MS has no intention of making money off Xbox Next...

[Deadmeat]

I saw this week's BusinessWeek coverstory on Microsoft and there was the sales and profit projection of core MS businesses. Xbox business is listed as a money loser through 2008, and MS still stands to lose hundreds of millions even if its annual sales hit $4 billion...

From this graph the goal of Xbox program was clear; its sole purpose of existence is to hurt SCEI by taking away market shares and not allowing SCEI to recoup its investment, and MS will do everything in its power to continue to hurt SCEI, profit be damned.

Kutaragi Ken might have met his match even he could not overcome....

 

[Tahir2]

Kutaragi Ken might have met his match even he could not overcome....

Bill Gates-san might have met his match even he could not overcome....

 

[Megadrive1988]

Deadmeat, I thought you were certain that Microsoft was NOT wanting to take massive losses on the next Xbox.

 

[Deadmeat]

...

Bill Gates-san might have met his match even he could not overcome....

This is not a joke. SCEI is going up against an opponent with a bottomless bank account, a vastly superior development environment, and a long history of successfully eliminating its rivals. SCEI can't possibly hope to recoup its CELL investment against a rival willing to lose a couple billion to make sure CELL fails...

It's kind of strange that it will be PSX3 that will be forced out of market even though it is Xbox Next that's actually losing billions....

Bill Gate's Kill List :

WordPerfect
Apple Macintoshi
Lotus 1-2-3
IBM OS/2
Novell Netware
Palm Pilot
Netscape Navigator
SCEI PlayStation3(TM)

 

[jvd]

I highly doubt they will kill the ps3.

They may bring its market share back to earth but both companys are spending billions . If both can make that money back is the big question.

Sony is of course trying to spread the money spent across as much as possible to recoup it . Ms doesn't seem to care .


Hopefully we will see a more even market so that we can get a ton of great games with lots of price drops on the hardware (like the sega vs nintendo days )

 

[Deadmeat]

Deadmeat, I thought you were certain that Microsoft was NOT wanting to take massive losses on the next Xbox.

MS is engineering Xbox Next to cut cost whereever they could, but look at the loss projection; MS's losses are projected to increase, not decrease, through 2006~2008, which means MS is planning to launch Xbox Next at $299 in 2005, then cut the price below $200 when the PSX3 launches in Spring 2006. MS is planning to keep the price difference large enough for SCEI to not recoup its massive CELL investment. If SCEI doesn't recoup its investment, then there will be no PSX4...

MS is far more determined and sinister than I though they were, more so than Kutartagi Ken.

 

[freq]

Sweet mother o' Jebus!! So the fact that the X-Box is LOSING money, is proof that the companies MAKING money are doomed?!?? OK, sign me up for the Deadmeat school of business!!!

Man, forget about MS, the REAL competition is the PHANTOM console!!! Not only are they NOT making any money, they don't have any customers, games, or products!!! That's THREE FOR THREE!! Sony, Nintendo and MS are all doomed!!!



Damn that's some stupid stuff....

 

[I.S.T.]

Re: ...

Bill Gates-san might have met his match even he could not overcome....

This is not a joke. SCEI is going up against an opponent with a bottomless bank account, a vastly superior development environment, and a long history of successfully eliminating its rivals. SCEI can't possibly hope to recoup its CELL investment against a rival willing to lose a couple billion to make sure CELL fails...

It's kind of strange that it will be PSX3 that will be forced out of market even though it is Xbox Next that's actually losing billions....

Bill Gate's Kill List :

WordPerfect
Apple Macintoshi
Lotus 1-2-3
IBM OS/2
Novell Netware
Palm Pilot
Netscape Navigator
SCEI PlayStation3(TM)

*Jaw gaping even wider than in the thread cybamerc is trolling in.*

You've said some weird things before, but most of them had a chance of being possible. Not this. If the X-Box had had the aproximate success of the PS1, maybe. This makes no sense at all. How do you know that MS had bottomless pockets? Or that Sony doesn't? MS in that pic you posted looks like it'll have a grim future.

 

[Deadmeat]

...

I highly doubt they will kill the ps3.

Not kill it, but grab enough market share to prevent SCEI from recouping its investment and force it to exit console market.

The PSX3/CELL investment was made on the assumption that SCEI will maintain its market dominance in the 5th generation. Now this is unlikely because of MS's policy of "Grab marketshare at all cost, even if it means losing billions"....

They may bring its market share back to earth but both companys are spending billions . If both can make that money back is the big question.

