Microsoft getting screwed by the XBOX...

topicolo

macrumors 68000
Original poster
Jun 4, 2002
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Ok, this is somewhat OT, but I just thought of something: Since Microsoft is losing like $100 per xbox that they sell because they think they'll make the money back from selling games, wouldn't it be cool to just go buy xboxes to use them as just a set-top computer w a dvd player? Apparently, some guy at MIT just cracked the xbox's encryption system and now it'll be possible to install linux and stuff on it when they eventually get released, giving the owner the equivalent of a Celeron 700Mhz with a Nvidia GF3 for $200. I've also heard of someone working on a divx player for the xbox--that would definitely be the killer app for me.
 

jefhatfield

Retired
Jul 9, 2000
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printers are almost given away and the money is made on the ink and paper so the theory of making money on games for xbox is not that crazy

a 700 mhz computer for $200? - not bad, but toss in a mouse, keyboard, and bundled software, and i would rather spring for a tiny bit more and get a new sub-1 gigahertz pc for $299 at fry's

...but that is interesting that someone from a proper (sueable) college would do that

as for linux, i liked it more than windows for sure but the support is coming along too slowly...but in time, linux will be more and more common as is the case in low cost networks

just my 2 cents
 
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topicolo

macrumors 68000
Original poster
Jun 4, 2002
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Originally posted by jefhatfield

a 700 mhz computer for $200? - not bad, but toss in a mouse, keyboard, and bundled software, and i would rather spring for a tiny bit more and get a new sub-1 gigahertz pc for $299 at fry's

...but that is interesting that someone from a proper (sueable) college would do that


just my 2 cents
Still, why go for a conventional sh*t computer when you can get one that has tv-out, and crappy car-sized controllers? ;)
Apparently, that guy at MIT contacted microsoft before releasing his papers but it said that he made some circuit board out of $60 worth of equipment and sniffed the data being transmitted on the mobo to get enough stuff to do a decryption routine going. Interesting stuff; hell, anything that hurts microsoft is interesting stuff :-D -t
 
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LethalWolfe

macrumors G3
Jan 11, 2002
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But what are you gonna do w/a set top computer? Yer standard TV is so low res that reading text and basic compter GUI navigation is painful (compared to using a monitor). Hacking the X-box is more a "look what I did, Ma!" deal than actuallying being of any use to anyone. If I find the link I'll post it, but Sony has (or will soon) started selling a "kit" for the PS2 that includes a mouse, keyboard, HDD, NIC, and a PS2 version of Linux.

And every console maker sells the hardware at a loss and hopes to make it up thru software sales. That's one reason why getting good/big developers to support yer system is such a big deal.


Lethal
 
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mac15

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Dec 29, 2001
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if you could run linux on i that would be sweet
but if it could on run winblows then nobody would try it
 
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topicolo

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I just think that being able to run divx movies on something like that would be sooo kick-ass. Besides, even tho it's a crappy pc-based system, it can still play mp3s and dvds and stuff. When they fully figure out how to install win2k or winxp on that thing, i'll get it just as a home entertainment machine. I'd also feel good in knowing that MS is losing money on my purchase. heheh
 
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Mr. Anderson

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Nov 1, 2001
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Originally posted by topicolo
I'd also feel good in knowing that MS is losing money on my purchase. heheh
Its such a small drop in the bucket for them. Take what you can, but I'll pass on the XBox myself. Not into the divx movies, and already have a DVD player.
 
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Beigean

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May 7, 2002
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console losses

humor me for a minute and ignore the fact that microsoft had $36billion dollars in cash.

the xbox costs microsoft around $400 to manufacture (at least it did back in november). when the system cost $300 they were "only" losing $100 per system. i'm sure manufacturing costs have gone down since then but so did the console's price:D .

In comparison, during november sony was selling the ps2 at a $75 dollar loss and nintendo selling the gamecube for a $10 loss.

Worldwide sony has sold 30million ps2s, nintendo has sold 4.5 million gamecubes, and microsoft has sold 2.5-3million xboxes. Sony has lost the most money selling systems, but they've also sold the most games, making up for it just like jefhatfield said about printers. Microsoft has sold the least hardware and software. Analysts have said Microsoft won't see a profit on Xbox until 2005. Sony has of course already been seeing profit and Nintendo is historically one of the most profitable videogame businesses.

