Xbox Losing MS $2 Billion Per Year & Should Be Dropped

  • 141 results
  • 1
  • 2
  • 3

This topic is locked from further discussion.

#51 Posted by Sweenix (5398 posts) -

@Sweenix said:

@RossRichard said:

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

I agree, Sony needs Microsoft just as much as Microsoft needs Sony.

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

The XBox was better than the PS2 in pretty much everything aside from JRPGs (it still had some good ones though)

No it wasn't, and it's not even close.

The xbox did have great graphics, and the console itself was great, but it doesn't even come close to the ps2, not even in the slightest.

#52 Posted by XxR3m1xInHDn3D (1967 posts) -

@Sweenix said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@RossRichard said:

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

I agree, Sony needs Microsoft just as much as Microsoft needs Sony.

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

The XBox was better than the PS2 in pretty much everything aside from JRPGs (it still had some good ones though)

No it wasn't, and it's not even close.

The xbox did have great graphics, and the console itself was great, but it doesn't even come close to the ps2, not even in the slightest.

You've never owned the XBox then

#53 Edited by ZombieKiller7 (6248 posts) -

MS is losing money on everything except Windows.

They lost on Bing

They lost on Zune

They lost on Xbox

They lost on Surface

#54 Posted by ZombieKiller7 (6248 posts) -

@edidili said:

@Sweenix said:

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

PS2 was the result of Sony being afraid of Nintendo.

PS3 was the result of Sony being afraid of no one. Games, who cares, others will make them for us and yeah you're going to pay a premium price because this is playstation. Online/OS features, lol who cares. This is PS b....

PS4 was the result of Sony being afraid of MS.

This

lol remember when Sony released PS3?

"We are the Sony! You will pay extra to play our shit! teh cell!!!!111"

#55 Posted by shellcase86 (1934 posts) -

It's not unusual for MSFT to just up and "leave" an industry. However, they've invested a lot in the One. So I imagine they'll wait and see how the first 2 years turn out before making a decision.

#56 Edited by Sweenix (5398 posts) -

@Sweenix said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@RossRichard said:

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

I agree, Sony needs Microsoft just as much as Microsoft needs Sony.

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

The XBox was better than the PS2 in pretty much everything aside from JRPGs (it still had some good ones though)

No it wasn't, and it's not even close.

The xbox did have great graphics, and the console itself was great, but it doesn't even come close to the ps2, not even in the slightest.

You've never owned the XBox then

Well in my defense, hardly anyone owned an xbox :P

And the PS2's gaming library was not only much much much larger, it was better.

I'm not saying the xbox isn't good, and yes i have played it before, it just doesn't compare, no consoles will ever compare to the ps2.

#57 Edited by XxR3m1xInHDn3D (1967 posts) -

@Sweenix said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@RossRichard said:

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

I agree, Sony needs Microsoft just as much as Microsoft needs Sony.

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

The XBox was better than the PS2 in pretty much everything aside from JRPGs (it still had some good ones though)

No it wasn't, and it's not even close.

The xbox did have great graphics, and the console itself was great, but it doesn't even come close to the ps2, not even in the slightest.

You've never owned the XBox then

Well in my defense, hardly anyone owned an xbox :P

And the PS2's gaming library was not only much much much larger, it was better.

I'm not saying the xbox isn't good, and yes i have played it before, it just doesn't compare, no consoles will ever compare to the ps2.

Well as someone who has owned both since the early 2000s, the XBox is criminally underrated

#58 Edited by NathanDrakeSwag (5127 posts) -

@Sweenix said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@RossRichard said:

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

I agree, Sony needs Microsoft just as much as Microsoft needs Sony.

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

The XBox was better than the PS2 in pretty much everything aside from JRPGs (it still had some good ones though)

No it wasn't, and it's not even close.

The xbox did have great graphics, and the console itself was great, but it doesn't even come close to the ps2, not even in the slightest.

You've never owned the XBox then

Well in my defense, hardly anyone owned an xbox :P

And the PS2's gaming library was not only much much much larger, it was better.

