is it a smart move?

not sure if this was posted already, apologies if so

http://www.forbes.com/sites/timworstall/2013/09/06/microsoft-upends-the-economics-of-games-machines-with-xbox-one/

MS chose to take a different route rather than using conventional methods. Thoughts?

 

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Last updated July 4, 2018 Views 2 Applies to:

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Yes, why not business makes money, look at Xbox live 8 years of paying £25 a year, now next gen we have a huge load of dedicated servers it's only getting better!

£429 is not a lot of money for a bit of tech that will/should last 8 years that's £53.62 a year.

IMO I feel it's a smart move because they have a proven online service that generates alot of income which in turn is a tool for them to use to sell more games and other services not yet mentioned. A win win situation !

Sure is a smart move. I'm quite surprised they managed not to incur heavy losses or even break even per unit sold. That means it will start turning a profit quicker which means it could drop in price sooner. I don't know who I'm kidding with that last part lol.

They'll always aim to profit I hope, they need growth, not just on the consoles but to recoup the losses on buying Nokia, they need to develop and also invest in new IPs as-well as to conduct business.

Their aims should always be to profit, it is a business after all.

Yusuf Mehdi stated that. He's a marketing guy.  He gets paid to blow sunshine up peoples rear ends to make it sound like the right way to do it and that's what their intentions are, whether they were or not.. Let me add; That's marketing peeps for any company, not just MS.

@Burst I'd have to agree with you on the concept of price drops coming sooner, it'll be some time until that happens obviously but, I'm loving this approach.

they may be breaking even per console.... but what about all the servers they added, the development needed.... etc etc etc... I am sure if you take the total cost of everything involved from thought to Xbox on UPS truck... they are in the red...

@tohellnbak They don't factor that into the cost of making the console but since they will be breaking even mostly they will make that money back faster.

I am sure they have considered postage lol, and marketing etc it is a business after all, they don't just think oh no forgot about paying staff lol.

I'll leave that up to them.  I don't think any of us are qualified to tell them what their business/marketing strategy should be.  I'll assume they have people making those decisions that are waaaay more qualified than us.  :)

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