Anyone have word on how much Microsoft made on the Xbox?

Bluevoodu

Site Founder
Supposively... after EVERYTHING was said and done... yes, licensing, money from games..etc... they lost around $100 Million *According to one of my suppliers.*

He was baffled because Microsoft was calling the Xbox a success... but they still lost $100 million in the entire deal.

I was looking for something to back that up. Suppliers generally know this stuff.... and are pretty decent with their figures.


Bv :hat
 
Well technically it wasn't a success, but I say it was. Even though they lost money on hardware Im sure they still sold a lot of it. I think it's safe to measure success by how many systems are in homes rather than making a profit.
 
creepindeth04 said:
Well technically it wasn't a success, but I say it was. Even though they lost money on hardware Im sure they still sold a lot of it. I think it's safe to measure success by how many systems are in homes rather than making a profit.
hm.... I wish all businesses were held to that standard.

ANYONE can lose money and get tons of systems out there.

Bv :hat
 
Supposively... after EVERYTHING was said and done... yes, licensing, money from games..etc... they lost around $100 Million *According to one of my suppliers.*

He was baffled because Microsoft was calling the Xbox a success... but they still lost $100 million in the entire deal.

I was looking for something to back that up. Suppliers generally know this stuff.... and are pretty decent with their figures

Oh BV, you and your anti-Microsoft propaganda...

First of all, I don't accept this hearsay as fact, even if it was from a "credible supplier." If he doesn't work for Microsoft, or can't show any proof of sales figures, then I don't believe him. I have a hard enough time believing he exists, let alone believing he's been witness to Msoft board meetings that discuss fiscal policy.

Secondly, you're thinking short term. Losing $100 million dollars (if they actually did) and becoming the #2 househould console around the world in one generation is a success. I'd like to see another company jump on the scene the way Microsoft did. They have developed a fan base that is going to stick with them for several generations to come. Every loyal fan of Microsoft is presumably going to pump in thousands of dollars on future Microsoft hardware, software, and the like. You gotta spend money to make money, and Microsoft is looking to make a lot.

The reason why the Xbox was a success was because it totally established Microsoft as a major player in the videogame business. Whether it was a financial success or not is debatable, but until we get some real data there's no point in argueing over hearsay and conjecture. Unless you guys really want to, in which case my friend Bob that works at EBgames said that Microsoft actually turned a profit of 100 gajillion dollars. In the meantime try to understand that Microsoft's goals for the Xbox could have had nothing to do with money (in the short term, mind you), they may have even projected an even bigger loss when they first made the decision to make a console. It's a success if it met their goals (establishing a fanbase, breaking into the market, appealing to their target audience, minimizing monetary loss, etc.), so obviously if Msoft is saying it was a success, then it did meet their goals, whatever they were.
 
which goes back to my last point.... how do you determine success?

A business determines success on profits.  It may be a success because it got out there.... but when you bleed red, what does it matter?

this was not meant to be anti-microsoft.... it is a legitimate issue.  If Nintendo became #1 again, but was bleeding red... what does it matter?  you keep losing money... it will eventually kick you in the teeth... and yes, it will do that to even Microsoft.

Short term... 4 years? that isn't necessarily short term. Business defined short term is 1 year or less.... some say 1-2 years... but 4 years isn't short term. We'll see how much they lose or make on the 360-

The source was from my supplier who pretty much knows the stats... but I wanted to see if anyone else had figures.

BV :hat
 
stealth toilet said:
Whether or not you reached your goals. If Msoft is saying the Xbox was successful, then they mean it reached the goals they had set for it.

But what if they are just saying that so they dont cause concern to shareholders or even the customers?
 
Hey, breaking into the market like they did was impressive.

So what if they lost money? They have said many times they are in the console business for the long run. It could have gone MUCH worse.
 
But what if they are just saying that so they dont cause concern to shareholders or even the customers?

Yes, trust me, I am completely aware that they could be lieing, that they were dissapointed, and that it wasn't a success, even in there eyes. That's what BV has been saying from the start, and I understood that, I'm just showing the other side of the coin, that if we assume they are not lieing then my arguement is the logical choice.
 
stealth toilet said:
Yes, trust me, I am completely aware that they could be lieing, that they were dissapointed, and that it wasn't a success, even in there eyes. That's what BV has been saying from the start, and I understood that, I'm just showing the other side of the coin, that if we assume they are not lieing then my arguement is the logical choice.

Well obviously since I said what you said much earlier than you. :p
 
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