I'm not saying the xbox isn't good, and yes i have played it before, it just doesn't compare, no consoles will ever compare to the ps2.

Well as someone who has owned both since the early 2000s the XBox is criminally underrated

No its not. The only thing it had was Halo.

#59 Posted by XxR3m1xInHDn3D (1967 posts) -

@XxR3m1xInHDn3D said:

@Sweenix said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@RossRichard said:

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

I agree, Sony needs Microsoft just as much as Microsoft needs Sony.

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

The XBox was better than the PS2 in pretty much everything aside from JRPGs (it still had some good ones though)

No it wasn't, and it's not even close.

The xbox did have great graphics, and the console itself was great, but it doesn't even come close to the ps2, not even in the slightest.

You've never owned the XBox then

Well in my defense, hardly anyone owned an xbox :P

And the PS2's gaming library was not only much much much larger, it was better.

I'm not saying the xbox isn't good, and yes i have played it before, it just doesn't compare, no consoles will ever compare to the ps2.

Well as someone who has owned both since the early 2000s the XBox is criminally underrated

No its not. The only thing it had was Halo.

Point proven

#60 Edited by DirkXXVI (497 posts) -

I've seen this discussed before, particularly when the so called "activist investor group" got a seat on the board at Microsoft.

While ValueAct has not been speaking much about its agenda, Nomura analyst Rick Sherlund has been talking about ValueAct in his reports. He seems to have a connection at ValueAct as what he's said about ValueAct has played out.

A few weeks ago, when discussing ValueAct's agenda, Sherlund said, "Xbox is cool, but by our estimates Microsoft has not made money at this. We are about to see the launch of the new Xbox One, so let’s not shut it down, but it is appropriate to add to the agenda of investments that need to be scrutinized and alternatives considered including the potential sale.

What a great idea. So lets see you have no real foothold in the tablet and phone market. Linux as a desktop OS has always been chomping at the bit, and it doesn't help that Valve is making Linux gaming a real possibility with SteamBox. So on that note you could easily end up loosing the enthusiast market which is a decent chunk of the overall declining PC market. And one of the few remaining mainstream products you have that allows you to indoctrinate a generation thats using Windows much less frequently then previous tech friendly generations, you want to sell off because it will look great on a quarterly earnings report? Enjoy being the next K-Mart or Sears 20 years down the road. Especially if someone succeeds in making a viable alternative to Office which will likely happen eventually.

Not to mention that all this comes at a time when the XBox Gaming division has started to turn a profit. Most of the loss is from early years which was the initial investment that came with establishing the division. I'm not saying that the Xbox division will become a cash cow for Microsoft, but at the very least it will keep them relevant to a generation thats just as comfortable with the Linux based AndroidOS and Apples iOS as they are with Microsoft Windows.

And given their inability to get a sizable market share in tablets and smart phones having that gaming platform becomes more important then ever.

#61 Posted by Heil68 (43484 posts) -

@shawn30 said:

@Heil68 said:

bu bu bu xbawx is so profitable!!1!!

@delta3074 said:

@Suppaman100 said:

@delta3074 said:

@Suppaman100 said:

@delta3074 said:

@Suppaman100 said:

@kuu2 said:

Up until last year Sony Fan thought Sony was bigger than MSoft as a company financially.

Sony Fan has no clue about numbers and financial statements.

More Sony Fan Clownery.

..U Wot m8?, nobody made such a foolish claim that Sony was a bigger company than MS.

U probably mad that financial advisors, important MS shareholders,... want MS to dump Xbox.

Couldn't disagree with them, Xbox has been a total failure for MS.

Xbox 360 has been making 70 dollars per unit sold since 2007, it's been a resounding success for MS, Also, i saw PLENTY of cows Try to claim that SONY has more money and was a bigger company than MS before the news that SONY made a loss for FOUR consecutive years.

As it stands at the moment

SONY

Market cap=17.41bn

Enterprise value=27.84bn

Debt=17.51b

Microsoft

Market cap=318.73bn

Enterprise value=233.19bn

Debt=20.24

A success? Did you even read the article?

