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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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Robochobo777d ago

"According to Michael Patcher."

So they really made $1 Billion?

UltimateMaster777d ago (Edited 777d 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.

kneon777d 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.

thebigman777d 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

hello12777d ago

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

Necro_559777d 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.

4Sh0w777d ago (Edited 777d 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."
http://www.gamasutra.com/vi...

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."
http://blogs.seattletimes.c...
http://www.digitalspy.com/g...

mediate-this777d 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.

JokesOnYou777d ago (Edited 777d ago )

Not much mediate-this:

"Not even PS4 success could stop Sony losing over $1 billion in the last year"
http://www.pocket-lint.com/...

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

Flames76777d 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.

tbone567777d ago

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

sinspirit777d 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.

Realplaya776d 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.

gaffyh776d 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...

360ICE776d 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.

avengers1978776d ago

@jokesonyou. How did you get so many bubbles?

tokugawa776d 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

BG11579776d 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.

MysticStrummer776d 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 776d ago
XiSasukeUchiha777d ago

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

miyamoto777d ago (Edited 777d 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.

DragonKnight777d 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.

spacecat5050776d ago (Edited 776d 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.

Magicite777d 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.

bass4g776d 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.

Elzer776d ago

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

TheSaint776d 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.

MightyNoX776d 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*

Oh...

alexkoepp776d 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.

SniperControl776d ago

@alexkoepp

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 776d ago
kenshiro100776d ago

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

fr0sty776d 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 776d ago
Cupid_Viper_3777d 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.

NatureOfLogic_777d ago

Admittedly, The article does seem rather short on the topic.

Christopher777d ago

It's part of their "numbers of the week" bit, where they just announce some big numbers from the week in short review to link back to their other stuff posted during the week.

azshorty2003777d ago

Better then some of the Tweets that get accepted on here counting as 'news stories'.

truefan1777d ago

If this article passes that is just unfortunate. No calculations, methodology, nothing. Not even a quote.

Christopher777d ago

They do cite Pachter as the source of the number. Better than most things we see on the site here. At least it's not an "anonymous" source :P

aerisbueller776d ago

'Analyst Michael Pachter: Microsoft will win next-gen console war'
http://www.neowin.net/news/...

'Michael Pachter Predicts PS4 to "Win" Next-Gen Console War'
http://www.escapistmagazine...

Codey47777d ago (Edited 777d ago )

The only thing that's unfortunate Truefan is the fans blind loyalty.
No calculations, methodology...nothing more than pure unadulterated bullshit.

Fact= the bane of most overzealous Xbone owners existence, this generation.

The only way Microsoft will learn the errors of their ways...
By denting the MS wallet...my bad, I mean...The MS champagne fund.

I seriously doubt they'll be cracking any bottles open any time soon.

SuperBlunt777d ago

lol blind loyalty at its finest huh? oh well e3 will be fun

andibandit776d ago (Edited 776d ago )

Blind loyalty huh?
Your 1 bubble aroused my suspicion, your comment history confirmed it.

Its like the blind leading the blind.

Acadius776d ago

And yet if Patcher was saying all of this about Playstation 4, you would be endorsing it. I am really starting to wonder if you are a special needs type of person. We really pity you and your ignorance.

ritsuka666777d ago

Xbox One damage is irreversible so as to teach them a lesson on trying to benefit from their customer's loyalty/ marketshare.

aPerson777d ago

Irreversible?

Not really. Microsoft screwed up, but they seem to be moving forward in the right direction now. Time will tell.

karl777d ago

how is retracting every decision they made in the past the right direction?

they have no idea how to save the xbox and MS just keeps reversing every decision that has negative response from the media..

thats not a direction by itself its all the opposite actually

they are not going anywhere =S

getting rid of all the reasons u wont buy an xbox wont make u buy it without any actual reason to own one...

LOGICWINS777d ago (Edited 777d ago )

"how is retracting every decision they made in the past the right direction?"

