Xbox One missteps may end up costing Microsoft $1 billion

$1 billion

That's how much Microsoft may lose in future sales of its Xbox One console thanks to missteps over pricing of the machine and curbs it tried to place on trading video games, according to Michael Pachter, an analyst at Wedbush Securities.

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Robochobo1168d ago

"According to Michael Patcher."

So they really made $1 Billion?

UltimateMaster1168d ago (Edited 1168d ago )

I wonder if he'll say the xbox is doomed after he kept saying the Wii u was doomed and yet it beat the Xbox One almost 2:1 last month.

"Sony's PlayStation 4, which has outsold the Xbox One by at least 2 million units."
Just 2 Million? You mean, more than double.

kneon1168d ago

One month doesn't make for a trend. It will be a few months before we can see if there is a lasting and substantial improvement in Wii U sales.

thebigman1168d ago

It's easy to get confused by shipped vs. sold through numbers. Sony is closer to 10m sold where MS is still struggling to hit 5m

hello121168d ago

Bigman@ ten million lol Mostly likely 8 million and 5 million for Microsoft.

Necro_5591168d ago

The Wii U has been out of almost 2 years and the X1 has been out for almost a year. ANd the X1 has already caught up in sales at double the price. The Wii U is getting owned.

4Sh0w1168d ago (Edited 1168d ago )

Yep its Pachter, and without 1 ounce of creditable info to back it up, so micro might as well start laughing all the way to the bank with yet another billion dollars stuffed in their huge trunk.

March 13, 2014
"Revenues for Microsoft's Devices and Consumer Hardware division for the quarter reached $1.97 billion -- a 41 percent year-on-year leap from the $1.4 billion it did in 2013."

April 24, 2014 at 1:07 PM
"For its fiscal third quarter, which ended March 31, Microsoft beat analysts’ expectations. The company posted earnings per share of 68 cents on revenue of $20.40 billion. It reported $5.66 billion in profit."

mediate-this1168d ago

Ps4 sold alot but how much profit has sony made? They aremt making a killing if the system costs more then they are selling.

JokesOnYou1168d ago (Edited 1168d ago )

Not much mediate-this:

"Not even PS4 success could stop Sony losing over $1 billion in the last year"

4Sh0w sony fans should worry more about this but they don't want to talk about sonys financials, its taboo on n4g

So what 'old Patch meant was sony loses a bill, while micro figures out what to do with another bill. lol

Flames761168d ago

The Xbox One has already passed the Wii U in sale sin america and will pass it worldwide by september 31 of this year.So i wouldnt get to pumped over may sales lol.When you have the X1 dropping to $399 in a couple of days.

tbone5671168d ago

It's a good thing MS makes 15 billion in pure profit each quarter.

sinspirit1168d ago

@ Everyone talking about Microsoft's revenue.. The XBox division is not profiting, at least it hasn't profited in years. So, stop posting Microsoft's company revenue and look at what the XBox division is doing.

Realplaya1168d ago

@ Necro_559 The Wii U is about to widen the gap on the XBon. The PS4 caught and passed it the Xbone has nothing going they dropped there draws oops price and still don't have games and recently 76% of 360 owners said there not even buying the thing at the cheaper price.

gaffyh1168d ago

@JOY - Yeah, Sony. Not PlayStation, which means the division is less likely to get culled.

@tbone - And that would have been $16 billion without Xbox, meaning the division is MORE likely to be culled.

Why don't fanboys understand these simple things...

360ICE1168d ago

Well, Wii U did beat Xbox One by 2:1 last month, but it was still outperformed by PS4, and still hasn't performed well over time.

avengers19781168d ago

@jokesonyou. How did you get so many bubbles?

tokugawa1168d ago

that is why xbox is no longer part of the devices divison and is now part of operating systems.

operating systems will easily eat the loses that the xb1 will accrue this gen.

missteps... more like they completely fell on their arses

BG115791168d ago

Patcher also told that MS was going to win.
That Sony was going to fail.
The only truth that came out from his mouth were the obvious things.
People are giving to much importance on what Patcher says. He's like the human vgchartz. His words shouldn't count for anything.

MysticStrummer1168d ago

XB fans don't seem to understand the difference between the overall company and a division within it. I don't think MS is ready to drop XB, or even close to it, but that's far more likely to happen than Sony dropping PS.

+ Show (14) more repliesLast reply 1168d ago
XiSasukeUchiha1168d ago

They F up one billion to be exact good day sir.

miyamoto1168d ago (Edited 1168d ago )

Which leads me back to my other comment

"So how does having a Kinectless Xbox One "BETTER"?