"Microsoft's Xbox division is costing the company $2 billion per year."

It's just a fact. Xbox has been a complete and utter failure for MS.

Read this article. Important shareholders want MS to get rid of the Xbox division.

http://microsoft-news.com/activist-shareholders-may-force-microsoft-to-sell-xbox-bing/

The Article is BS, the xbox 360 itself has been in profit since 2007 and i highly doubt they are making a loss on xbox live, the fact that he claimed the Profits where almost exclusively coming from android royalties is obviously BS if the 360 itself is in Profit and they are making Bank from Live.

If you see Grabbing a huge chunk of your competitors market share, Making good per unit profit and raking in huge Profits from Xbox live fee's an utter failure then you need to get your head tested mate.

Please explain how the Xbox is losing MS 2 billion a year when both the hardware and the online multiplayer are both Profitable, in other words, what the Analyst is saying make absolutely no sense.

You do understand what the word 'suggested' means right?

Strong claims you're making. Where are your sources?

http://www.digitalspy.co.uk/gaming/news/a512543/microsoft-backing-incredibly-profitable-xbox-360-for-3-more-years.html

http://www.joystiq.com/2008/01/24/the-xbox-turns-a-profit/

http://www.joystiq.com/2008/04/25/the-xbox-360-turns-a-profit-again/

http://www.forbes.com/sites/velocity/2010/06/17/microsofts-xbox-live-is-making-boatloads-on-virtual-goods/

Dude!!!!! You know good and damn well he doesn't respond to facts or sources. You have to talk to him in the language he understands:

Moooooo! Moooo!!! SONY LOVES ME LIKE A GRANDPA! Moooo!

Also I will add these:

http://www.gamasutra.com/view/news/36011/Microsofts_Xbox_360_Division_Sees_132_Billion_Profit_For_Fiscal_Year_2011.php

http://www.gamespot.com/articles/microsofts-xbox-division-up-8-percent-in-q4-fiscal-year-2013-report/1100-6411705/

http://www.mcvuk.com/news/read/microsoft-xbox-live-growth-led-entertainment-division-to-profit-in-q4/0118805

Again, if the Xbox gaming division lost 2 billion its due to R&D, and the NFL deal and games for Xbox One. No way in hell they lose 2 billion a year since the 360 debuted. How many profitable fiscal year reports do you need to see concerning the gaming division?

Yup

lolz

#62 Posted by david61983 (154 posts) -

If M$ did leave the console industry, how likely is it that we'd see another company such as Apple or Google enter the console market? The Wii U is dying so Nintendo may not be in it much longer either and there's plenty of room for 2 consoles.

#63 Posted by darkangel115 (1505 posts) -

Sigh.

Sony is a 20 billion dollar company

MS is a 200 billion dollar company

Sony has lost 8 billion over the past few years in their hardware division (a big part of which is the PS)

Sony has had to sell buildings to pay bills

Sony has only stayed afloat selling insurance in japan.

Sony is selling the PS4 at a loss so again no profits in 2014 for them

MS is losing money on its tablets and windows phones.

MS has invested billions in R&D, Deals with partners, New IPs

MS is making over 2.75billion a year just on XBLG subscriptions (46+ million subscribers @ 60 a year)

The point is MS can afford to lose money. they make it but reinvest it right away. that's how they built the azure platform. MS has money to throw around. Sony doesn't. MS isn't backing out and IMO neither is sony. but anyone with half a brain can see if one was to drop out it would be sony not MS. but having both is much better for the gamers and anyone who wants to see one fail is an idiot. You don't want MS or Sony or any company for that matter having a monopoly.

#64 Posted by SonySoldier-_- (719 posts) -

TLHBO!!!!!!

#65 Edited by DirkXXVI (497 posts) -

@david61983: Valve with Steambox is pretty much the next competitor that will be coming regardless. However Steambox is really just a compact PC running a custom Linux OS designed for gaming. The real implication for that is it will make Linux a more viable gaming platform and make developers less reliant on DirectX for PC gaming. Opting instead for API's like Mantle and OpenGL.

