220°

Xbox 360 and PS3 losses total $8 billion, ex-Sony employee paints grim future

Xbox 360 and PS3 have cost Microsoft and Sony a combined total of $8 billion, according to industry veteran Ben Cousins.

According to Cousins, Microsoft has spent some $2.996bn on Xbox 360 since it launched in 2005, while Sony has fared worse, spending $4.951 billion on PS3. Both figures are a loss, and you can see an overview of both company’s losses in Cousins’s financial table here.

Cousins, who has worked at a string of high-profile studios over the years – including Sony EA and Lionhead – has shed serious doubt on the future of the home console as we know it, citing Sony and Microsoft’s plan to sell each console at a loss as a reason for such poor fortune. It’s a poor strategy he says, as even with a combined total of 70+ million consoles sold, both companies are still losing money.

iNathan4117d ago

MS made alot of money with the 360 in the last 3 years but they lost alot in the first years on the market.

Still what really matters is that right now is making money and isnt going away anytime soon.

Next Gen will lose money at first its normal, these things will be powerfull, technology is expensive and they cant sell Consoles for 1000$. But with time, games sales, Live etc... it will make money for them.

Riderz13374117d ago

What really hurt Microsoft is the RROD. I think this time around consumers might be watching Microsoft more carefully because of the disastrous launch of the 360 which was caused by the obsession to launch ahead of the PS3.

darthv724117d ago

disastrous? generally, disasters are tough to overcome but they managed to do quite well on their 2nd outing in the console market.

Hardly what i would consider "disastrous". Problems happen but many would rather concentrate on the nature of the problem more so than the efforts put in to resolve it.

Its a matter of selective recollection. only choosing to look at bits and pieces instead of objectively looking at both the bad and good to come from it.

Riderz13374117d ago (Edited 4117d ago )

@darthv72 Yeah it was disastrous because they had to keep replacing Xbox's which is why they lost a lot of money this gen from the Xbox. Also who knows what future disasters it could have on Microsoft. Maybe people won't feel safe buying the Xbox at launch...maybe they will. Hard to determine right now.

darthv724117d ago

but i'm not the kind of person to hold a grudge if something isnt working. UNLESS there is no effort to resolve the issue.

customer service is the main thing that keeps most consumers coming back. How a situation is taken care of can actually do more for the consumer confidence than the situation itself.

My PS2 laser died a year after having the system. It cost me $150 to get it fixed and yeah i was a bit miffed but not to the point where I would chastise sony out of spite.

im a gamer first and as such I fully know the costs and risks involved with this expensive hobby. Where as many shunned MS in the event of the RROD, they made good on trying to fix it at minimal to no cost to the consumer.

Some say they HAD to but they could have charged a minimal fee of $75 if they wanted to. Hell, nintendo charged me that when the sound chip went bad on my Wii after a year. Many will hate on MS because of who they are regardless of personal experiences.

Like i said before. Problems happen but how they are handled is often times more important to the consumer.

4116d ago
morkendo234116d ago

wiil consumers REALLY pay attention this time?? or only gamers will. will people buy xbox next after seeing signs of possible RROD again we dont know.

my crystal ball say:
lets wait and see.

violents4116d ago

@ darthv72

I agree it was disatrous. A 72% failure rate cant be called anything less in the eyes of the manufacturer.

My launch Ps3 60gig lasted 6 years before it finally ylod on me. I know people that went through 3 xboxes in a week. One only lasted for like 2 hours. I would definitly consider that a massive fail.

+ Show (3) more repliesLast reply 4116d ago
dedicatedtogamers4117d ago

And yet people still say "we need better graphics! And we need more voice acting!"

The rubber band is going to snap. Most developers can't keep up with the rising cost of AAA games, and next gen will be even worse.

Plus, we don't have a strong worldwide economy. The name of the game next gen will be "profitability". Who will be able to stay in the console race? It won't come down to number of studios. It won't come down to exclusives. Heck, it won't really come down to sales, either. It will come down to how profitable each game and each console is.

Christopher4117d ago

*** It’s a poor strategy he says, as even with a combined total of 70+ million consoles sold, both companies are still losing money.***

On hardware. All companies are raking in dough on software.

You don't sell hardware to make a profit on hardware. You sell hardware to sell software.

Why do we keep getting idiotic analysis of things that don't matter on their own?

doctorstrange4117d ago

Exactly. If these consoles were such catastrophic failures as he suggest, then they wouldn't make another gen of them.

Ace Killa 084117d ago

Because the source works within the mobile market and tries to convince the reader consoles are dying while mobile market is the next way to go.

