As Microsoft meets with financial analysts today, discussing its prospects in areas including consumer products, one subject clearly on the minds of analysts is the recent $1 billion charge taken by Microsoft from Xbox 360 malfunctions.
I only posted this about 10 minutes ago. The Sony fanboys must have swarmed on it like flies on their moma's cooking.
To make 13.7 Billion any day.
Trust me kids Microsoft isn't loosing money.
Sure the malfunctions were a black eye but all black eyes heal, ask any rich boxer.
It will be better for Microsoft when they fix the problems cause a 3 year warranty is a long time and will give the idea of a well made product (name some cheap products that have a warranty for this long)
MS loves guys like you.
Washing machines have three year warranty. My car has 5. PS3; 90 days!
360 with a 3 year extension for ONLY RROD. ALL OTHERS GET SOAKED!!!!
My name is a Mark.
First I pay $399.99 then I pay for accessories and ONLINE and blah, blah, blah.
Then in 3 years MS will give me another Xbox so it goes like this:
THESE MARKS LOVE ME!!!! A sucker is born every second...Now I believe it!! I thought it was a legend but I see it is true all along. Some people will be suckers for anything. JUST ANGLE IT RIGHT and you got em HOOK, LINE, SINKER!!!!
Hey, youre covered WHEN it breaks!!! WOW.
$399.99 + $59.99 LIVE + HD-DVD $199.99 + $200 in accesories = $859.97 not including games. With 5 games @ $59.99 = $1159.92
Take $1159.92 + NEW XBOX in 3 years ($499.99?)= TWO GRAND...limited BC.
ALL 360 owners are Marks....SUCKERS...LOSERS...BU T I GET GREAT GAMES. WOW.
I don't feel anything anymore for 360 LOSERS...Get lost Mark. Get Lost!
Uuuhh, M$ is LOSING MONEY in it's gaming division. They're still making money off of Vista, but not much. And spend 1B to make 13.7B?!? where'd you get that from!?
Following this quarter's write offs and charges due to the new warranty program, MS's entertainment division should show a profit starting with the new quarter. I don't expect it to be huge, but it should be the divisions first, and the beginning of a positive profit curve.
It wasn't just about the $1billion hit MS took cause thats not a lot to them (somewhat). Still it's all about the image the xbox has created...it loses trust from consumers...I mean lets say if a company has to recall a product..first thing comes to mind is damn they made a unreliable product...For example Ford Explorers have suffered from it and many others...Either way it wasn't just about the $1billion put aside.
n wat the fu&k do u mean they aint losing money you dumb ass , they're losing a lot of money since xbox 1 first came out n with the xbox 360 is the same story jesus how long are they juss gonna keep loosing money poor microsoft , i know bill gates is rich but i think he'll get tired of losing money
you gotta put alot of money into it to see any gains, and they will see gains.
Microsoft's Entertainment Division (in charge of Xbox and Zune) doesn't seem to be showing even a sliver of a gain. It's safe to say that Microsoft wants to pull the plug on the Xbox brand. It's had 6 years to turn a profit, and instead it's done the opposite. People keep saying "Well, maybe next quarter they'll be profitable", and it never happens. Sounds pessimistic, but in this case it's absolutely true.
u would really like that huh DJ, im guessing u have wet dreams over this sorta thing.
Of course they will hurt somewhat, but loses are very normal
1 billion in extra loses they would not have lost the 1 billion if they had made a reliable console
if someone stabs a guy once with a knife and severs a major artery and kills him and the same guy stabs someone else x50 and he dies, what.....are u going to say the second guy died extra. My point is a loss is a loss what sh!t are u sayin, you make it sound as if they somehow had exact preset figure on how much money they would lose.
LOL are you off your head or something
If the xbox 360 was a reliable machine like the PS3 & Wii then they would not have to pay 1 billion on the warrentys and i dont think this was on there business plan either for the xbox360
so the 1billion is a unexpected loss
This is really hurting the XBOX BUSINESS. No one likes loosing money all day. MS and its partners have invested BILLIONS in the XBOX division. The real question is how much more longer are they willing to take till some sort of REAL profit is earned?.
-I think a good start is by discontinuing the core package COMPLETELY. It was by far the worst "Choice" you could give to your customer. Hopefuly they pull through cause live is a really good service.
DJ i totally agree with you. Problem is try and get those "die hard xbox gamers" that who always seem to be in denial. For some reason xbox gamers always think MS investors care more about their needs than money...Im sure MS investors always love losing money just so xbox gamers want competition for Sony.
If you don't care about the Xbox then you wouldn't care about this. I don't know why so many people think they have to change someone else's mind. Microsoft has made mistakes, they've acknowledged them. And now they are committed to correcting them. They're redesigning hardware and they're fixing broken consoles. That means something to people that own them.
One thing people need to learn about Microsoft. No matter what you think you know about that company, they don't enter a market to lose. They've spent more money to buy failing companies and turn them into successful product lines than they have lost since they started making consoles. As long as they are in it, they are in it to win it. You can't count them out until they say they are out of the game.
