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Take that, Goldman Sachs? Ballmer defends Xbox spending

Microsoft CEO Steve Ballmer appears to have gone out of his way to defend the company's video-game investment during an appearance today at the London School of Economics.

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LordMarius3766d ago

I wish they would invest more and actually create a stable gaming empire. I know they are happy with their Halo + LIVE revenue, but thats just short term as seen by their 2011 lineup. If they had invested more than just trying to get a quick buck from Kinect and actually try to appease the base that made them I would agree with you Mr. Ballmer. But will see how next gen goes.

Raikiri3766d ago (Edited 3766d ago )

MGS has a lot of secret projects being worked on as we speak

Firebird studios : Set up to help push the visual boundaries of all Xbox 360 titles. Also working on an unannounced game

Wingnut Interactive: Set up in partnership with Peter Jackson to produce "filmic games". (the studio is still active after the cancellation of halo: chronicles,they are currently working at least on one project)

Rare and lion-head also working on unannounced projects

Those are only First-Party projects.

you also got Crytek working on Codename :Kingdoms and who knows what other secrets Third-party's have for the 360.

LordMarius3766d ago

Well I guess there is still some hope.

kerrak3766d ago

"MGS has a lot of secret projects"
If they are secret how do you know?
You believe what you want to believe.

Game-ur3766d ago (Edited 3766d ago )

Savvy investors knows Windows money is coloring XBOX profits.

People with small attention hype unit sales, but hundreds of millions are spent heavily on ads and purchasing 3rd party content, money that doesn't register on game division overhead that’s why bankers see the 360 as a white elephant.

cayal3766d ago

"MGS has a lot of secret projects being worked on as we speak

Firebird studios : Set up to help push the visual boundaries of all Xbox 360 titles. Also working on an unannounced game

Wingnut Interactive: Set up in partnership with Peter Jackson to produce "filmic games". (the studio is still active after the cancellation of halo: chronicles,they are currently working at least on one project)

Rare and lion-head also working on unannounced projects

Those are only First-Party projects.

you also got Crytek working on Codename :Kingdoms and who knows what other secrets Third-party's have for the 360."

I lol at the Microsoft speech here. You've named one game and nothing else.

maverick403766d ago

why didnt they announce them at e3 or TGS?

Millah3766d ago

Microsoft just doesn't know how to operate efficiently and profitably anymore these days. They venture out into different things, and every time can't turn it into profit. Especially with the Xbox brand being strong and selling well, they still cannot operate efficiently enough to be profitable. Sony has been able to turn the Playstation business profitable once again, even after all the losses they initially had with PS3. The only things that really contribute to MS profits are the same old things, Windows and Office. Office is probably more than half of their profits still.

karl3766d ago

anyway... xbox fanboys will be like.. 2010 was the xbox year
2011 is ps3.. but MS will rule again in 2012... LOL

i think that was said last year right?

Hades13373766d ago

Again we see disagrees for perfectly legitimate comments and agrees for blatant fanboy comments. You just can't take anyone seriously on this website any more.

+ Show (5) more repliesLast reply 3766d ago
King-Leonidas3766d ago

all that money could go towards the spartan army fight for freedom.

mirroredderorrim3766d ago (Edited 3766d ago )

Ah yes. The Spartan Army. How could we ever forget it?

3766d ago
bustamove3766d ago

These secret projects are based on hype and nothing else.

+ Show (1) more replyLast reply 3766d ago
ThanatosDMC3766d ago

Wow, $20 billion! I wish i had money like that to waste... I'd make a lot of people around me happy.

CBaoth3766d ago

how he manages to keep his job. 20 billion over 8 years. shamWOW

cereal_killa3766d ago

thats allot of Timed exclusive DLC and Map packs well spent Steve, and yet only 1 first party studio announce to take over the Reigns of Halo pretty dam pathetic if you ask me and yet this Idiot still keeps his job must have the same boss as Patcher.

Malice-Flare3766d ago (Edited 3766d ago )

"The company has funneled a great deal of investment into unprofitable consumer-facing businesses, specifically in its E&D division with Xbox and Windows Phone, and its (Online Services Division with Bing, as well as other internet properties over time (Hotmail, MSN, etc.). Over the past eight years, the company has absorbed over $20 billion in losses in its E&D and OSD divisions cumulatively. Once we allocate corporate costs based on revenue contribution, these divisions have failed to contribute to overall operating profit."

$20b in losses absorbed by MS and the division is still not profitable to this day...

to be fair, they counted two divisions, but still...

Shadow Flare3766d ago

It perfectly explains the apparent abandoning of the hardcore sector of the gaming Market into throwing themselves completely into the casual Market; a Market shown by nintendo to reap high profit. Microsoft had better hope kinect succeeds. Be interesting to see what happens if it doesn't. They've lost too much money trying to directly compete with sony, and I think they've seen that overall it hasn't been worth it

maverick403766d ago

wow, no wonder microsoft never mention these facts. Im afraid the casual market will be full of 3ds loving. Not kinect.

MorganX3766d ago

Luckily they can afford to invest in those things and wait. Xbox, Bing, and Windows Phone 7 are now maturing and doing well. Windows Phone 7 is still a question but looks promising and there is a lot of buzz and anticiplation. I know I'm getting an WP7 Ominia and dropping my iPhone. After dropping it for Droid and going back to it.

Malice-Flare3766d ago (Edited 3766d ago )

investor revolt or eventual profit?

investors don't like losing money even if it is covered by other profits. never mind that it has been 8 years...

EasilyTheBest3766d ago (Edited 3766d ago )

Microsoft remind me of The Terminator.....

“Microsoft isn’t afraid to lose money. It can't be bargained with. It can't be reasoned with. It doesn't feel pity, or remorse, or fear. And it absolutely will not stop, ever -- until you are dead.

Microsoft cant rely on Windows forever so spend the money now when they have it and get big elsewhere. Xbox Bing etc

@below - Im thinking moneywise.... Sony PS2 laser problems...

Shadow Flare3766d ago

"Microsoft think long term"?

Did you actually mean that? The design of the 360 alone doesn't exactly scream 'long term' thinking

maverick403766d ago

It screams rushed for a quick buck.

Oner3766d ago

It boils down to "Planned Obsolescence" to increase an imaginary total amount of "sold" systems out in the market...

moparful993766d ago

If one takes inventory of all the failed ventures and costly mistakes that microsoft has made its really not surprising that they are facing these financial woes... They will forever be mocked for the kin phone that they officially canceled mere weeks after its unveiling... Then you have the rrod fiasco which they vehiamently denied for a couple of years before finally admitting fault.. A 1 billion dollar band aid is hard for anyone to swallow, let alone microsoft.. But of course the corporate spin doctoring that microsoft is famous for persists, if not more aggressively now.. These simple truths are why I refuse to support the 360. Nothing to do with its merits as a console, which are quite good, but the company responsible for it lost my respect years ago...

EasilyTheBest3766d ago (Edited 3766d ago )

These simple truths are why I refuse to support the 360. OMG
Really Really OMG.
Did a 360 burn down your house?
OMG

radphil3766d ago

@EasilyTheBest

Why are you acting like a kid for that comment?

moparful993766d ago

So I dont have the right to support a companies products based on the behaviors of said company? Dude I dont know about you but I bust my hump to pay for my video game fix and I refuse to spend my hard earned cash on a product from a company that is so manipulative and shady as microsoft.. If you can't deal with this fact then sorry thats on you bud but I'm the one that has to decide how my money is spent..

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