Thats likely why we've seen the story recently about Microsoft releasing first party exclusives on Windows. They now have to protect Windows/DirectX as a gaming platform for the enthusiast market, because if OpenGL becomes a more widely adopted standard for developers then that means that people won't need Windows to play the latest and greatest games, instead they can download the Linux OS of their choosing and play games on Steam, most likely with less overhead.

#66 Edited by lhughey (4223 posts) -

Wouldn't the intelligent conclusion be that M$ needs to cancel WinPhone and Surface since that's where the losses came from? Well, that's not even intelligent, because those products are gaining in market share. The R&D and marketing involved in those new products (which is responsible for the losses) is worth it if they can gain traction to those lucrative market segments. In short, this has nothing to do with the Xbox.

#67 Posted by StormyJoe (4913 posts) -

Linky

Poor lems, cant catch a break :/

In the lead-up to the Xbox One's release, Nomura analyst Rick Sherlund has suggested that Microsoft's Xbox division is costing the company $2 billion per year.

Sherlund says that while Microsoft's Entertainment and Devices group, which includes Xbox, Windows Phone and Android, is profitable, this is almost exclusively due to Android payment royalties.

Sherlund argues that Microsoft should consider dropping out of the console market altogether, which seems impossible in the immediate future, given that Microsoft are just about to release the Xbox One.

If Sherlund's claims are accurate, Microsoft is losing around $2.5 billion a year on Xbox, Skype and Windows Phone once Android profits are taken out of the equation.

He's "having fun with numbers". It is possible, if you count the RRoD payouts and R&D costs, that the 360 averaged out to a loss, but the console has been selling at a profit for a few years now. Also, you have to include profits from Microsoft Studios; which would probably average it out.

#68 Edited by MacBoomStick (1948 posts) -

I would think that the company themselves would know when to pull out of a market and how much profit/loss they make on a product, not a bunch of video game forum posters.

#69 Edited by DirkXXVI (497 posts) -

MS is losing money on everything except Windows.

They lost on Bing

They lost on Zune

They lost on Xbox

They lost on Surface

Bing was important though. Granted I don't exactly trust Microsoft with servers upon servers full of information that can be sold but hey it provided decent competition to Google and kept Microsoft relevant. Regardless Search has and will continue to be a key part of the internet. If you look at it as a long term investment and a tool for future growth it's great.

Zune, can't blame them for trying to get in on the MP3 player craze. Kind of shocked that it tanked as badly as it did. Even today there's virtually no competition for stand alone MP3 players. Which I could understand if all the touch devices didn't have such poor hard drive capacity.

X-Box, as mentioned earlier in the thread, with their failure to catch on with tablets and smart phones this is the only real product they have left save Windows, in most houses. Brand awareness is pivotal. With X-Box you have a large base of customers that are more willing then others might be to give Windows phones and tablets a second look. Not to mention you have Bing for search on X-Box.

Surface, is likely a failure but I don't see them throwing the towel on that one just yet as it's to important a market in this day and age. It actually wouldn't be too bad if they didn't force desktop users to use THE SAME EXACT OS ON DESKTOPS!

#70 Posted by chikenfriedrice (9893 posts) -

Isn't Sony losing money too? So should they back out?

#71 Edited by Newhopes (4510 posts) -

@NathanDrakeSwag said:

@Cranler said:

@Pokemon266 said:

No wonder they haven't dropped the price in all those years :/ they cant possibly afford too

Lol, they made $23 billion in fiscal year 2012 and were the 4th most profitable company worldwide. MS can afford to do anything.

They can afford it but it makes no sense to keep losing this kind of money every year on a unsuccessful product. If the Xbone is a flop and they don't make their money back from the NFL deals, TV deals and all those DLC and timed money hats and lose the marketshare they gained this gen back to Sony you better believe they will pull the plug on Xbox.

So Sony should drop the Playstation brand?

Playstation lost money 6 of the last 7 years.

Xbox pure profit last 6 years straight.