The mainstream doesn't know these retractions occurred though. Most will never know how close gamers came to having basic privileges taken away(loaning a game to a friend, playing offline etc.) The XB1 we get after MS conference on Monday morning is the XB1 that 90% of consumers will know for the next 6-7 years.

Not everyone goes to sites like IGN and N4G to get gaming news. Most just buy what they see on commercials. In fact, a lot of people who buy these consoles are surprisingly clueless about them.

When I picked up my PS4 last December at Best Buy at 9am on a Sunday, one of the people in line with me at the guy at the register "Which one has better graphics? PS4 or Xbox One?"

This guy woke up early on a Sunday to drop nearly half a grand on a new system and he asks a dumbass question like that

Do you really believe these people are educated enough to know what DRM is? Much less, what reversals MS made?

What happened at E3 2013 won't even be a memory for most consumers, because to them it never happened.

The hardcore have been very vocal. The PS4 is without a doubt the current console of choice for hardcore gamers. But at this point, every hardcore gamer that wanted a PS4 already has one. Mid 2014 will mark the beginning Sony/MS marketing to the mainstream. We've seen the beginning of this with the Project Morpheus demo with Jimmy Fallon.

The playing field will begin to level now that both consoles will begin at $399 as of next week. The people who think the XB1 will continue to get its ass handed to it they way its been for the past several months is sorely mistaken.

By the end of this gen, these consoles will be neck and neck saleswise. Instead of praying for one console/company to fail and the other to "destroy" the competition, we should encourage others to either or them. The more support next-gen consoles get the quicker devs will stop making cross gen b.s and devote all their time to next-gen/portables.

LOGICWINS777d ago (Edited 777d ago )

*buy either of them

NatureOfLogic_777d ago

@ logic, "Not everyone goes to sites like IGN and N4G to get gaming news. Most just buy what they see on commercials. In fact, a lot of people who buy these consoles are surprisingly clueless about them."

You're underestimating word of mouth. Take that clueless guy you just mentioned asking the "dumbass question" for example. If he becomes informed at that moment that PS4 has better graphics. What console do think he'll recommend to anyone who ask which one to get? If graphics decides his purchase, he'd most likely buy the PS4 over Xbox One. Which in turn leads to him recommending PS4 to his friends(thus the cycle recommendations begin). Word of mouth is always underestimated imo. But I believe word of mouth can help even weaker consoles(see Wii and PS2). Unfortunately for Xbox One, word of mouth was mostly negative news spread from the original reveal, which imo still paints Xbox One in a negative light.

LOGICWINS777d ago (Edited 777d ago )

"If he becomes informed at that moment that PS4 has better graphics."

......

No console has "better" graphics. Graphics are entirely dependent on developers and how they take advantage of the strengths of whatever system their working on.

How can you compare Sunset Overdrive to Infamous: Second Son? Or Halo 5 to Killzone: Shadowfall? You can't. We're talking about totally different art styles here.

Btw, we're assuming that graphics are everything to this guy. What if he recommends an XB1 to his friend instead of a PS4 simply because he's a huge Halo fan and he wants all his friends to play Halo with him?

Concertoine777d ago

@karl
So them getting rid of the things that made it a shit console is a bad thing? I dont care about DRM or kinect, i want a gaming machine and thats what they managed to turn it into in less than a year. I'll take that and give them props, not spin it like "now no one will support kinect" or "now it has no identity"...

ThanatosDMC776d ago

They should have a smartphone. Heck, even little kids have smartphones and can easily google ps4 vs xbone.

+ Show (4) more repliesLast reply 776d ago
BenqMagician777d ago

If the X1 lifetime sales are less then the 360 lifetime sales then yes "Xbox One damage is irreversible". I actually own a X1 and I think MS is going too be smoked this gen. But MS learned a very important lesson from the 2 gens they have been around "you can spend millions on xbox only games or lose billions in hardware".

Godmars290777d ago

I think more than anything, because of RRoD and various times they've banned modded consoles, 360 sales were inflated and brand in general isn't as popular as MS has presented.

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HaveAsandwich777d ago (Edited 777d ago )

If it keeps going the way it is, i imagine it'll end up more.