MS almost doubles it's losses with Xbox (merged)

[ScorpionX]

http://money.cnn.com/2003/01/31/technology/bc.tech.microsoft.reut/



Microsoft's Home and Entertainment segment, which includes the Xbox, games for personal computers and the company's TV products, posted an operating loss of $348 million in the quarter on revenue of $1.28 billion. A year earlier it had revenue of $833 million and a loss of $180 million.

The company loses money on each Xbox it sells, with some analysts pegging the shortfall at more than $100 per $199 console, meaning that strong sales for the platform actually increase its losses.



Bad news for Xbox
:mad:

[thatroger]

Most people dont' realize this part. Once the Xbox gets a large installed base they start making their money off the games. Less and less xboxs are sold and more games are sold, increasing prrofits.

[Kraft]

Originally posted by thatroger
Most people dont' realize this part. Once the Xbox gets a large installed base they start making their money off the games. Less and less xboxs are sold and more games are sold, increasing prrofits.

I'm glad some people understand this fact. Also, even though MS profit is down they still made 1.97 BILLION dollars. That't not too bad considering the amount of money a lot of other companies are losing, you know, with us being in the middle of a recession and all.

[carlbme]

Originally posted by Kraft-XBA
I'm glad some people understand this fact. Also, even though MS profit is down they still made 1.97 BILLION dollars. That't not too bad considering the amount of money a lot of other companies are losing, you know, with us being in the middle of a recession and all.


AOL comes to mind coming in with a loss of 99 Billion.

[hiter101]

this is pretty much old news

and btw MS is in this for the long haul so dont worry it wont pull a sega on u ;)

[Qbas]

Originally posted by hiter101
this is pretty much old news

and btw MS is in this for the long haul so dont worry it wont pull a sega on u ;)
Thanks to MS's Windows OS and Office packages. ;)

[Evil_Dr_Beefy]

C'mon guys..it's not as bad as you think..348 million dollars is pocketchange for a muti -billion dollar company..i guess the Ps2 fanboys have something to talk about now......but it's cool microsoft knew about the losses before hand.......

[Frostberg]

Lets not forget the point that with every Xbox MS sells that they lose $160 or so...so in effect if they sell a 4 or a billion xboxes they will STILL be losing money...

So obviously they are prepared for it...

[clientkiller]

there is no real need to worry infact it shows that microsoft are making alot of money on the xbox because if you think about it this includes all the other things microsoft are doing including the tv stuff and thats where aol have lost alot of their money so i reakon thats where micosoft lost alot of theirs


although microsoft lose money on the console they make money on the dvd remote control. the xbox pads which in england are £5 more expensive then ps2 ones and also they will be making alot of money on the games. i think they are making around £5 - £10 per game cos a game serious sam was only £20 on the pc but its £35 for the xbox so i think they are making alot of money that way.

they also own alot of developers are they making money or losing it tho?

[Casper]

There has been speculation that Microsoft will NEVER make a penny off the Microsoft Xbox, and that they are just planting themselves in the market. Microsoft will worry about making money on the 2nd generation console, it sure looks like that:

Microsoft's Home and Entertainment segment, which includes the Xbox, PC games and the company's TV products, posted an operating loss of $348 million in the quarter on revenue of $1.28 billion. A year earlier it had a loss of $180 million on revenue of $833 million.


In a quarterly report with the SEC filed Friday, Microsoft said it posted operating income of $1.97 billion in the December-ended quarter in its Windows-centered business unit on revenue of $2.44 billion. That was down from income of $2.11 billion and revenue of $2.68 billion in the year-earlier period.

Read more about it here (http://zdnet.com.com/2100-1104-983083.html)

[Whisper]

so xbox1 is doomed.

[J Dub]

I don't understand what all this crap means.


Microsoft's Home and Entertainment segment, which includes the Xbox, PC games and the company's TV products, posted an operating loss of $348 million in the quarter on revenue of $1.28 billion.

Does that mean that they lost $348 million but made $1.28 billion? Therefore they made more than they lost.....right? Confused... :confused:

[Qbas]

MS allways gets their money back from Windows, MS Office products etc.

[HaloMasterVI]

Originally posted by Scorpion}{
http://money.cnn.com/2003/01/31/technology/bc.tech.microsoft.reut/

Don't forget, cnn is in direct competition with MS. CNN Hates MS.

Bill is in it for the long term.




Bad news for Xbox
:mad:

[Slacker]

this is the stupidest thread!!!........Really you have to be an idiot to think thats bad news for Xbox.....348 million , out of 5 BILLION!! just for the dumb people it takes one thousand million to make one billion! and Microsoft has Set aside 5 BILLION for Xbox, please don't post Anti-Microsoft propaganda on an Xbox board and try to use your head .........no offense to anyone I'm just sick of this thread, this must be 100th time it's been posted

[Kraft]

Originally posted by Slacker
this is the stupidest thread!!!........

