Xbox (360) Is Nexus of Entertainment Strategy

[Sis]

What is clueless about that particular statement?

I have seriously been contemplating buying a second Xbox (maybe a core) to use as a Media Center Extender, simply because cost-wise there's only a small premium for the Xbox over a standalone MCX, even though it does a lot more.

.Sis

 

[eDoshin]

I can't see shipped numbers being all that off from units sold. After all, a retailer will not continue to stockpile consoles if the units are not moving as fast as they are delivered in a somewhat reasonable fashion. Assuming that every unit in the supply chain is counted, then its reasonable to assume that given a certain amount of time, each and every one of these consoles will be sold (and not half a year from now).

 

[jvd]

Tell Nintendo and Sony that you can't good money of selling consoles and they will laugh in your face.

sony lost million off the console .

Just selling a console isn't going to make money mckmas

Selling games and acessorys will .

 

[Shifty Geezer]

Dunno about that. We don't know how quickly production costs scaled, when PS2 became profitable, how much it was profitable, and whether profits made later in PS2's life offset losses made early in it's life. If costs scaled reasonably Sony have probably been making a profit for the past 3 years, and I imagine overall the hardware has made money rather than lost money.

 

[mckmas8808]

Dunno about that. We don't know how quickly production costs scaled, when PS2 became profitable, how much it was profitable, and whether profits made later in PS2's life offset losses made early in it's life. If costs scaled reasonably Sony have probably been making a profit for the past 3 years, and I imagine overall the hardware has made money rather than lost money.

yeah I agree Sony has probably made a decent amount of money off of the PS2 hardware. Imagine if Sony is making $3 per PS2 (reasonable amount that I pulled from my), if they were to sell 20 million consoles in one year that would make Sony 60 million dollars. Now this is only an example, but the point still stands since we know that they are making a profit on the PS2 now.

 

[London Geezer]

yeah I agree Sony has probably made a decent amount of money off of the PS2 hardware. Imagine if Sony is making $3 per PS2 (reasonable amount that I pulled from my), if they were to sell 20 million consoles in one year that would make Sony 60 million dollars. Now this is only an example, but the point still stands since we know that they are making a profit on the PS2 now.

60M is not a lot of money. The main point is that they were not losing money anymore on the hardware, not the money they might have made off it.

The main source of income for them is the software and peripherals.

The hardware just needs to be on the positive side. As long as it stops making a loss, they're happy and have nothing to worry about.

They can make lots of profits off software, peripherals and other hardware (TVs and such).

 

[mckmas8808]

60M is not a lot of money. The main point is that they were not losing money anymore on the hardware, not the money they might have made off it.

The main source of income for them is the software and peripherals.

The hardware just needs to be on the positive side. As long as it stops making a loss, they're happy and have nothing to worry about.

They can make lots of profits off software, peripherals and other hardware (TVs and such).

Well yeah that was my point. I was just showing that money can be made. This last quarter SCE had around 70 million dollars in operating income. If my made up $60 million were true (or lets say $15 million per quarter) then that would have accounted for a decent amount of income.

 

[London Geezer]

Well yeah that was my point. I was just showing that money can be made. This last quarter SCE had around 70 million dollars in operating income. If my made up $60 million were true (or lets say $15 million per quarter) then that would have accounted for a decent amount of income.

... 15M for a company as big as Sony is not an income. It's spare change.

 

[mckmas8808]

... 15M for a company as big as Sony is not an income. It's spare change.

Yeah I know, I'm saying that it's better than nothing. And it's worth mentioning that money can be made off of console hardware sales. By saying money can't be made, then that person would be telling a lie.

 

[Shifty Geezer]

... 15M for a company as big as Sony is not an income. It's spare change.

More important how much money PS2 might have made is the point of the post, responding to jvd's assertion

sony lost million off the console

If Sony can make $20 per PS2, which doesn't seem out of the question with the shrinkage (according to my pie-in-the-sky maths principles) that's $400 million last year on hardware. Hence jvd's likely wrong in thinking Sony lost millions off the console hardware and it's only through software and peripherals that money is made.

 

[mckmas8808]

If Sony can make $20 per PS2, which doesn't seem out of the question with the shrinkage (according to my pie-in-the-sky maths principles) that's $400 million last year on hardware. Hence jvd's likely wrong in thinking Sony lost millions off the console hardware and it's only through software and peripherals that money is made.

Which is exactly what my original point was. Whew! Thanks Shifty.