MS doesn't need to make its money back.
SCEI does, and this is what MS is after, to destroy SCEI's profitability.

 

[Lazy8s]

The richer the company, the longer they can sustain investment before they need to see the return. SEGA could only wait two years with their last console, Sony plans six year cycles, and Xbox is currently on a twenty year cycle.

 

[Teasy]

This is not a joke. SCEI is going up against an opponent with a bottomless bank account, a vastly superior development environment, and a long history of successfully eliminating its rivals. SCEI can't possibly hope to recoup its CELL investment against a rival willing to lose a couple billion to make sure CELL fails...

Yeah right, because MS did such a good job hurting Sony's PS2 with XBox didn't they Its only cost them $2-3 billion in losses so far to be humiliated by Sony's console.

 

[Deadmeat]

...

Yeah right, because MS did such a good job hurting Sony's PS2 with XBox didn't they Its only cost them $2-3 billion in losses so far to be humiliated by Sony's console.

And they plan on keep losing billions until Kutaragi Ken sees the writing on the wall and exit console market...

 

[I.S.T.]

Problem is, MS is worth 51 billion. If they lose enough money, they will say screw it. Same with Sony, but I doubt MS is that stupid to try and wait out Sony.

 

[Tahir2]

It's kind of strange that it will be PSX3 that will be forced out of market even though it is Xbox Next that's actually losing billions....

Will be? Deadmeat you certainly are the Prophet of Doom for Sony. I am sure on hearing this news Sony are literally quaking in their boots.

MS may have a large amount of money but it is not a bottomless reserve. You can expect MS to forced out of the market if Xbox2 is a financial disaster for MS. Just look at the news Deadmeat, MS cancelled premier sports titles scheduled for later on this year because of the fact that MS would never recoup development costs on these games. This is bad news for the consumer not good news.

If you expect MS to throw money at Xbox2 like it is going out of fashion based on what they are already doing with Xbox then you have a very poor grasp on reality.

And my comment was not a joke either. This is the way I see it. Sony to be unsucessful rests entirely on what they do with PS3 and if they make monumental mistakes then sure Sony is not invincible either. MS with Xbox is merely a negligible annoyance to Sony which has marketshare. If MS go the route you think they will be then MS will be its own enemy not Sony.

BTW I think your analysis on that report and your comments are completely out of touch.

The bottom line: Microsoft's looks past its prime...

 

[AlphaWolf]

Yeah right, because MS did such a good job hurting Sony's PS2 with XBox didn't they Its only cost them $2-3 billion in losses so far to be humiliated by Sony's console.

And they plan on keep losing billions until Kutaragi Ken sees the writing on the wall and exit console market...

Ya that'll teach Sony. If you don't stop making consoles we'll lose another 100 billion!!!!

OMG Bill's just crazy enough to kill his own company, sony better stop before someone gets hurt.

 

[Psychogenics]

Re: ...

Yeah right, because MS did such a good job hurting Sony's PS2 with XBox didn't they Its only cost them $2-3 billion in losses so far to be humiliated by Sony's console.

And they plan on keep losing billions until Kutaragi Ken sees the writing on the wall and exit console market...[/quote]

Your an Asshole DM and MS sucks bad ,The whole world knows this but you seem not to know the truth.....MS muscles are shrinking bigtime.Xbox was just a suppliment to stop that but it didn't succeed.

Is it me or did I hear this before....Xbox was to take over the world eventhough MS would bleed for three years....Gets what Now they're going to bleed until 2008?

You suck and MS sucks with ya for supporting Bums like you!!!!


Another post like this and you will be banned

 

[Deadmeat]

...

Problem is, MS is worth 51 billion. If they lose enough money, they will say screw it.

The projection shows MS losing around $4 billion on Xbox Next. So is MS throwing the towel now????

Same with Sony, but I doubt MS is that stupid to try and wait out Sony.

The difference is that MS has no debt and has a bottomless bankaccount, while Sony is under heavy restructuring and is borrowing billions to finance CELL R&D. MS can play this money-losing game far longer than Sony could, its financial health is already poor to begin with.

 

[Lazy8s]

Even though the Xbox is piling up the losses, the company is still growing billions of dollars richer every year.

 

[cybamerc]

Its only cost them $2-3 billion in losses so far to be humiliated by Sony's console.

More like $3-4 billion.

 

[nobie]

This really surprises me. It looks like the launch of X-Box 2 will just make the losses even worse. I wonder if the losses continue up to 2010, will MS want to make an X-Box 3 or will they give up the market? Financially they could do it, but it wouldn't make business sense IMO.