A little off topic, but 'stupidest' isn't a word. I guess that makes your post the 'dumbest' post in the 'stupidest' thread. Just because ms set that much aside doesn't mean that we want to see them burn through it all. Who is going to want to buy an xbox 2 if they see that MS is still losing money off the first one?

[Casper]

Originally posted by Slacker
this is the stupidest thread!!!........Really you have to be an idiot to think thats bad news for Xbox.....348 million , out of 5 BILLION!! just for the dumb people it takes one thousand million to make one billion! and Microsoft has Set aside 5 BILLION for Xbox, please don't post Anti-Microsoft propaganda on an Xbox board and try to use your head .........no offense to anyone I'm just sick of this thread, this must be 100th time it's been posted

:rolleyes: :rolleyes:

Wow, you mean to tell me that one thousand million makes one billion....wow, you should be a dam financial analyst for Enron...look, this isn't anti--MS propoganda material, you do realize that if they set it aside (which by reading the article more in depth, some of it was borrowed) does not mean that they can go and make stupid moves that are dumber than your post. It's just showing that they despite the better # in sales, it's actually hurting them on console sales because they are losing per Xbox...now, if you have a problem with that...then just walk on by....

Good day sir!

[TheCovenant]

isnt this like really old news?

well anyway, microsoft announced that they would double down and reduce their losses, and actually turn their losses into profit. simple.

just becuase they did not reach what they wanted, doesnt mean it isnt a lot....

[ScorpionX]

Watching the figures, it comes as no great surprise that nVidia might be backing away from future deals. Microsoft is losing money hand over fist in its Home and Entertainment division which is responsible for the Xbox and component suppliers are facing the pinch as well. nVidia itself is in legal arbitration with Microsoft over the cost of components.

Over at SiliconValley.com, nVidia CEO Jen-Hsun Huang sounded a very cautious note, "we would be delighted to work with Microsoft on the next Xbox, but we are a company with many opportunities." Which sounds to us like he really isn't interested in playing ball.


http://www.theinquirer.net/?article=7579



Nvidia doesn't seem to confident in Xbox 2
:confused:

[Kraft]

Originally posted by Scorpion}{
http://www.theinquirer.net/?article=7579



Nvidia doesn't seem to confident in Xbox 2
:confused:

This is due to the fact that MS is pretty much telling them what they are going to do otherwise they are going with ATI. They are being ruthless with developing their gaming systems.

[ARONO129]

Originally posted by Kraft-XBA
A little off topic, but 'stupidest' isn't a word. I guess that makes your post the 'dumbest' post in the 'stupidest' thread. Just because ms set that much aside doesn't mean that we want to see them burn through it all. Who is going to want to buy an xbox 2 if they see that MS is still losing money off the first one?

Thank goodness he didn't say retarded. Whew;)

[ShannonX]

Originally posted by J Dub
I don't understand what all this crap means.



Does that mean that they lost $348 million but made $1.28 billion? Therefore they made more than they lost.....right? Confused... :confused:


just means that even though they pulled in $1.28 billion in revenue they actually had about $1.6 billion in expenses, give or take, hence the loss of 348 million bucks.

[Slacker]

Ahhhhhhh....... the good ol post Nazi's come around again to make themselves feel better,

My point was this has been said OVER AND OVER again , this is getting to be a "GTA III" thread IMO and I find that threads like this one only bring Doom and Gloom, if your worried about Xbox failing Sell your Xbox buy a PS2


As far as the attacks on my Post I was speaking "XBA" it's a language filled with words like "stupidest" "Retarded" "***" ect..
I just wanted people to understand what I was talking about , considering the average Emotional and educational level of people on these boards is around 13 , I find myself Dumbing down to thier level ,

[FuNkY mOnK]

Originally posted by Slacker
people on these boards is around 13 , I find myself Dumbing down to thier level ,
I Know the feeling, sometimes i feel like Jack Nicholson in One Flew Over The CUCKOO'S nest.

[ARONO129]

Originally posted by Slacker
Ahhhhhhh....... the good ol post Nazi's come around again to make themselves feel better,

My point was this has been said OVER AND OVER again , this is getting to be a "GTA III" thread IMO and I find that threads like this one only bring Doom and Gloom, if your worried about Xbox failing Sell your Xbox buy a PS2


As far as the attacks on my Post I was speaking "XBA" it's a language filled with words like "stupidest" "Retarded" "***" ect..
I just wanted people to understand what I was talking about , considering the average Emotional and educational level of people on these boards is around 13 , I find myself Dumbing down to thier level ,

Good point. I should have "dumbed down" to another member's level before I got offended in another thread. Live & learn.:rolleyes:

[jabrre]

Personally, I am not worried at all about Microsoft's XBOX. IMHO, the XBOX is the best console of all and as long as they keep releasing quality software, then I will be a customer for life. This includes the XBOX Next.

Why worry about all this when the present is what matters now. Right now, the XBOX is where its at in the gaming world and I do not see that changing at all for years to come.

Life is short. Relax and play more Halo. :cool: