Because they want to beat the other console makers in sales. M$ isn't striclty about money anymore - its more power over the market in general. They already have more money than they could spend.jiv3turkey748 said:if theyre losing money then why continue to make the xbox...
stoid said:Is that just the console? I thought that MS had made back most, if not all of their losses on game royalties and licensing etc. Or does that $4 billion include money made on games?
True, but could games sales make up the several billion lost? Also they apparently don't account for the R&D cost to develop the console in the first place, which was probably none too cheap.AlBDamned said:It's doubtful that this figure was off-set against game sales and also bear in mind the phrase lost up to $4 Billion.
Maybe, maybe not.Lacero said:Microsoft screwed up royally when they didn't think further ahead to make sure their library of xbox 1 games could work natively in the xbox 360. Now with only limited support for some titles, they've basically started over again. Idiots.
Exactly. Once you have control of the market, you can effectively do what you want with it. You're the ones making the money, because you're well known (of course, this didn't work this gen - Nintendo has made more than the other 2 lost combined each quarter for the past 2 years)Lord Blackadder said:Because they want to beat the other console makers in sales. M$ isn't striclty about money anymore - its more power over the market in general. They already have more money than they could spend.
Nintendo has done that with every new generation, and yet they're still making money. I think backwards compatibility for consoles is highly overrated.Lacero said:Microsoft screwed up royally when they didn't think further ahead to make sure their library of xbox 1 games could work natively in the xbox 360. Now with only limited support for some titles, they've basically started over again. Idiots.
Years of Xbox losses were predicted by an analyst I read a few years back. Turned out to be right. But I think these losses include game console software sales. As the Forbes article says, the company is divided into divisions, of which the Xbox is one. It doesn't appear that game console software is its own division, and these sales don't fit into their enterprise, operating system or desktop software divisions. So I think they're losing money on the whole shebang.Sun Baked said:The Xbox is expected to be a loss-leader, the video game and game distribution should be a profit center.
Umm, well, I think that reasoning goes only so far. I think it's fascinating to see how poorly Microsoft does in a market when they're faced with real competition.edesignuk said:As others have said, the Xbox was all about establishing Microsoft in the console market, and at whatever cost - lucky for dear old MS, no matter how great the loss, it's still not actually that much of an impact to their over all finances.
I'll see how they're doing another generation or two of consoles down the line before I judge them on this one, this is about long term gain remember.
Spend money to make money....and all that gibberish.