Microsoft is still looking for their first penny from videogames

Microsoft, meanwhile, is looking to move toward profitability in gaming with the console it introduced last November, the Xbox 360. The software giant has invested billions on its game machines but has yet to make a penny.

http://www.latimes.com/entertainment/news/newmedia/la-fi-games16nov16,1,7806009.story?page=2&cset=true&ctrack=1

What the....patience is an admiral virtue...and a logical move in business.BranKetra

This says otherwise http://www.gamespot.com/news/6161925.htmlryanzoso

The thing is, MS can afford it! The amount of profit they are earning in a quarter off Windows alone is enough to beat the crap out of both Sony and Nintendo combined! MS can stay in this game as long as it's other sectors keep on rolling in the cash. In the meant time, Sony and Nintendo can't do this because Sony is in dire finacial straits (Battery recalls, realiment, PS3 is simply too costly etc) and Nintendo, even though they are ver profitable, have only one division, which is gaming. This is why Wii is so cheap to make and will earn a profit at the very begining. StryderK

[QUOTE="ryanzoso"]This says otherwise http://www.gamespot.com/news/6161925.htmlstephenatl

man why can't cows just accept ownage 

[QUOTE="ryanzoso"]This says otherwise  http://www.gamespot.com/news/6161925.html[/QUOTE]

"Though it had no breakdown of the Wii, this week's iSuppli study did comment on the cost of another next-gen console. Thanks to streamlined processes and ample component supplies, iSuppli estimates that Microsoft now makes $75.70 per Xbox 360 console."

[QUOTE="ryanzoso"]This says otherwise http://www.gamespot.com/news/6161925.htmlstephenatl

That link says that Microsoft now makes 75 bucks per console sold... that doesn't mean Microsoft is out of the red yet though. Microsoft is expecting to make profits by 2008. Not too bad of a goal.Kinitari

No they still have R&D and other expendures.

That link says that Microsoft now makes 75 bucks per console sold... that doesn't mean Microsoft is out of the red yet though. Microsoft is expecting to make profits by 2008. Not too bad of a goal.Kinitari

You should thank the governmental agencies. If there wasn't a regulatory body looking out for the public's interest, the videogame industry would have crashed by now.

Microsoft would have bought out all the major players within 2-3 years and a monopoly would have ensued.

Can you imagine Microsoft with 80% market share in the videogame business?.......Shudders, i don't wanna even think about it.

[QUOTE="stephenatl"][QUOTE="ryanzoso"]This says otherwise http://www.gamespot.com/news/6161925.htmlklactose

The thing is, MS can afford it! The amount of profit they are earning in a quarter off Windows alone is enough to beat the crap out of both Sony and Nintendo combined! MS can stay in this game as long as it's other sectors keep on rolling in the cash. In the meant time, Sony and Nintendo can't do this because Sony is in dire finacial straits (Battery recalls, realiment, PS3 is simply too costly etc) and Nintendo, even though they are ver profitable, have only one division, which is gaming. This is why Wii is so cheap to make and will earn a profit at the very begining. StryderK

MS earns most of their money from stock market, not windows

if it is like you said so, why is sony getting all the exclusive ps games?

Sony Entertainment's PSOne and PS2 have set industry records for console sales and games, making plenty of money in the process. Nintendo is still enjoying life with the success of their handheld lines, and the money keeps flowing in.

Microsoft? After five years, two consoles and hundreds of released titles (1st, 2nd and 3rd party), their gaming division has yet to see its first penny of profit. From today's Los Angeles Times:

Microsoft, meanwhile, is looking to move toward profitability in gaming with the console it introduced last November, the Xbox 360. The software giant has invested billions on its game machines but has yet to make a penny.

http://www.latimes.com/entertainment/news/newmedia/la-fi-games16nov16,1,7806009.story?page=2&cset=true&ctrack=1
larshaun

OH NO!!! MICROSOFT WILL GO BANKRUPT!!!:roll:

[QUOTE="klactose"][QUOTE="stephenatl"][QUOTE="ryanzoso"]This says otherwise http://www.gamespot.com/news/6161925.htmlmade-man

:rol::roll:

It says MS is making $75 profit from every 360 sold. "Microsoft now makes $75.70 per Xbox 360 console"

IT'S STILL MAKING MONEY, we did NOT say that MS recouped all the money it invested. Are you blind, oh thats right - you are a blind, ignorant cow.