1upgamer994116d ago

Microsoft sold more after the price cut, as did Sony. Therefore once the console began to turn profit-Price was cut and the profit was no longer there. Allot of people are starting to turn away from Live, seeing as how Sony and Nintendo are not charging the premium fee. Live is great but I am not going to pay to play BOPS2 online when I do it on Wii U free. I no longer support Microsoft Xbox. PS3, Wii U, PC for me. "making money isn't going away anytime soon" Well I am not sure about that seeing as the Xbox will be launching this year, and more than likely sold at a loss. How much first party support will 360 have after this year?

+ Show (1) more replyLast reply 4116d ago
iNathan4117d ago

Thats must be 30 years from now.

Consoles arent going anywhere son, stop dreaming.

Belking4117d ago

They will go away but not for a while. The time will come when you won't need to buy a console to get content and game makers won't need them to deliver their software. I would love to have them forever but I know it won't be.

miyamoto4117d ago (Edited 4117d ago )

Ouya, Game Stick, NVidia and Valve have just announced their new gaming consoles and this guy spew FUD doom and gloom.

So he is saying these guys are stupid and did not do their R&D?

I bet this guy is spewing these crap for his own vested interests.

awaiting a Sony, Nintendo and M$ response...

ElectricKaibutsu4116d ago

I actually think that was his point. Those "consoles" you mentioned are really just computers that you hook up to your TV. The Ouya and Steam Box won't have a proprietary operating system like the Big 3 do. Valve said you can even install Windows on their's. As it becomes more common to hook PCs up to TVs I could see consoles becoming more niche. I'm not happy about that, btw, but it makes sense.

miyamoto4117d ago (Edited 4117d ago )

Oh and its from Kcraptaku!

I should have known!
Nothing from that site is ever positive news worth reading.

darkride66 you should have known better not to bring that garbage here on N4G

Seriously

Anon19744117d ago

It was based off a guest column from Kotaku. Generally I have zero use for Kotaku or their articles, but this wasn't from one of their in-house hacks. Ben Cousins is a developer with some impressive credentials over the years from his time with Sony, Lionhead, EA, Dice and I feel his thoughts on the issue are valid and wildly shared.

We all know that MS/Sony sells consoles at a loss, but if software doesn't make up the difference as is suggested, why would they continue to do this? MS themselves stated way back that the next gen could look nothing like this gen due to costs, stating a low-cost, digital hub may be a better alternative.

Whether we agree or not, these are the discussions that are being had behind closed doors regarding next gen. When return on investment isn't there, you have to start looking at different strategies. This gen they weren't exactly racking it in except for Nintendo, and even then their strategy with the Wii imploded quickly and may not work again.

We've seen studies indicating that the young are turning away from traditional consoles in favor of mobile apps. There's evidence for his argument all around even if you don't agree with his ultimate conclusions. If you think it's garbage, why not pick a point he makes and explain why you don't agree?

Hicken4117d ago

He HAD credentials, but now he's firmly entrenched within the mobile market, and his articles more than show what he thinks.

He- apparently- has little faith in the console market, so it's no surprise. Check out the other articles he's had published at Kotaku... if you want to bother suffering through that.

His opinion is hardly unbiased, so that makes it a lot harder to take his words at face value.

EddieNX 4117d ago

Ouch , that's pathetic. Do they even know what they're doing ? The gamecube was arguably more successfull than the os3 and 360 BECAUSE Nintendo never LOST money on it , they MADE a PROFIT on every unit and game sold.

Sony lives in dreamland trying to show off like the big man with ''UBER TECH'' when they can't even afford to deal with ''UBER TECH'' they're just lying to themselves.

It's like a car salesman buying cars for 4K and selling them for 3K . You can't afford to sell those cars like that LOL.

This is Why the PS4 and maybe 720 is going to be a dissapointment to you drones because the MOST they can do is sell it at breaking even.

Sony need to make some Money or they will be the next Sega.

I know , the truth hurts.

Nintendo is currently by far the most successfull competitor in the Video Games sector.

4117d ago Replies(2)
Show all comments (36)
80°

Nintendo's Massacre Of The 3DS And Wii U Is Finally Complete, Regrettably

Hanzala from eXputer: "The cruel hammer of Nintendo has fallen. Farewell, 3DS and Wii U, you surely brightened my life and many others; you won't be forgotten."

280°

Xbox's Preservation Step Sets A Much-Needed Example, Especially For Nintendo

Hanzla from eXputer inquires: "If Xbox can care about preserving its games and legacy, what exactly is wrong with Nintendo, trying to kill game preservation single-handedly?"

purple1016d ago

Ahh yes the good old game preservation of saving all your games to a removable hhd on the Xbox 360, taking it round your mates house, setting up multiple tvs to
Be met with “save data corrupted, please re download”

Or how about removing 360 games
From the store
, download them now or else, and, better hope to god that save data doesn’t corrupt, or it’s lost for ever

Nice one ☝️

Zeref5d ago

It's better than what Nintendo and Playstation is doing. It might not be perfect but at least they are TRYING. Unlike the others.

