xbox one to lose 1 billion + dollars

this year according to Barrons.

 

 

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Last updated July 4, 2018 Views 2 Applies to:

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uh-huh... so?

Sony made a whopping 18 Million off the sales of 1 million PS4's,  Pretty sure Microsoft will get a much larger return on their investment  from their first million sales.

I am pretty sure they said each unit they sell will net a profit....  so lets figure this out....  they sold 1 million units within the first 24 hours.... so if they are say gaining only $50 / per unit....  that is $50,000,000.00 profit on the units ALONE in the first 24 HOURS... now lets start talking games... and XBL....  somehow I think you are just grasping for something to make you happy inside....

I think they were making almost $100 per console sold,  $85 rings a bell for some reason.  Sony shot themselves in the foot with their $400 price point.  Making $18 a console isn't going to bring you very much happiness.  Thats what you get for trying to undercut your opponent.

The business model for lots of hardware devices these days is to lose money on the device itself, and make all the profit off the subscriptions, warranties, and software.

Microsoft is making money off xbox live gold and games. Sony priced their hardware -- which is arguably better than the x1s hardware -- $100 cheaper. And they don't have a subscription service. They're REALLY banking on people buying their games to make up the difference.

Considering the hooplah over the x1 "hiding features behind a paywall" I'm betting sony is a bit annoyed that the sales were so close. MS now has a million people paying $60/year -- which isn't chump change. Sony would LOVE that kind of steady, predictable revenue stream. Instead they're going to have a feast-or-famine stream -- when a blockbuster game comes out, they'll make lots of money, but in between they're making nothing.

A year from now the consoles will really have come into their own. Software patches will have cleared up a lot of launch issues, people who had hardware issues will have gotten their new machines and the glitches of this month will have been largely forgotten. All the indie/arcade games will be rolling in, and we'll have solid sales figures for everybody. I'm fascinated to see how it plays out.

[quote user="NameLipsKarem"]

And they don't have a subscription service. 

[/quote]Yea, about that...

Did they add it? I thought they were all proud that the online stuff was free and were flaming x1 for its paywall.

[quote user="NameLipsKarem"]

The business model for lots of hardware devices these days is to lose money on the device itself, and make all the profit off the subscriptions, warranties, and software.

Microsoft is making money off xbox live gold and games. Sony priced their hardware -- which is arguably better than the x1s hardware -- $100 cheaper. And they don't have a subscription service. They're REALLY banking on people buying their games to make up the difference.

Considering the hooplah over the x1 "hiding features behind a paywall" I'm betting sony is a bit annoyed that the sales were so close. MS now has a million people paying $60/year -- which isn't chump change. Sony would LOVE that kind of steady, predictable revenue stream. Instead they're going to have a feast-or-famine stream -- when a blockbuster game comes out, they'll make lots of money, but in between they're making nothing.

A year from now the consoles will really have come into their own. Software patches will have cleared up a lot of launch issues, people who had hardware issues will have gotten their new machines and the glitches of this month will have been largely forgotten. All the indie/arcade games will be rolling in, and we'll have solid sales figures for everybody. I'm fascinated to see how it plays out.

[/quote]

The Playstation 4 requires PSN+ in order to play games online, just like Xbox Live.

Didn't read the article but assume that's including a write-off of the Engineering and Development costs

Just read the article - no facts just 'wild @ss guesses'

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