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.
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.
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.
Well I guess there is still some hope.
"MGS has a lot of secret projects" If they are secret how do you know? You believe what you want to believe.
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.
"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.
why didnt they announce them at e3 or TGS?
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.
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?
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.
all that money could go towards the spartan army fight for freedom.
Ah yes. The Spartan Army. How could we ever forget it?
These secret projects are based on hype and nothing else.
Wow, $20 billion! I wish i had money like that to waste... I'd make a lot of people around me happy.
how he manages to keep his job. 20 billion over 8 years. shamWOW
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.
"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...
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
wow, no wonder microsoft never mention these facts. Im afraid the casual market will be full of 3ds loving. Not kinect.
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.
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...
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...
"Microsoft think long term"? Did you actually mean that? The design of the 360 alone doesn't exactly scream 'long term' thinking
It screams rushed for a quick buck.
It boils down to "Planned Obsolescence" to increase an imaginary total amount of "sold" systems out in the market...
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...
These simple truths are why I refuse to support the 360. OMG Really Really OMG. Did a 360 burn down your house? OMG
Well if this was his house.... http://www.youtube.com/watc...
@EasilyTheBest Why are you acting like a kid for that comment?
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..
wow just wow, from what I understand Sachs has already downgraded MS stock and this man's arrogant pride will cause to be downgraded even further. I see a shareholder revolt on the horizon and "screaming" balmmer out on his butt. Know when to cut your losses dude.
Any one know how much kinect R&D and marketing is costing Microsoft?
such business financials are very secret
Sure the EDD is a profitable business. It is just not as profitable as windows or office. But who can blame them? With Windows phone 7 series, which looks fantastic, and Kinect the EDD will launch two awesome products in the following months. I think MS should invest even more in the EDD to be on more markets than just OS, Office and Servers. Look, you never know what might happen next gen. Maybe MS creates a product like the Wii and starts printing money on that division, too. Imagine a division at MS as big as whole Nintendo as a result. Maybe Windows 7 phones take off even better than Android and MS gets a very decent market share. Bing is already in the top25 of the most used sites on the internet. It is not profitable in any way, but you have to be blind not to see the potential. MSN.com, Windows Live, Microsoft.com are in the top 25 as well. And as long as the overall situation is as bright as it is today for MS, I don't see any reason not to expand the business. Heck, they just reported a record revenue of 62 billion USD and a net income of 19 billion USD. Imagine MS would invest 2% of the yearly net income strictly on the gaming business. 380 million USD to spend and nothing to regret, because it is pocket-money for MS.
Firstlt people need to understand that Godman's down rating of MS has nothing to do with xbox or gaming. However, the gaming division of MS is doing very well and MS have managed to create this new business area and well done to them. As for more investment (first post). I think they are doing just fine. They've learnt a few lessons along the way (the hard way) and are getting better at it (the new silent xbox ;-)
"The Goldman report called it "the key to broadening the subscription base of the Xbox Live offering, which could result in a steady stream of recurring high margin revenues." as a day one charter gold member of Live, which I bet is a lot longer than many around here, I am NOT renewing Live when my current sub runs out. I just want to play games online. I dont care about useless apps. I can get on my TV via widgets, or my PC or our PC connected to our TV or the PS3. Why should I pay for features NOT related to gaming when I can get them free elesewhere
...Okay Microsoft, whatever you say.
Goldman Sachs started the down fall of alot of dedicated workers by buying our company and selling us to another wall street company that sold our company 2 years later to a company out of the country and we are still trying to find jobs since the end of Nov of 07. Goldman Sachs sucks
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