XBox profitable now...?

[BenSkywalker]

Sanford C. Bernstein analyst Charles Di Bona, in a research note, said Microsoft stood to benefit from higher sales of more profitable game software even as discounts cut into its revenues from sales of the money-losing Xbox console itself.


"Preliminary reports from retailers indicate that game software is moving extremely well this holiday season as discount-driven console sales through the fall have boosted the installed base," Di Bona said.


That extra Xbox-related earnings contribution could range from 1 cent to 4 cents per share even allowing for the possibility that hardware revenues could fall.

http://story.news.yahoo.com/news?tm...p;u=/nm/20021211/tc_nm/tech_microsoft_xbox_dc

 

[Gubbi]

They're probably still losing money on the hardware. But as the installed base is growing, revenue from games should increase (and increase and increase....)

Cheers
Gubbi

 

[cybamerc]

License fees won't make up for the massive losses on Xbox hardware, Live and the various bundles.

I'm absolutely confident that M$ will post significantly higher losses for Q2 than it did for Q1.

 

[Magnum PI]

who cares about what Sanford C. Bernstein analyst Charles Di Bona can say...

Sanford C. Bernstein boosted its rating on Enron Corp.'s stock to "outperform" on Sept. 14, 2001, for example, when the energy company's shares were at $32.76.

Six weeks later, it published another report, called "Reports of Death Greatly Exaggerated. The Numbers Work," maintaining the rating. In December 2001, Enron filed for bankruptcy court protection.

http://www.charlotte.com/mld/observer/2002/11/01/business/4418150.htm

speaking about the microsoft settlement:

"Despite what some of Microsoft competitors are pushing for, this does reaffirm
the whole concept of intellectual property," said Sanford C. Bernstein analyst
Charles Di Bona.
"In the long run, that's good for technology."

http://groups.google.com/groups?selm=20021104200544.05397.00002504@mb-fw.aol.com&output=gplain

http://www.microsoft.com/uk/casestudies/caseStudy.asp?CaseStudyID=150

these guy have as much credit as spong.com...

 

[mat]

i really doubt that xbox is near profit.

i've just found this bundle:
Xbox + Halo + Jet Set Radio Future + Sega GT 2002 + Blinx + 2 Controller for 249€


the games alone costs more than 249 when you buy them seperately

 

[London Geezer]

they are litterally giving them for free, how is that supposed to be profitable?!?!?!?!


makes me wonder, ps2 the older underpowered console is actually more expensive than the new super duper advanced one.... by a long margin... at least here in the UK..... Surprised XBOX and GC are still not catching up on weekly and monthly sales..... might even decide to get either of them sooner than later

 

[Johnny Awesome]

1. MS doesn't pay anywhere near retail for the bundled games.

2. People will still buy 10 games over the life of the system.

3. Therefore, MS will eventually make money. Probably from 2004 onward.

 

[Qroach]

of course MS is going to make the money lost back of the games. that's how this entire business model works. I can tell you that I've already purchased 20 games for my xbox...

 

[duncan36]

Microsoft is willing to take huge losses in the immediate time frame because they're sure that profits from liscensing games will suddenly lift them to profitability, which of course will never happen. But it will keep them in the race, which is what they have to do to stave off the threat of Sony releasing a PC compliant Ps3 for $299 that destroys Microsofts multi-billion dollar monopoly.

 

[Gollum]

mat, that bundle sounds familiar, AFAIK its nothing official but rather a local (might even be only one particular store) offer of a specific retail chain here in Gemany, this bundle sure made the news though!

 

[Vince]

of course MS is going to make the money lost back of the games. that's how this entire business model works. I can tell you that I've already purchased 20 games for my xbox...

You do realise that for every one of you, there are 5 people who basically bought 1 game?

Not exactly helping out the cause that as the base expands, so will profits

© How to Lie with Statistics, 2002.

 

[Johnny Awesome]

Actually for every one of us (I own 16 Xbox games) there are 5 guys who only bought 3-4 games. That's still pretty healthy at this point in the lifecycle.

 

[BoddoZerg]

And there are PC gamers like me who would never have thought of buying a Xbox except that Bungie pwned us by delaying the PC version of Halo for several years. =/

 

[Rodéric]

and there are people like me who don't want to support M$ and won't buy the console, unfortunately not enough people getting that consumer rules the market....

**resisted bashing humans and M$**