DarXyde5d ago

Trying? Take off the blinders for a moment, mate.

1. A failure to preserve games is just that: a failure to preserve games. Don't try to sugarcoat it: NO ONE is doing it properly. Better than awful is nothing to write home about.

2. At the time of this comment, isn't it the case that you need an internet connection to play Xbox games even if you buy physical discs that are hardly in circulation anymore? I don't have a Series X and I can't verify, but I think that is correct. I'm fairly certain you can at least play PS5 games at version 1.0 (not much of a win really when many games require day one patches). I think Microsoft's all digital, licensing approach is by far more aggressive than anyone else's. They really try to push you to game pass where you lose your entire library by umm.... Skipping a month of payments.

I don't think anyone is doing it right whatsoever. Don't get me started on Nintendo, who goes after anyone looking to preserve their games better than they ever would with extreme litigation.

Don't be a simp for any of these companies. Get it together.

PhillyDonJawn5d ago (Edited 5d ago )

@DarX never speak on Xbox again. You lost all credibility with your internet connection comment. Smh you have 0 clue and misinformed yet speaking on something you don't no squat about.

Einhander19725d ago

What has Sony done exactly? You guys keep deflecting to Sony but I am not actually seeing any results, and ai am certain nothing that you can come up with even comes close to what Microsoft has done and what they have tried and failed to do, like tie all your disks to your account on xbone.

Microsoft removed their whole indie section when they moved to the xbone because they were going to only allow games on the service that came from a publisher, id@xbox started after xbone launched and it only exists because Sony embraced indie and Microsoft was forced to cancel their plans and reverse course.

And every single game that was part of games for windows live including disk games (I have gta 4 on disk that won't work) so hundreds of games that use that DRM no longer work unless the company themselves patched it out which of course very few did.

MrBaskerville5d ago

Not trying. Tried. they killed of the backcomp program years ago. They set something up again, but sounds like it's more of an attempt to save the current library on whatever they are planning next. With luck they save everything and more, but let's see. I could see them killing off parts of the OG xbox and 360 libraries. Can't imagine that they would allow us to play Forza 5-7 in the future.

With that said, I do like what they've done and really wish they could have done more.

shinoff21835d ago

Zeref

So killing off physical media is trying what exactly. Ms don't really give a fk if you think they do your kidding yourself.

Profchaos5d ago

They are not trying this team is established for forward compatability the team is. It interested in preserving Xbox or 360 games.

+ Show (3) more repliesLast reply 5d ago
isarai6d ago

Is that why Hellblade 2 is digital only?

Zeref5d ago

Just because it's digital only doesn't mean you can't preserve it. Just put it on an external and you have the exact same functionality of what a disc does.

MrNinosan5d ago

Guess you're trolling, but if you actually think that's how it works, I'd recommend buying some braincells.

mkis0074d ago (Edited 4d ago )

Volitile vs nonvolitile data. A disc will not corrupt either. A drive can be corrupted.

Einhander19726d ago

This is just a scammy PR move to distract from the fact they are going digital only and trying to push streaming and subscriptions only.

No gaming company has pushed harder to remove ownership than Microsoft.

Without discs there is no preservation, preservation can't be done by the rights holders it can only be done by the consumers, anything else is a lie.

6d ago Replies(3)
Einhander19725d ago

Anyone remember xblig which Microsoft removed their whole 360 indie section removing hundreds of games from people?

5d ago
5d ago
Zeref5d ago

Do you know you can put your games on an external and preserve them that way? There are no benefits to discs. ZERO. Idk why some of you are still obsessed with them.

DarXyde5d ago

Because games like Persona 5 exist. It's STILL V1.00. On Playstation, that's a win because 1.00 is installed on the disc—no need to download anything.

If a game does not require any updates, it's all on the disc.

Extremely low bar in the modern era, of course. It's not much of a win by any stretch.

But for now, physical media does have a purpose, at least on Playstation.

Einhander19725d ago

That is factually not how game licensing works, try plugging your hard drive into someone else xbox, It's not going to work, and it won't work if the licensing servers ever go down.

Einhander19725d ago

Anyone remember games for windows live.

I have around a dozen games, some on Steam itself that will not work because Microsoft shut off the licensing servers.

BehindTheRows5d ago (Edited 5d ago )

I do. I STILL have games (Gears of War being the big one) I cannot access because Games for Windows LIVE is total garbage and no one has held Microsoft accountable.