#72 Posted by Chutebox (36653 posts) -

Some guy "suggests" something and we're supposed to believe him?

#73 Edited by NathanDrakeSwag (5127 posts) -

@Newhopes said:

@NathanDrakeSwag said:

@Cranler said:

@Pokemon266 said:

No wonder they haven't dropped the price in all those years :/ they cant possibly afford too

Lol, they made $23 billion in fiscal year 2012 and were the 4th most profitable company worldwide. MS can afford to do anything.

They can afford it but it makes no sense to keep losing this kind of money every year on a unsuccessful product. If the Xbone is a flop and they don't make their money back from the NFL deals, TV deals and all those DLC and timed money hats and lose the marketshare they gained this gen back to Sony you better believe they will pull the plug on Xbox.

So Sony should drop the Playstation brand?

The PS1 and PS2 were profitable and the PS4 will be too. MS has lost money on 2 consoles in a row and the Xbone is looking to be their biggest disaster yet.

#74 Posted by GioVela2010 (4018 posts) -

There is no such thing as the "xbox division"

#75 Posted by Chutebox (36653 posts) -

@Sweenix said:

@RossRichard said:

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

I agree, Sony needs Microsoft just as much as Microsoft needs Sony.

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

The XBox was better than the PS2 in pretty much everything aside from JRPGs (it still had some good ones though)

Did I really just read that?

#76 Posted by NineTailedGoku (1927 posts) -

@Nanomage said:

Unlike sony,MS has a huge operating income,they can afford to take huge losses for years and still be perfectly fine.

Why would they if its not making them any money? To make fanboys happy?

#77 Posted by XxR3m1xInHDn3D (1967 posts) -

@Chutebox said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@RossRichard said:

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

I agree, Sony needs Microsoft just as much as Microsoft needs Sony.

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

The XBox was better than the PS2 in pretty much everything aside from JRPGs (it still had some good ones though)

Did I really just read that?

Yep I owned both of them at launch

#78 Posted by seanmcloughlin (38214 posts) -

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

This guy gets it. People constantly want other systems to leave the industry and it would do more harm than good all so fanboys could just brag.

#79 Posted by DerekLoffin (8757 posts) -

Let's assume this is true, what the *bleep* are they doing with all that money? Game sales should be profitable. The console sales should be profitable. So, are they just burning huge money on marketing and R&D that I'm just not seeing the results of? Maybe XBL is in fact a huge money sink? It just doesn't make much sense to me that they could be losing that much unless they are being seriously irresponsible with the money behind the scenes.

#80 Edited by NineTailedGoku (1927 posts) -

@k2theswiss said:

Keep thinking that. Xbox 360 was very profitable

No, it wasn't. Same for PS3. Chart

#81 Posted by Chutebox (36653 posts) -

@Chutebox said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@RossRichard said:

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

I agree, Sony needs Microsoft just as much as Microsoft needs Sony.

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

The XBox was better than the PS2 in pretty much everything aside from JRPGs (it still had some good ones though)

Did I really just read that?

Yep I owned both of them at launch

As did I, it's still a pretty ridiculous statement.

#82 Posted by Chutebox (36653 posts) -

@k2theswiss said:

Keep thinking that. Xbox 360 was very profitable

No, it wasn't. Same for PS3. Chart

That chart includes years prior to 360 though.

#83 Edited by Tessellation (8797 posts) -

i don't want a sony monopoly that would be disgusting..just like the upset camp.

#84 Posted by Newhopes (4510 posts) -

@Newhopes said:

@NathanDrakeSwag said:

@Cranler said:

@Pokemon266 said:

No wonder they haven't dropped the price in all those years :/ they cant possibly afford too

Lol, they made $23 billion in fiscal year 2012 and were the 4th most profitable company worldwide. MS can afford to do anything.

They can afford it but it makes no sense to keep losing this kind of money every year on a unsuccessful product. If the Xbone is a flop and they don't make their money back from the NFL deals, TV deals and all those DLC and timed money hats and lose the marketshare they gained this gen back to Sony you better believe they will pull the plug on Xbox.

