Robbie Bach interview..claims Xbox to be profitable in 08

[Gubbi]

Share holders are getting agitated, perhaps?

Don't think so.

The XBox business is much more worth (ie. if it were to be liquidated) than the accumulated losses associated with it.

The alternative would have been to go out and outright buy Nintendo for 15B$ (back then). The money they actually spent building the brand and the business is peanuts in comparison.

Cheers

 

[tuna]

Don't think so.

The XBox business is much more worth (ie. if it were to be liquidated) than the accumulated losses associated with it.

The alternative would have been to go out and outright buy Nintendo for 15B$ (back then). The money they actually spent building the brand and the business is peanuts in comparison.

Cheers

And how much profit has Nintendo done since 1999? And how much is Nintendo worth now?

 

[Cheezdoodles]

And how much profit has Nintendo done since 1999? And how much is Nintendo worth now?

Current market value of Nintendo today is $46 billion (this however becomes completely irrelevant if you start to compare profit, as market value is a result of expectations based on among other things, this. )

Net profit for 2006 was $1.47 billion U.S. Which was a 70% increase from 2005 ($829 million), average for the prior years where a very modest couple hundred millions a year.

You would also discount this money to get any proper numbers compared to 1999.

 

[Johnny Awesome]

Well, when MS is doing 15 billion in revenue per quarter, the X360 losses are definitely peanuts to them. It's a long term investment. If at the end of the day they end up with 35-40% of the console market (which is pretty likely IMO) it will all have been worth it. It was a high risk investment when they got into the business, but the potential returns are equally high.