[QUOTE="stephenatl"][QUOTE="ryanzoso"]This says otherwise http://www.gamespot.com/news/6161925.htmlklactose

[QUOTE="StryderK"]The thing is, MS can afford it! The amount of profit they are earning in a quarter off Windows alone is enough to beat the crap out of both Sony and Nintendo combined! MS can stay in this game as long as it's other sectors keep on rolling in the cash. In the meant time, Sony and Nintendo can't do this because Sony is in dire finacial straits (Battery recalls, realiment, PS3 is simply too costly etc) and Nintendo, even though they are ver profitable, have only one division, which is gaming. This is why Wii is so cheap to make and will earn a profit at the very begining. Magna_Man109

meh, MS will never run out of moneysecretsaiyan007

BUT....they will run out of patience trying to make money with Xbox and selling it to casuals....eventually, they will give up if this thing doesn't make a profit in a decade...which is coming up.

As long as I get a decently cheap console with great games, I'm happy. Just keep buying out companies, Bill!project343

You do know that the more MS puts into buying companies, the more the gaming industry hurts? Granted, Rare finally made a good game (Viva Pinata) but let's say if they took Capcom? Then MS would be putting Capcom's talent into their standards which could lower them. I just don't see good things from this sort of move. The only advantage is, stealing exclusives. Which I say makes a console a big seller.

[QUOTE="secretsaiyan007"]meh, MS will never run out of moneyXTy

BUT....they will run out of patience trying to make money with Xbox and selling it to casuals....eventually, they will give up if this thing doesn't make a profit in a decade...which is coming up.

So it appears Microsoft has targeted 2008 as the year that it's gaming division will make it's very first penny of profit:

"Microsoft's Xbox division has lost money every year since its inception, but Bach previously said he expects it to turn a profit in the company's 2008 fiscal year."

http://www.gamespot.com/news/6162325.html

We all wish them well!
larshaun

[QUOTE="XTy"]

[QUOTE="secretsaiyan007"]meh, MS will never run out of moneyDanm_999

BUT....they will run out of patience trying to make money with Xbox and selling it to casuals....eventually, they will give up if this thing doesn't make a profit in a decade...which is coming up.

[QUOTE="Danm_999"][QUOTE="XTy"]

[QUOTE="secretsaiyan007"]meh, MS will never run out of moneyHuusAsking

BUT....they will run out of patience trying to make money with Xbox and selling it to casuals....eventually, they will give up if this thing doesn't make a profit in a decade...which is coming up.

[QUOTE="stephenatl"][QUOTE="ryanzoso"]This says otherwise http://www.gamespot.com/news/6161925.htmlklactose

The 360 is already making money? That is crazy. The XBOX never turned a profit. Of course the most money will be made via the games, accessories, market place, XBL, etc. Seems like MS has yet another cash cow in the works, besides their software. eastside49er

[QUOTE="eastside49er"]The 360 is already making money? That is crazy. The XBOX never turned a profit. Of course the most money will be made via the games, accessories, market place, XBL, etc. Seems like MS has yet another cash cow in the works, besides their software. HuusAsking

Yes I know all of the back stories. I still find it amazing that under a years time MS is already making money from the hardware. They never made anything back on the XBOX. It is very impressive to see MS learn from their past mistakes in a business sense. Already in the black for the hardware and will more then likely be in the green by 2008. Bravo MS.

I guess this means the 360 will have a much longer life span than the original XBOX? Seems like we probably won't see a new console from MS until 2010, possibly 2011.

It's been said that every premium makes MS a profit...

idk where this guy came up with his "facts"..

besides.. the ps2 didn't come close to creating a profit at its 1 year mark either....

but  somehow cows seem to forget this....

really tho; ps3 fans should be the LAST gamers to talk about profitability....  the ps3 is a money loser... hand over fist...;)