I don't know how long Microsoft will stay in the game console business. Famitsu gave console sales numbers for a certain period a few months ago in japan: ps2 1.3 million units, gamecube 500,000 units, xbox 10,000 units. majority of the time Japan makes or breaks a system.

in the end, Microsoft loses the most for each system they sell.

and that makes my day.
 
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Rower_CPU

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Oct 5, 2001
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San Diego, CA
It will be interesting to see how MS reacts to these numbers...

Will they do the typical MS thing and just throw $ at it until they win? Or will they bow out gracefully and admit defeat/failure?

I know nothing would be funnier than Bill Gates holding a press conference to announce the discontinuation of the Xbox...who knows it might set a trend! ;)
 
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Inhale420

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May 4, 2002
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umm, the lose money on console, make money on games strategy has been around since the beginning. sony and nintendo are using a similar business model.
 
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Rower_CPU

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Oct 5, 2001
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San Diego, CA
Originally posted by Inhale420
umm, the lose money on console, make money on games strategy has been around since the beginning. sony and nintendo are using a similar business model.
That was established quite some time ago.

Put down the bong, use some eyedrops and read the whole thread before you post.
 
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topicolo

macrumors 68000
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I doubt MS will every bow out of an industry. Hell, I can't remember the last time they did. MSN was a failure, but they made it an internet portal, pocket pcs sucked ass but they kept throwing money at it and it's starting to take down palm; "pen computing" back in the early 486-pentium days didn't work, but they're doing it with tablet-pcs; etc.

Besides, the xbox isn't MS's ultimate goal, their ultimate goal is to get a windoze powered set-top box in every home and stream movies and entertainment to it using some wierd .net/passport implementation, sucking the dollars out of our wallets while sending our personally identifiable info back to their lair. MS's secret Homestation project sorta reinforces that idea. Oh well, as long as we're hurtin' MS's 35billion dollars in cash, i'm happy
 
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jefhatfield

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Jul 9, 2000
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Originally posted by topicolo
I doubt MS will every bow out of an industry. Hell, I can't remember the last time they did. MSN was a failure, but they made it an internet portal, pocket pcs sucked ass but they kept throwing money at it and it's starting to take down palm; "pen computing" back in the early 486-pentium days didn't work, but they're doing it with tablet-pcs; etc.

Besides, the xbox isn't MS's ultimate goal, their ultimate goal is to get a windoze powered set-top box in every home and stream movies and entertainment to it using some wierd .net/passport implementation, sucking the dollars out of our wallets while sending our personally identifiable info back to their lair. MS's secret Homestation project sorta reinforces that idea. Oh well, as long as we're hurtin' MS's 35billion dollars in cash, i'm happy
god, i remeber when ms cash was 9 bil...but be careful how that definition of cash is used...it's not always liquid income...but that is nitpicking though ;-)

i hope xbox does really well...i have been thinking about getting a game unit and they all rock over any computer i have ever used...but they were regular off the shelf machines with other stuff on it like works/word/office/email/internet etc

when i was a student at the ms school, there was this one guy who was building a gaming machine only with only the internet and email on the hard drive besides just the games w/ nvidia high end card and best athlon at the time, etc

when i do too many games, it screws up my other files of slows down my stupid pc so a real set aside game box is the best idea...plus i want to sit on couch

i like the idea of gamecube...that does have a powerpc processor in it....right?
 
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topicolo

macrumors 68000
Original poster
Jun 4, 2002
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Ottawa, ON
Originally posted by jefhatfield


i like the idea of gamecube...that does have a powerpc processor in it....right?
It think it is some variant of ibm's power architecture running at 400Mhz or so. Still, that doesn't really have a full dvd drive and it's too hobbled down with kiddie games for my taste
 
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jefhatfield

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Jul 9, 2000
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Originally posted by topicolo


It think it is some variant of ibm's power architecture running at 400Mhz or so. Still, that doesn't really have a full dvd drive and it's too hobbled down with kiddie games for my taste
heck...i am almost 40 so all the games i have seen seem so juvenille...but mindless fun is what the games are for

i don't see it as anything that will help me...just like beer and potato chips:p
 
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