Problem with “Microsoft Ban For Profit” argument

I posted this elsewhere but I thought it deserved it's own thread. With the latest wave of bans I've seen an interesting argument pop up a lot. Some users seem to think that Microsoft are banning consoles to force people to buy new ones. Apparently this is because Microsoft is evil and only cares about the almighty dollar rather than its customers.

This argument does not make much sense.

The problem is that, like a lot of other console makers, Microsoft sell the Xbox (both the original and 360) at or below their manufacturing costs.  In fact when the 360 first came out the company was losing something like $200-300 every time someone bought an xbox (quoted from memory so feel free to correct me). This is a fairly common situation in retail products, especially games consoles. The idea is that while they lose money on the hardware, they greatly increase their market share. The results are a far larger number of potential customers, allowing them to make their money back on the sale of actual games.

This is why the "banning for profit" argument is so strange. For ever console that Microsoft ban, they LOSE money. Whatever the reason for the latest wave of bans, it certainly isn't profit.

 

Question Info


Last updated July 4, 2018 Views 8 Applies to:

* Please try a lower page number.

* Please enter only numbers.

* Please try a lower page number.

* Please enter only numbers.

Additionally who would be stupid enough to buy another console from a company that falsely banned them?

Did this solve your problem?

Sorry this didn't help.

Great! Thanks for marking this as the answer.

How satisfied are you with this reply?

Thanks for your feedback, it helps us improve the site.

How satisfied are you with this response?

Thanks for your feedback.

[quote user="braunman"]The problem is that, like a lot of other console makers,[/quote]What "other console makers" ? There's Nintendo, Sony, and Microsoft. Nintendo does not sell at a loss. Sony sells at a profit for the life of the console hardware. Microsoft sold the original XBOX at a loss as a business decision. The 360 is intended to sell at a profit over its lifespan.[quote]Microsoft sell the Xbox (both the original and 360) at or below their manufacturing costs.[/quote]The original XBOX was sold at a loss intentionally. It was never intended to make a profit on the hardware. They built a console using IP from Intel and nVidia, neither of which were ever going to lower prices enough for Microsoft to make a profit on the hardware.[quote]In fact when the 360 first came out the company was losing something like $200-300 every time someone bought an xbox (quoted from memory so feel free to correct me).[/quote]The iSupply teardown estimated the 360's cost at $530 at launch. By 2007 it was breaking even. Ever since then it's been selling at a profit.[quote]This is a fairly common situation in retail products,[/quote]No, it's not.[quote]especially games consoles.[/quote]Especially not game consoles.[quote]For ever console that Microsoft ban, they LOSE money.[/quote]Every console sold today is sold at a profit.[quote]Whatever the reason for the latest wave of bans, it certainly isn't profit.[/quote]The current wave of bans is due to marketplace theft.

Did this solve your problem?

Sorry this didn't help.

Great! Thanks for marking this as the answer.

How satisfied are you with this reply?

Thanks for your feedback, it helps us improve the site.

How satisfied are you with this response?

Thanks for your feedback.

venier snake

have you ever played gears of war or halo that was the only reason i bought an xbox and will continue to buy xboxes even if i have been banned

microsofts= needle

halo/gears/forza=crack

me=addict

but that does not mean i will stand for injustice, but i need my crack

Did this solve your problem?

Sorry this didn't help.

Great! Thanks for marking this as the answer.

How satisfied are you with this reply?

Thanks for your feedback, it helps us improve the site.

How satisfied are you with this response?

Thanks for your feedback.

This definitely about profit. I don't think this round is about modders, it's looks and sounds like it's about pirated disc, not people cheating. I don't play online and never used a pirated disk, but still banned. I can trace every point and every purchase back to 2008, so it's not about stealing points.

They've come up with something to detect pirate discs, which eat into profit, and that something is flawed.

I'm having the same disc read problems on the same discs that everyone has been talking about.

I live alone and unless someone broke into my house to play Xbox, this is impossible.

Did this solve your problem?

Sorry this didn't help.

Great! Thanks for marking this as the answer.

How satisfied are you with this reply?

Thanks for your feedback, it helps us improve the site.

How satisfied are you with this response?

Thanks for your feedback.

@icestorm

Um the ps3 was selling at a loss up to like a year or 2 ago...

@tc
Um the 360 has been making profit for about 4 years now.


 

Did this solve your problem?

Sorry this didn't help.

Great! Thanks for marking this as the answer.

How satisfied are you with this reply?

Thanks for your feedback, it helps us improve the site.

How satisfied are you with this response?

Thanks for your feedback.

[quote]venier snake

have you ever played gears of war or halo that was the only reason i bought an xbox and will continue to buy xboxes even if i have been banned

microsofts= needle

halo/gears/forza=crack

me=addict

but that does not mean i will stand for injustice, but i need my crack[/quote]

Yes, no and yes. Go out and get some help if that's your relationship with games.

Did this solve your problem?

Sorry this didn't help.

Great! Thanks for marking this as the answer.

How satisfied are you with this reply?

Thanks for your feedback, it helps us improve the site.

How satisfied are you with this response?

Thanks for your feedback.

Another major issue that actually tends to prove the banning consoles for profit is the fact that Microsoft has any sort of system where a system will be banned but not the gamertag....this makes no sense and one can see how this fosters the idea of banning for profit...One would think if a console was banned and forever unlike gamertag bans which aren't always forever system bans are always ""pernament"" then the gamertags associated with that 360 or located on that 360 would receive the same pernament ban...Instead at times the system is banned the gamertag ignored thus advertising hey its not over just go buy a brand new 360 at 299 or 350 dollars and you can get back on.

Did this solve your problem?

Sorry this didn't help.

Great! Thanks for marking this as the answer.

How satisfied are you with this reply?

Thanks for your feedback, it helps us improve the site.

How satisfied are you with this response?

Thanks for your feedback.

Here is all the information you will ever get, no amount of crying will get Microsoft to discuss it, nor will they ever lift your ban. www.xbox.com/.../consoleban

Did this solve your problem?

Sorry this didn't help.

Great! Thanks for marking this as the answer.

How satisfied are you with this reply?

Thanks for your feedback, it helps us improve the site.

How satisfied are you with this response?

Thanks for your feedback.

[quote user="WilliamRLBaker"]@icestorm

Um the ps3 was selling at a loss up to like a year or 2 ago...[/quote]Sony has a 10 year lifespan laid out for the PS3. They can sell at a loss or break-even for several years. They did the same with the PS2. Sony's plan isn't to lose money on the PS3 for its entire lifetime, it's to break even over the course of its lifetime.[quote]Another major issue that actually tends to prove the banning consoles for profit is the fact that Microsoft has any sort of system where a system will be banned but not the gamertag....[/quote]This assumes the primary user of the console is the one that is responsible for marketplace theft. It doesn't have to be given how the exploit works.

Did this solve your problem?

Sorry this didn't help.

Great! Thanks for marking this as the answer.

How satisfied are you with this reply?

Thanks for your feedback, it helps us improve the site.

How satisfied are you with this response?

Thanks for your feedback.

why would Microsoft do this in the end they would just lose money anyways

Did this solve your problem?

Sorry this didn't help.

Great! Thanks for marking this as the answer.

How satisfied are you with this reply?

Thanks for your feedback, it helps us improve the site.

How satisfied are you with this response?

Thanks for your feedback.

* Please try a lower page number.

* Please enter only numbers.

* Please try a lower page number.

* Please enter only numbers.