46 Comments
- Akaji, on 10/12/2007, -6/+30Please quit Digg.
- thekms, on 10/12/2007, -3/+27It's funny how digg hates Microsoft [Windows] and at the same time loves them [the 360].
I realize they're entirely different, but still... - Seruphim, on 10/12/2007, -5/+25some people should not be allowed to use the internet.
- turpenine, on 10/12/2007, -2/+15I am still convinced microsoft is just trying to squeeze sony out of the living room a little bit more and then introduce less improvements.
- dime, on 10/12/2007, -3/+14I'm afraid Microsoft is dropping the ball on this one. They're in the prime position to make a price drop, finally get a decent market share and really stick it to Sony.... but what do they do? Announce an even more expensive version that approaches PS3 prices. It's sad to say, but with Elite vs PS3, the PS3 is a better value. If Pro was somewhere between 299-349, on the other hand...
As much as I like my Wii... the fact is there aren't many top notch games yet. I've been looking forward to grabbing a 360, but I sure aint paying $400 for it. - Seruphim, on 10/12/2007, -9/+19Please quit life
- scott1, on 10/12/2007, -2/+11Like 10-14 year olds
- scott1, on 10/12/2007, -2/+10@Farik
http://img441.imageshack.us/img441/2231/lifeexexb0.png - inactive, on 10/12/2007, -7/+14Why is microsoft losing money with the 360? Why is the xbox division held up as a success? How long will they stay with a product that is a total cash drain?
- Malakin, on 10/12/2007, -3/+8@Yarnage
zybch is being dug down because he's wrong. In the future, please take a moment to Google something before proclaiming that everyone else is wrong.
Here's the information directly from Microsoft. Note that "Entertainment and Devices Division" is what most people call the xbox division. The xbox division has always lost money and it's still losing money.
http://www.microsoft.com/msft/earnings/FY07/earn_rel_q3_07.mspx
According to Forbes, back in 2005, the xbox division had lost a total of 4 billion dollars at that point.
http://members.forbes.com/global/2005/1003/036A_4.html - inactive, on 10/12/2007, -6/+10Microsoft is in the console business to get into the living rooms on consumers, for things like movie downloads, IPTV later this year, etc.
- stubadub, on 10/12/2007, -0/+3Exactly. They've already indicated they are OK with losing some money on the deal and don't expect to be profitable until the next go around. Why not drop prices now while there aren't any games compelling enough to get people out buying PS3s en mass.
If I was on the fence about which system to get, and I could get the current premium system for $300 or the PS3 for $600, I'd definitley go 360. Later in the year when the games start coming out and the PS3 decides to drop the price it might be a different story. - turpenine, on 10/12/2007, -0/+3ban this guy please.
- giveer, on 10/12/2007, -4/+7Actually, from what I hear, Microsoft would save a pissload of cash if they didn't have to fork over for labour and shipping to fix all the ones that break.
- deadbaby, on 10/12/2007, -2/+4They will stay as long as it takes because they are terrified that set top boxes might make the PC less relevant. It may not seem that way at first glance but the Xbox is a firewall protecting their core business model. Same goes with MSN, Windows Mobile, Zune, etc. They don't have to dominate those markets -- they simply have to have some presence to make competitors less powerful. Microsoft knows how powerful a monopoly status really is. They won't let Sony, Apple, Nintendo, etc run away with these markets even if they have to burn cash in the process. As long as Windows/Office remain insanely profitable (and they will) Microsoft will be playing defense.
- fantasticFlan, on 10/12/2007, -9/+10Until they win, then they'll stop making significant improvements and just rake in the cash.
- Nysul, on 10/12/2007, -4/+5@eyepower
"Do not forsake Nintendo"
I'm under no obligation to any company, and Nintendo had way more than its fair share censorship and anticompetitive practices back in the day. I play what is fun, not if x puts out y, - scotticus, on 10/12/2007, -3/+3Ship -fewer- 360s.
- chickenchaser, on 10/12/2007, -0/+0@macmcrae, the video game business is one of scale. It costs a ton to develop and market a video game console. It costs even more if you are selling each one at a loss. To make up for this, Microsoft collects fees on every game sold, but for these revenues to offset the losses, you really need scale (lots of consoles out there that people are buying lots of games for).
- stauken, on 10/12/2007, -6/+6How many Wii games actually get your adrenaline going like playing Saints Row or GoW multiplayer do?
I haven't played any Wii games, so I'm not being sarcastic, I really want to know. I've been contemplating getting a Wii to compliment my family enjoying gaming as much as I do with my 360. - MrSteamTank, on 10/12/2007, -1/+1Why would microsoft have a price drop right now? They just released the elite and are making some extra cash and with the other consoles not dropping their own prices and the ps3 sub-par sales they don't necessarily have to price drop.
In november though they clearly will drop the price for the christmas sales. Microsoft will probably do something else from now til then but who knows. Maybe the new elite becomes the premium? - chuckamuck, on 10/12/2007, -2/+2Exactly. Why would Microsoft drop the price on the Xbox?? They have a far superior machine compared to the PS3 and it costs $200 less. Even the Elite is $120 LESS than a PS3!