So Sony should drop the Playstation brand?

The PS1 and PS2 were profitable and the PS4 will be too. MS has lost money on 2 consoles in a row and the Xbone is looking to be their biggest disaster yet.

Actually the 360 has made a profit they just haven't recouped the losses from the frist xbox yet.

#85 Edited by XxR3m1xInHDn3D (1967 posts) -

@Chutebox said:

@XxR3m1xInHDn3D said:

@Chutebox said:

@XxR3m1xInHDn3D said:

@Sweenix said:

@RossRichard said:

Cows may love to see this happen, but MS leaving the console industry would be devastating. MS keeps Sony honest, and vice-versa. If MS left the industry, Sony would basically have a monopoly.

I agree, Sony needs Microsoft just as much as Microsoft needs Sony.

But, Sony having the entire industry to themselves isn't bad, the ps2 is without a doubt, the greatest console ever made, and sony had the entire market back then.

The XBox was better than the PS2 in pretty much everything aside from JRPGs (it still had some good ones though)

Did I really just read that?

Yep I owned both of them at launch

As did I, it's still a pretty ridiculous statement.

How? here are things that it did a lot better than the PS2:

HDD

much better online service and online games

better multiplats

better visuals

16 player system link in a lot of games

It's the best console available for modding and my launch XBox still works perfectly and I have modded the hell out of it and installed a 1tb HDD. My launch PS2 had problems reading discs all the time.

The main thing the PS2 did so much better than the XBox was JRPGs and platformers although games like Blinx 1+ 2, Voodoo Vince, Psychonauts, Conker Live and Reloaded, Shin Megami Tensei NINE and Crimson Sea were all really good. Every other genre the XBox excelled in and it had a lot of hybrid games that are hard to put into a genre that were amazing like Phantom Dust

#86 Posted by NathanDrakeSwag (5127 posts) -

Blinx and Voodoo Vince? LMAO. You just proved how much Xbox sucked when those were its best games. PS2 had the greatest library of any console ever made. RPGs, platformers, action games, adventure games, fighters, racers. PS2 had something for everybody.

#87 Posted by hrt_rulz01 (5790 posts) -

I hope for the industries' sake that they don't leave. Less competition is not good to anyone... except Sony & Nintendo.

#88 Edited by Couth_ (10016 posts) -

Sony as a whole isn't doing well. Xbox isn't doing well. The Wii U is a joke.

Someone is going to drop out for sure. That doesn't mean there will be a monopoly on the console industry. Someone else will step in just like Sony and Microsoft did. Could be a major company like Samsung or something. Could be a smaller dedicated company that has a good idea.. Could be steam integrating even more to the console market. Someone is always going to step in.

#89 Edited by NineTailedGoku (1927 posts) -

@Chutebox said:

@NineTailedGoku said:

@k2theswiss said:

Keep thinking that. Xbox 360 was very profitable

No, it wasn't. Same for PS3. Chart

That chart includes years prior to 360 though.

Yes, due to R&D

#90 Edited by XxR3m1xInHDn3D (1967 posts) -

Blinx and Voodoo Vince? LMAO. You just proved how much Xbox sucked when those were its best games. PS2 had the greatest library of any console ever made. RPGs, platformers, action games, adventure games, fighters, racers. PS2 had something for everybody.

Your reading comprehension is that of a 5 year old

#91 Posted by k2theswiss (16599 posts) -

@k2theswiss said:

Keep thinking that. Xbox 360 was very profitable

No, it wasn't. Same for PS3. Chart

first xbox was a loss but that was the begining of entering the gaming world. 360 was profitable

#92 Posted by PurpleMan5000 (6990 posts) -

Microsoft just needs to go 3rd party and put their games on the Wii U. They have some good software, but their hardware just sucks.

#93 Posted by Gaming-Planet (13998 posts) -

Xbox could be the beginning of the fall of the video game industry.

They are a great asset and developers make tons of money off of them. Competition is vital.

#94 Posted by dogfather76 (588 posts) -

@Pokemon266: Before you go there, I'd recommend looking at the price of Sony's stock. It not exactly on fire.

