, I believe Microsoft will cut the price of the Xbox 360, because it is not in their best interest to allow the PS3 even a few months to gain momentum. Also, it simply wouldn't make sense to allow Sony a "free move" in this business game - if they wait, when they decide to price drop, Sony could price drop again - MS would be putting them in control.

Instead, Microsoft should "tit-for-tat", price drop by $100, and send out a strong message - "anything Sony can do, we can do too - we're going to ride them down the price curve until they're obliterated". Matching their price drops dollar-for-dollar would scare the crap out of Sony - I would push MS to go so far as to make an announcement "we will match any price drops Sony makes on the PS3 the same day".

From the business standpoint, this would stop Sony from starting a price war - which while beneficial to consumers, would hurt both Sony and Microsoft. Of course, I'd like a price war, I've held off on buying either system at this point, I will not give in and buy a $399 Xbox 360, because I believe this is too much money for a console - when they hit the $299 price point with the premium, I will reward them with a sale.

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Zenkuso

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#21 Zenkuso
Member since 2006 • 4090 Posts
[QUOTE="Zenkuso"][QUOTE="istayonfireboy"][QUOTE="Zenkuso"][QUOTE="jrpgliker"]

http://www.gamespot.com/news/6173633.html

seems like microsoft will never earn profits from their console just like xbox.

istayonfireboy

Not really the just keep the price at what it is keeping with the what 70$ profit they are making and wait another year for a price drop or they just say "screw it" and let the hugh vista, new office and other profits make up for the loss :D Just like sony!

vista aint lookin so good and the zune is damn near dead shoot it is dead. their in the red halo 3 will put them in the black. but if they lose this 1 billion in the game division and they do this price drop they will push the game division even deeper in the red. sony's game division is still in the black because of the ps2 and the psp mostly the ps2. micro killed off the xbox wich could have put the game divison back in the black. but bill gates could care less about the 360 so if the game division goes he wont cry one bit

Vista not doing so good? It jumped microsofts profits up 32% last quater! You can live under a rock but considering vista wasn't out long before the last quater profit report was annouced your in denial. Windows is and still will be the big mainstream os used by 80% of the world until someone can knock microsoft down and i don't think thats gonna happen anytime soon. Zune yeah its dead pretty much, a bad business invest but hey thats business.

And as pointed out before you posted, sony is lossing 200+ per console at the moment, is trying to make cost cuts on its console and manufacturing operations to try and low the price of the ps3 and is already in 2 billions worth of debt and more going with each console sold and your tellin me microsofts in the black with a billion dollar loss cause of the new extended 3 years warranty? God damn you need your head checked.

do i have to pull up that news that gamespot said a while back about when they said that halo 3 would put the micro game division back in the black wait i got something for u

You dont read do you...

Goldman-Sachs expects first-week sales of Bungie's shooter to reach about $170 million, giving Microsoft's gaming division its first profitable quarter.

You are an idiot sir.

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CAlNlAC

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#22 CAlNlAC
Member since 2006 • 689 Posts
LOL. So today they announce this warranty extension and I think to myself great news I guess but I won't be needing it as I have had no problems with my launch 360. Wrong. Later on the very same day only hours after hearing the news I go to play my 360 but it gives me the rings of death... I guess a part of that 1 billion will be goin towards fixing my 360. But yeah, instead of being all angry about it, I actually think its quite funny that both would happen on same day like some kinda evil coincidence. Anyway I guess my Ps3 and Wii will be getting some extra attention for a little while.
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Pariah_001

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#23 Pariah_001
Member since 2003 • 4850 Posts

Heil,

And now if you will please compare Sony's net profit from the PS2, not to mention the other twenty dozen divisions they have pulling in cash non-stop, with Microsoft's lack of profit from either console they've endorsed and publicized, we'd have a less lop-sided comparison.

Microsoft proves itself inferior when it comes to organizing their game division. Sony's other divisions may be pulling the gaming divisions weight right now--That was forseen from the beginning. But the PS2's reigning success and massive user-base so far eclipses both Nintendo and Microsoft's track record.

Microsoft's had to drag its consoles through one generation and, forseeably, they will be doing so with the X360--Especially with this billion dollar drop over the most ridiculous fumble seen in console history; Microsoft may be able to sieze a fanbase before the other guy, but they fail at being able to produce a reliable console.

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Heil68

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#25 Heil68
Member since 2004 • 60831 Posts

Heil,

And now if you will please compare Sony's net profit from the PS2, not to mention the other twenty dozen divisions they have pulling in cash non-stop, with Microsoft's lack of profit from either console they've endorsed and publicized, we'd have a less lop-sided comparison.

Microsoft proves itself inferior when it comes to organizing their game division. Sony's other divisions may be pulling the gaming divisions weight right now--That was forseen from the beginning. But the PS2's reigning success and massive user-base so far eclipses both Nintendo and Microsoft's track record.

Microsoft's had to drag its consoles through one generation and, forseeably, they will be doing so with the X360--Especially with this billion dollar drop over the most ridiculous fumble seen in console history; Microsoft may be able to sieze a fanbase before the other guy, but they fail at being able to produce a reliable console.

Pariah_001
I gave total company profits and losses. I should of said MS lost 315 million dollars, compared to Sony's 1.6 billion dollar loss in the gaming division. . Total company numbers are correct and have been reported. Sony LOST 1.4 billion as a whole last qt, MS was UP in profits and made 4.93 billion. S
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#26 DrCoCoPiMp
Member since 2005 • 4088 Posts

[QUOTE="-Sir-Poof-"]From a business stand point their gaming division has been a disaster....yet lems still believe Sony will be the one to jump out of the console race.PS3ownzzzzzzLOL

spoken like a true SONY FANBOY

lol, you are like the worst fanboy in the thread

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EvilZero86

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#27 EvilZero86
Member since 2005 • 324 Posts

LMFAO...so much for the "We make profit now".... :lol: :lol: :lol:

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-supercharged-

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#28 -supercharged-
Member since 2006 • 5820 Posts
It's their own fault the 360's hardware is crap but hey at least they are finally doing something about it instead of just sitting back and watching like they were doing.