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.
Microsoft just posted the third quarter of its 2024 fiscal financial results. The software maker made $61.9 billion in revenue and a net income of $21.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 20 percent.
Xbox content + services up 62% while hardware down 31%... seems about right with the way they tout you don't need the hardware to play. People can play on their phones or smart tv or other means. I don't hardly play on my consoles directly since getting devices like the logitech g-cloud and ps portal. Which is to also say I have been playing more digital than physical because of these devices.
you should apply in MS PR team buddy, I think you will do a great job in my humble opinion :)
MS: "Xbox services and content without AB up 1%, with AB up 62%. Hardware down 31%. In total a loss of 350 mill."
darthv72: "Seems about right."
MS: "Excuse m ..."
darthv72: "I don't hardly play on my consoles directly."
MS:
What he said was facts. How he plays games is no concern of you. Don't get too mad about it.
I can tell people like you are an absolute minority..
If service is up means their fans and fanboys accepted this model and subscribed to it. The near future you will see a big decline because the service is saturated.
to you it may seem like the minority... but your bubble is shrinking because more and more are following suit. convenience is a hell of a drug and its also why physical sales only amount to 30% of overall game sales. times are changing, you either get with them or you get left behind.
But that's been ms for years. When things aren't going their way they try to change the way things are said. For instance console sales are down, they stop telling how many sold instead telling us how many hours spent in halo or headshots. So it makes sense console sales down just say people are playing on more devices then previous. What they won't say is how many xbox players jumped ship to ps5.
Hardware sales are so bad that Sony and Nintendo are blowing the sales off the water with their hardware.
If Xbox are losers, others aren’t..
Xbox already tried everything with Xbox live then subscriptions went down so much that they had to find something else. Their fans subscribed then reached saturation rather quickly.
Hardware and exclusive games is where it’s at! Keep gamers excited, announce decent software and people will support you
@shin
Well keep it simple Sony 's operating income is down 26% and Microsoft's is up 32%. No MS spin there, just facts. 😉
Cheers
MS is after diminishing consoles as a medium. They want to destroy this market because they couldnt win. MS’s vision is to dissolve console gaming.
Odd that a company that touts you dont need the hardware to play is already touting another console in the works.
They are not reliant on the HW but still want to maintain a presence (no matter how small) is a good thing. It shows commitment to the craft. It reminds me of SNK and how they made games for their own hardware (Neo Geo) while also making them for others because they knew there was a market to do so. They knew they would sell more to others but also sell to their own niche fan base.
Perfectly reasonable post down voted by insecure corporation friendly folk.... But not gamers. Real gamer want accessibility and ease of acquisition for all.... Company shills are the only ones still telling us that hardware locking people from games is good for us.
In the last two years they've started exiting the consumer market altogether. All of the newest Surface products are business models only. They can't seem to work out what they want to do with it.
Too expensive hardware when others offer the same or more for less? Good work, Green Team.
"Despite some early successes for Xbox games on rival platforms, Xbox hardware is down by a massive 31 percent this quarter."
"Without Activision Blizzard, Microsoft’s overall gaming revenue would have actually declined this quarter."
"Xbox content and services would have only been up a single percent without Activision Blizzard..."
"It looks like next quarter is going to be a similar story for gaming at Microsoft, too."
That is crazy... so A/B/K is carrying the whole Xbox gaming.
Oh and Microsoft will be fine. Windows, Office and Cloud are growing with each pc purchase.
Activision: "we gonna need a bigger rucksack/backpack please"
Microsoft: "why's that"
Activision: "to carry yo' weak ass'
Top brass have also wanted to start seeing returns on the 100 billion they have put into various Xbox related moves so seeing more multiplatform games is highly likely especially from abk
It's basically saying that PlayStation is the reason Xbox is afloat right now thinks to Ps5 versions of COD
The only growth MS will get out of the console industry is if it supports it's rivals platforms. Xbox is a pointless machine now. I can see them on a big push for live next, and they won't give up on trying to buy Steam.
As part of its plans to cut 1,900 jobs, Microsoft has reportedly shut down operations at Bethesda France, letting go roughly 15 people
They can form a company if they want, they are just as jobless as if "Microsoft had left them as 3rd party".
"MIcrosoft leaves Bethesda do what they know how to do best" ... close! Oh the irony ....
(Citation from a week old article)
I think Microsoft and other game publishers are letting people go because they think ai will replace them. Doesn’t matter how much profit they make. They were always going to be let go.
Bethesda France was made up of roughly 15 people... they couldn't of being doing much
Bethesda France mainly did publishing and marketing within the region
that's a shame for you to say that, i'm sure Elite loves hearing what you just said.
Bethesda France focused on publishing and marketing in the region. And 15 people lost their jobs as part of the closure.
I wonder if this is part of Microsoft's strategy to abandoned physical media or possibly gamepass advertising makes their roles redundant you don't need to market a game as hard when the majority of players get the game as part of a sub which already promoted upcoming games
It's France too, there's a high likelihood only 1-2 people on the team even had an Xbox.
Tbh Microsoft I think Bethesda being 3rd party same with Activision would probably more competitive than thus scenario imo
I think it would have been better for all parties really especially gamers
The recently purchased Activision French offices might take over all the licensing and marketing for Microsoft in France from now on.
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."
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.
Thats must be 30 years from now.
Consoles arent going anywhere son, stop dreaming.
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...
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
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.