I sorta agree with you...However it's not MS you have to worry about it's the shareholders. Also they did invest a lot in telecommunications in the past (maybe more than their gaming division) and cut there losses. I know MS is in it to win it but enough is enough.
For any of you commentors to actually believe MS is getting out of the gaming business. I shouldn't even need to say this! Wow! Is it coinsidence that it's coming from PS3 fanboys?
If the shareholders really wanted to get out, they would of done it at the end of the Xbox1. You don't lose a ton of money and then get back in the ring unless you plan on going the rounds. MS(entertainment division) will be in the black come the end of this year or Q1 of 08. The companies overall revenue was higher than last year. This isn't Sega we are talking about here, its flippin Microsoft.
As I read some of these posts, I just have to wonder how many posters are Xbox employees asigned to deflect criticism and diffuse the issues raised with these articles. I remember when I worked on Xbox, we had people on the team who did this as part of their jobs. So I caution all readers to take posts with a grain of salt. Sony probably does the same, to inflame passions against 360. It's only Nintendo that seems above the fray, and for great reasons. They are kicking everyone's butts with true innovation that consummers want. Are you reading this marcw? Remember my email on this topic (intuitive controllers, big button controller, wider market, etc.?), well before NTD announced their product? I see that you are now impementing some of what I recommended. 2 years too late...
On to substantive topics. As for profitability, MS has lost at least 6 Billion so far. Maybe 6.5. There is no way they can make that up in this, or even the next 3 generations combined. The plan for 360 was 1 billion in profit on 15 billion of revenue. So 6 billion in profit make up shows a very tough row to hoe for any gaming co.
MS claim of profitability in 08 is in real time, cost vs revenue in those fiscal quarters. So for what they spend qtr over qtr then, they might make a small profit. It completely ignores historical losses. And it will evaporate as required price reductions outpace possible cost reductions. It would require a heroic turn around to erase that previous loss. MS will never, can never, be profitable in the gaming space. Forever. So you might as well quit talking about it. It won't happen. Share holders need to know though.
But MS knows that Xbox will never be profitable. And its not required as far as they are concerned. I just wish they would tell their share holders and customers. Bill and Steve have signed off on this. That's why they agreed to the w extend. Xbox was a strategic (read defensive) product unit. It was intended to protect and extend the Windows monopoly into the living room.
Just look at what they are doing with connectivity and functionality with the windows PC in the entertainment space if you don't believe me. Zune is also part of that. Think "connected entertainment life no mater where you are or what you want to do". Zune has plans to produce a handheld like the iphone, but MS flavor. Connected to the 360 and Media center PC. Just wait until this holiday. Or go search patents. You'll see what I mean.
As for the defects, you poor dumb asses just don't know what really happened that led to te current sad state of afairs. If you did, you heads would explode and you would march on Redmond with torches, like the villagers did in Young Frankenstein. 360 leadership(toddhole) made so many bad decisions in such a clear succession over time leading up to the w ext that they s/b held crimanally liable. Especially since they continue to hide substantial info about the extent of the defects and costs involved. But I have insider info, and don't expect you folks to know this. That's why I am telling you.
So to summarize, don't believe what you read, MS has plans you don't know about (and will never), and the defects story isn't over. No matter what MS tells you.
PS: If there is enough interest, I'll tell you all more, and might consider revealing who I am and what role I played at Xbox. Rest assured I was a principle in HW quality and reliability. Do you sense that I'm pissed? You bet you're ass!
The thing that bothers me, is not the 1 Billion that Microsoft has lost, the big thing that bugs me was how they tried to sit there, look smug and lie about the whole thing "Oh we made a high quality console, there can't be any problems."
So then microsoft goes and blames us loving fans for not taking care of our consoles and tries to make us look stupid. But then calls keep coming in and finally microsoft has to look like a fool. If they were just more honest and open with their consumers. I wonder how long it will be until microsoft says "okay yes the X-box scratches disks, our bad."
I agree, but be careful what you address, and in what section of the site your addressing it in. there are people about that take personal offense to any shade cast on their lovely companies.
but the real reason I wanted to comment: see you space cowgirl.
I would have loved to see Ballmer at this thing.
"WHO SAID SITDOWN!?!?!?!!"
is a complete idiot.
At least he acts like one.
I got 25 360 games and I dont have any scratches on my disks. Do you stand your console upright or what if you do you should lay it flat b/c I dont have any problems.
By the way did anyone ever tell you look like a sun flower :) lol
I doubt it's as Painful as thoes Rush my Red Ring warranty calls! M$ needs to quit losing money an get their Systems in Gear. No I don't own a 360 yet, an alot of people say "you don't own a 360, how can u say that about xbox?" My answer "you don't got to taste a doughnut to know it's sweet!"
Hey guys you know how most say the defect rate is 33% thats wrong.
I just read in Gamepro magazine today thats its 25% but thats still way too high. Come on MS, your as* is on the line get this problem solved.
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