How is a fragmented Xbox One installed base considered "BETTER"? Even if Xbox One sales take off without Kinect, how is it better for M$?

A Kinect-less Xbox One is in other words M$ is killing the Kinect.

This is practically ditching the million dollar investment they had with R&D, cable companies, TV networks, Kinect game developers, information and data farming partners, NSA, etc."

With all that said I believe M$ is loosing more than 1 billion $$$.

All you M$ extremist only think of sales figures.

DragonKnight1168d ago

Kinectless Xbox One is better for consumers, but for early adopters it completely sucks as it shows that MS not only doesn't care about the early adopters (just like Cable and Phone companies who are always giving new customers better deals), but also that they had no real faith in the Kinect in the first place, or in their vision for the Xbox One.

So MS is screwed because of PR reasons and the cost put into their vision, and early adopters are screwed because they have a paperweight (and don't try to give me that 'oh it's useful for voice commands' garbage because a mic could suffice for that) that won't be supported, but everyone else gets a cheaper Xbox One that still won't measure up, technically, to the competition but can improve on itself with only the new customers seeing those benefits.

spacecat50501167d ago (Edited 1167d ago )

How does it completely suck for early adopters?

they have the full package, they can record, video skype and have the full xbox one experience? So how does it suck? Games from this point on wont be super powerful for kinectless Xbox's all of a sudden.

and a mic is not the same, thats like saying manually getting up off your couch and changing the channel on your tv is the same as using a remote sitting comfortably on your couch.

just stop with this false concern for the plight of the early xbox one adopters because the only thing they truly got robbed was paying 100 dollars extra. But then again that can be said with all early adopters as the price will come down for each console.

Magicite1168d ago

Does anybody thinks that unbundling kinect will bring them profits?
They invested huge amounts of resources to develop newest kinect tech and now its not selling.
It almost reminds me PS3 fiasco, now MS will be losing cash on each X1 sold if kinect wont be selling at all.

bass4g1167d ago

Not necessarily. In terms of R&D money, they've already lost that money. The only ways they'd be losing money on each xbox sold are if either they were underselling it or they were still producing the kinect at the same rate they were before (meaning that for each xboxone there was an unsold kinect). I don't think either of those are happening. It kind of sucks for ms and ms fans who bought into the kinnect but right now this is probably a decent decision financially. They were selling xboxones at a loss with the kinect bundled. That would have meant that they wouldn't be able to recuperate those losses on R&D and wouldn't be able to make a profit. Now that the xbox no longer has the kinnect it'll most likely sell for a profit which means that they can start to make money on the system again.

Elzer1168d ago

Lol microsoft may be the only console maker that can afford to lose 1 billion $$$$$$

TheSaint1168d ago

You need to differentiate between MS and Xbox, they are ultimately separate divisions, Xbox could fail as a brand and MS wouldn't hesitate to pull the plug.

If you think otherwise then that's pretty naive of you.

MightyNoX1168d ago

Zune ended up costing Microsoft hundreds and hundreds of millions of dollars. But that's okay, I'm sure their infinite money has allowed them to support Zune till this day and----

*Zune discontinued*


alexkoepp1168d ago

Lol even though Zune didn't do well it was a better device than the ipods of the time. Same with the surface pro - way better than an iPad but doesn't do as well. Microsoft has a hard time being first to market with good products, and don't get the market share. But they continually make devices better than the competition.

SniperControl1168d ago


What? Lol, most of the stuff MS develops is copied from other manufacturers, there consoles, phones, tablets. Face it MS are not really tech savvy, always years late to the part.

MS have a history of not listening to the customer, look at Zune, X1, Windows 8, Surface. There Windows mobile OS is hardly making a dent in the mobile market dominated by iOS7 and Kit Kat.

MS most profitable item is there Office packages.

+ Show (1) more replyLast reply 1168d ago
kenshiro1001168d ago

Jokes and mediate, you guys are pure jokes. You mean to tell me you couldn't go by without mentioning Sony?

fr0sty1168d ago

Add that to the billion lost by RROD, and the 4 billion lost by the first Xbox, and you see why investors and execs are floating the idea of spinning off the Xbox brand.

+ Show (4) more repliesLast reply 1167d ago
Cupid_Viper_31168d ago

Wow, one of the shortest articles I've read in a long time. That's it? That's all the information we get?

Literally just one paragraph.