Why Microsoft is using the PowerPC chip for the Xbox2

[MorganX]

This is an interesting article at theInquirer with one man's thoughts on why MS is using the PPC for XBox 2.

I actually remember Exponential Technology. It was an interesting time. Much less venom in those days

 

[kuyu]

Makes sense. The G5 is wicked fast, and these new ATI chips will make the graphics somewhat backwards compatible. My question is, will microsoft engineer an EFFECTIVE x86 emulator for the G5, so as to ensure backwards compatibility?

If they do create a good emulator that doesn't drain +50% of system performance, I'd say the tech will find its way into VPC... I hope.

Also, this thing's going to cost $800. It's fast, but will be too expensive for average Joe six-pack to buy one. I guess they're counting on hardcore xbox fanboy's to buy units.

 

[Kid Red]

All 7 of them?

 

[G4scott]

Also, Microsoft is willing to sell these things at a loss, just to capture more of the console market. They haven't made a penny with the xBox yet, and with this monster of an xBox2, I don't think they'll be making much money anytime soon...

 

[MorganX]

Originally posted by G4scott
Also, Microsoft is willing to sell these things at a loss, just to capture more of the console market. They haven't made a penny with the xBox yet, and with this monster of an xBox2, I don't think they'll be making much money anytime soon...

Their CFO says they will never make money on the current Xbox, but they project they will on XBox2.

With 90nm and 65nm, more processign power is actually costing less. How much less is probably dictated by volume. PPC has always been cheaper to produce. I would imagine 2 G5ish CPUs at 65nm will cost significantly less than the current 733Mhz Celeron currently used in the Xbox.

 

[Dippo]

Originally posted by MorganX
Their CFO says they will never make money on the current Xbox, but they project they will on XBox2.

The only thing that makes money for Microsoft is Windows and Office (PERIOD)

 

[MorganX]

Originally posted by Dippo
The only thing that makes money for Microsoft is Windows and Office (PERIOD)

Making money and being profitable are two different things, to a business.

And don't forget about the server group. They had a loss this year, slightly less than the profit last year. Periods are only good for bedtime stories, not business.

All consoles were sold at a loss as their markets matured. Xbox is following the same model as everyone else until software sales allow them to break even. It's a long term investment and business strategy.

 

[jxyama]

Originally posted by MorganX
Their CFO says they will never make money on the current Xbox, but they project they will on XBox2.

well, CFO cannot come out and say that their new project will not make money.

irc, PS2 broke even from R&D costs after 100 million consoles or so. (i could be wrong, but all i know is that sony has passed the mark, whatever the exact number.) so PS2 is in the black now on its hardware alone. software has been making money for sony from the beginning.

xbox is doing awful in japan, the second biggest console market. i hear they haven't even shipped a million units... not really surprising, knowing japanese taste for design and compactness, xbox looks like a (typical, at least in japanese minds) ugly behemoth from america. however, i think it definitely has found a niche among hard core gamers in the u.s. as a cheaper alternative to PC boxes.