- inactive, on 10/12/2007, -3/+2That butters guy at the top, yeah .. this is him -> http://a808.ac-images.myspacecdn.com/images01/28/l_6ddf85bf3be4d6fd6aebd90885beaf57.jpg
- Seifey, on 10/12/2007, -3/+2360 BOX ELITE X?
Intriguing. - scotticus, on 10/12/2007, -5/+4Yay! You're the winner! You bought technology that other people bought!!! Whee!!!!
Your teh koolest!!! Woot!1!!!
If your sense of self worth comes from what electronic gadgets you bought, you should re-evaluate your life. - stauken, on 10/12/2007, -4/+2Thank god I hate microsoft. ;)
But damn they did good with the xbox 360, even if I think there are some questionable 'marketplace' practices. - manfrin, on 10/12/2007, -11/+9As long as it takes to make their competitor (Sony) crumble in this market.
Microsoft isn't in it to make money with the 360, they're in it to hurt Sony's Playstation 3, which means Sony has less clout with things like formats (Blu Ray vs. HDDVD) and less clout with game developers. It also means losses for Sony. Microsoft can afford to play this game of attrition, and in the end Sony is the one that suffers. - dielawn, on 10/12/2007, -6/+4they also shrunk on support!
- inactive, on 10/12/2007, -5/+3Inaccurate, as described anyway. The lesser sales is only ONE reaosn (of many) for less losses.
And oooooh...They sold fewer XBoxes 14-17 months after launch than they did 2-5 months after alunch? WOW!
Guess what? The Wii will dothe same in 2008. They will not sell as many consoles in January-MArch 2008 as they did this year. - TheIneffableBob, on 10/12/2007, -8/+4I think pie should be legalized for the greater good of wageslaven.
- Seph7, on 10/12/2007, -9/+5360 Fan boy patriotism alert!!!
- stauken, on 10/12/2007, -7/+2Microsoft knew and intentionally designed the Xbox 360 to be a cash drain. Not that they like throwing money away, but it provides gamers with a great experience at a much more reasonable price (Again, this was not their intention either). As several others commented, they are in it to destroy the hold Sony has had over the gaming industry. And it's been quite successful. That's why it's touted as a success, just ask Capcom about Devil May Cry 4.
- Storm9, on 10/12/2007, -9/+4Heh and the internets hates Ps3, yet 360 sales are declining.
While Ps3 sales are doing decent even when there are NO GAMES OUT!
Lol, i just love it when im right.
PS3 will pervail in the end.
Just like how Blu Ray is beating HD-DVD.(I supported Blu-Ray from the begenning)
And iPhone will pwn. - deadbaby, on 10/12/2007, -9/+4The difference is that Microsoft has played fair in the console market so far. They've put a ton of money into it and they've built a pretty good platform. My big concern is in the long term if Microsoft is successful with the Xbox they might revert back to their shady behavior.
- tharju, on 10/12/2007, -6/+1@manfrin "they're in it to hurt Sony's Playstation 3"
oh wow, i didn't know Microsoft hates Sony that much. but then again manfrin is just a fan boy so i guess i shouldn't be that surprise. - kenvsryu, on 10/12/2007, -11/+6If you love microsoft you will stop buying xbox 360's.
- Yarnage, on 10/12/2007, -7/+2Why is zybch being dugg down? He's 100% correct.
This article talks about losses in theft (hence "shrink" in the title). I have absolutely NO IDEA why all of you are saying they're losing money... they're not. All companies have shrink. - turpenine, on 10/12/2007, -10/+4well, the 360 was made using ppc architecture
cough macs
... - inactive, on 10/12/2007, -11/+4Microsoft AREN'T losing money. They make a small amount per console ($47) and have been doing so for the past 6 months.
Buried as inaccurate. - okkman2, on 10/12/2007, -8/+1Please quit life
- stauken, on 10/12/2007, -9/+1"It's funny how digg hates Microsoft [Windows] and at the same time loves them [the 360].
I realize they're entirely different, but still..."
Digg?
You mean Digg users right?
At any rate, as stated, hate microsoft here, but Vista+Xbox360 = ultimate media center and worth every penny of the investment it took to make it work. - eyepower, on 10/12/2007, -11/+1I don't know how many of my friends refused to believe that MS would never be a money maker in the gaming console world, but I owe them all a GIANT-sized I told you so. Do not forsake Nintendo. They understand the gaming market better than anyone. Their price point appeal and pure fun factor will yet regain them the number one spot. Microsoft is all "Shock and Awe" with no substance and no fun. Wii tenis, on the other hand, is fvcking fun! It takes more than tech heavy graphics to make an appealing game. Nintendo understands that the platform is far from perfect and is willing to step out on a limb to deliver games that are PLAYABLE and FUN! I want an interactive system. If I wanted to simply stare and drool I would just watch porn.
- Farik, on 10/12/2007, -16/+6End Process --> life.exe
- Butt3rs, on 10/12/2007, -59/+1If Microsoft wants to stay ahead of the competition...they better start putting out more. Not like that digg user's...ur sick!
- Butt3rs, on 10/12/2007, -90/+2If Microsoft wants to compete with Nintendo...they better start putting out. Not like that digg urser's...ur sick!


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