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Will Microsoft finally make a profit?


sagat

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I could not believe media reports that Microsoft never made a profit from the Xbox (all?). They are hoping that Halo3 would boost sales. So far Halo has made over £84m. In my personal opinion, i think the majority of buyers on the day were current Xbox owners or already have an Xbox as a second console. I don't think they were huge Xbox sales. I think they won't make any significant profit despite Halo selling more than the Harry franchise; strange world indeed.

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Well for starters they are losing $2 billion alone just for the repairs for the broken 360s + extended warranty. The first Xbox was never there for profit, juist to get a brand name in peoples houses. They were hoping the 360 would get some money back, but it got screwed up with the high percent of breaking down systems.

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No chance. As said above, 360 repairs are proving too costly

 

On the note of people buying 360s, on Halo 3 launch day i saw some bloke bring in his PS3, 5 games and 2 controllers. Guess what he got for all that? A Halo 3 edition console and a copy of Halo 3. Thats it. Must have been £600 worth of kit there and Gamestation gave him a £320 trade in lol

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No chance. As said above, 360 repairs are proving too costly

 

On the note of people buying 360s, on Halo 3 launch day i saw some bloke bring in his PS3, 5 games and 2 controllers. Guess what he got for all that? A Halo 3 edition console and a copy of Halo 3. Thats it. Must have been £600 worth of kit there and Gamestation gave him a £320 trade in lol

 

Ouch, he could of gotten a fair amount from ol' ebay.

 

Or he shouldn't have bought a PS3 in the first place, I mean he didn't have it for that long so a waste of money.

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They lost around $5 billion on the first Xbox and it sold only slightly more than Gamecube. Expensive PC hardware with hard drive, DVD etc. were sold at a loss similar to PS3 nowadays. Q4 2004 (Halo 2 release) is still the only quarter the Xbox division has made a profit.

 

The hardware is expected to be much less expensive now, but the repairs might eat up the profits.

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MS have alot of sources of revenue Nintendo and Sony dont have such as Xbox Live. Accessories on 360 are overpriced of which many people have brought. They are quite profitable but their penny pinching also is the reason they have such a high fault rate. Although some argue that the hardcore fans are rebuying broken 360's which negates this.

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