#95 Posted by NineTailedGoku (1927 posts) -

@NineTailedGoku said:

@k2theswiss said:

Keep thinking that. Xbox 360 was very profitable

No, it wasn't. Same for PS3. Chart

first xbox was a loss but that was the begining of entering the gaming world. 360 was profitable

So we shouldn't count the R&D of the console just to make 360 look better?

#96 Edited by lamprey263 (23194 posts) -

Sony is losing money too, in fact in reading their lastest quarterly report Sony attributed part of it's $2.2 billion loss on the R&D and production costs of the PS4, as well as planning for a Vita price cut.

This is an arms race, the point isn't to maintain profitability, spend money to shape the market and make more money down the road by attempting to edge out the competition. With Sony going to lose about 10% of it's remaining equity just this last quarter it probably can't go through too many quarters like the last one, I mean it has maybe $21 billion dollars in assets maybe left after this quarter (considering they sell $2 billion in assets to offset losses), and it's more like $14 billion since about since about $7 billion is goodwill (name brand value), and when that exceeds their equity they're going to be seen as insolvent, at which point they may start to sell off their assets to pay off debts. In such an event if it should happen, the PlayStation gaming division and assets will probably get sold off to the highest bidder; could be MS, could be Apple, could be Samsung, could be Valve, or maybe it'll be divided up multiple ways. Worse case scenario for Sony I might add, if they can turn things around for them it's not an issue, but I can't say MS wouldn't be ecstatic to see them removed as potential competitors.

Anyhow, that news that over the gen Sony lost $5 billion on the PS3 while MS lost $3 billion, guess that puts them on even ground as far as losses in investing in dominating the home entertainment market. And it's no secret MS spent lots of money on developing the X1, with the $100 million on the controller alone, and like $400 or $500 million on acquiring NFL license just to have a fantasy football app, and like $1 billion on exclusives, I'd say they're probably not going to see a return on that kind of money for some time, if at all. Thing is though, MS makes like $20 billion in profits annually (while losing money on the Xbox), Sony can't even make a profit; MS has that money to waste.

#97 Posted by Flubbbs (2974 posts) -

im not much of Microsoft fan anymore, but id hate to see them leave the hardware business.. same for Sony and Nintendo

#98 Edited by lamprey263 (23194 posts) -

@Flubbbs said:

im not much of Microsoft fan anymore, but id hate to see them leave the hardware business.. same for Sony and Nintendo

competition is healthy, and the fact that both MS and Sony tried achieving same standards strengthened those standards (like built in HDDs, online demos, friends lists, achievement/trophies, movie rentals and purchases, full retail games and smaller arcade titles, party chat, game updates, DLC, all that stuff, other entertainment aps like Netflix, Hulu, Crackle, Cruchyroll, etc), it reinforces a strong standard in gaming and home entertainment

plus both MS and Sony spend money on other studios to produce games that might otherwise get made, and make generous offers in funding and time to work on them to give us some pretty awesome games, and they do this to compete with one another

I think consumers benefit by this competition, whether you own one console or the other, or both

#99 Edited by no-scope-AK47 (2734 posts) -

Sony ran things with the ps2 and we got the ps3 (turned out good but sucked at 1st). Now that the 360 did damage we get the ps4 a almost perfect console. The x1 most likely is going to finish 2nd and next xbox will be much better. At this point I wonder if nintendo will drop out the race and go 3rd party.

#100 Edited by ominous_titan (594 posts) -

competition is good for the industry it would suck if xbone tanks, but MS has investors and investors like dividends and if there was ever a referendum on keeping xbox with its majority shareholders i can see it getting booted ,im a businessman and like it or not businesses are in business to make money thats it . with large companies like ms they are always trying to save a buck especially with the economy sucking still and now folks are buying smartphones instead of computers so MS will really be evaluating how to proceed in the future ,especially with a new CEO.

ps if you think MS is too big to care if they lose a bit of $ in their gaming division then you have no clue about business and should keep your comments to yourself