Zeref5d ago (Edited 5d ago )

You don't have an Xbox apparently. Because you can 100 percent plug in your external and play games from it on any Xbox console lol. You just have to be logged in to prove ownership.

Chevalier5d ago

"You don't have an Xbox apparently. Because you can 100 percent plug in your external and play games from it on any Xbox console lol. You just have to be logged in to prove ownership."

Damn how many times do people got to explain your idiocy to you? You can take a copy of Persona 5 like someone used as an example and play that game on ANY console WITHOUT logging in which means I can lend the game to a friend without internet and they can play my game. Can you lend your hard drive to anyone without logging in for them to play? NOPE. That is a huge difference and if you think otherwise then sorry you're an idiot.

Tacoboto5d ago

"No gaming company has pushed harder to remove ownership than Microsoft."

Ubisoft is literally erasing games people bought from their libraries... My PS1-3 discs are useless on modern hardware. Nintendo's re-published and resold almost their entire Wii U library, and the eShop is completely dead with no BC mechanism in the Switch software. Microsoft publishes everything they make today day one on Steam and Xbox/Windows. Sony only brings to PC the titles they think you might want some years later and Nintendo won't even design a functional long-lasting joystick.

You're absolutely trolling and not serious if you think Microsoft today is the worst offender.

shinoff21835d ago

Yay steam

Not everyone fks with computers though. The disc is still the best way as a console player. Period.

Tacoboto5d ago

How do Sony and Nintendo feel about these discs from 2001-2013?

Don't be stupid, you know Xbox is the best at this today.

+ Show (3) more repliesLast reply 5d ago
Hofstaderman5d ago

Nobody wants this. Sales or the lack of it in the case of XBOX is very telling. I wonder how the adorably all digital series X will fare. Adorably dismal perhaps?

crazyCoconuts5d ago

Only time will tell, but for from someone like me suspecting that Xbox is trying to gracefully exit the console market, that "forward compatibility" team is trying to get Xbox games playing on Windows PCs. I mean, it's nice that they're not planning on exiting with a "enjoy your games while the hardware still works" message, so that's nice. They still have a brand to protect via Microsoft so probably feel obligated to have a better exit strategy.

Xeofate5d ago (Edited 5d ago )

That is not their plan, their plan is to transfer users accounts to the cloud.

Phil Spencer himself said as much a few months back, plans could have changed but I think people are reading way too much into one statement where Phil said he would allow Epic on xbox because he wants to be able to sell xbox games directly on other platforms. Aka, instead of selling Sea of Thives through PSN he wants to have an xbox store to sell his games on PlayStation without giving PlayStation any money.

Again, it's extremely unlikely that Phil plans to put PC on xbox and licensing would prevent them from just giving out other publishers games purchased on xbox copies of thier games on PC, Microsoft does not own their games.

crazyCoconuts4d ago

The thing that doesn't align with the cloud strategy is the giving up on exclusives. You'd still need strong exclusives for cloud streaming - it's still a "platform" , just with a lower upfront hardware investment. I feel like they've learned what PS learned with PSNow long ago. We're not ready to stream games and it's only gonna lose them money to try at this point

FinalFantasyFanatic4d ago

I would love that, I'd buy up some of the Xbox games if they could run on PC, like the Rare Replay, Lost Odyssey and Dead or Alive Ultimate, probably a pipe dream though.

Show all comments (43)
90°

Nintendo's War Against Player-Made Content Will Hurt The Company In The End

Danish from eXputer: "Nintendo has historically gone against player-made content and emulation of its games. This has done much to harm the company's image."

XiNatsuDragnel12d ago

I agree nintendo hire some these folks to help in your games it'll help imo.

banger8811d ago

They need to stop announcing these mods and fan remakes until they're finished. Finish it, upload it, and then if Nintendo dmca's it tough shit. Once it's online, people can share it around, even if the original download gets taken down.

Jingsing11d ago

True, but most modders need constant admiration during the process to motivate them.

PRIMORDUS11d ago

Yup, once it's a torrent nothing can be done Nintendo is helpless at that point. But it would be wise if they just had a site on the dark web, it's also easy to use with Tor and no one will bother you.

mastershredder10d ago

This is all coming from the mouth of short-sighted fandom and grifting madness.
No.... it wont. There is a clear defined reason why they don't. This is nothing new. Make your own shi7 from your own original ideas especially if you are trying to capitalize of it it. Duh.

Yeah, hire people that have zero respect or understanding for an established process. Wow. Yep. Totally makes sense.

shinoff218310d ago

Those guys that made that sonic game got a gig from sega or something along those lines and that game was dope as hell. One of the best sonics as of late.