The X1 has lost Microsoft 400 million

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kilenem

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Jul 21, 2013
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I hope that Microsoft can turn the Xbox division around and these numbers are just from the X1 development. Although I'm not sure if if the Xbox division has made a profit. I liked the 360, I hope the X1 eventually mimic's the good experiences I enjoyed with my 360.
 

Strelok

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Might help to post some articles to back it up, and fix your title, it is Microsoft that lost the money.

http://www.dualshockers.com/2014/08/08/xbox-one-lost-microsoft-400000000-during-last-fiscal-year/
http://www.pcworld.com/article/2456906/as-hardware-kills-microsoft-profits-ceo-nadella-seeks-comfort-in-software.html
http://n4g.com/news/1563679/xbox-one-lost-about-400-000-000-in-gross-margins-for-microsoft-during-latest-fiscal-year

Had a feeling they would be the first to bow out of consoles, who am I kidding, I couldn't wait for it. Though I didn't think we would start seeing the major signs this fast.
 

Rozalia1

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I don't see how it makes sense for Microsoft to continue if the Xbone proves to be a failure after the rest of their failures, which some would say it is already but they have years to turn it around.

Honestly nothing would be lost if they went to me, Microsoft just do not (to me) provide the number, quality, or variance in exclusives that Sony and Nintendo do (especially as whenever they actually have anything interesting like say Last Remnant it releases on PC also).

Could harm the market if a WCW type deal goes on where people's interest fades with there no longer their being this "big war" urging everything forward. Though I suppose with their exit another party could try to muscle in, but I'm sure after Microsoft's attempts a lot of companies may not want to spend billions fighting a pointless "war" with Sony/Nintendo.
 

Zhukov

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They goofed and now they're taking a financial beating for it.

Isn't that how it's supposed to work? Surely it's better than them goofing and getting rewarded for it.

I certainly wouldn't shed any tears if Microsoft dropped out altogether. That leaves the Playstation and Nintendo offerings. One console to buy so I can play the games I want and one to safely ignore because it doesn't have any games I want. Sounds good to me.

Although I suppose such an event could have unforeseen consequences. For example, it might adversely affect the PC, since Xbox games tend to get released on PC as a matter of course. Possibly? Eh, I dunno, I'm neither an economist nor even an industry watcher.
 

Tayh

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Now, I'm not really into consoles, but are you guys actually encouraging a situation where Sony has the monopoly on Big Console Games?
Do you not know where monopolies lead?
Surely some competition is good to keep the companies on their toes.
 

Rozalia1

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Tayh said:
Now, I'm not really into consoles, but are you guys actually encouraging a situation where Sony has the monopoly on Big Console Games?
Do you not know where monopolies lead?
Surely some competition is good to keep the companies on their toes.
*Points at PS2, widely considered to be the best console of all time that obliterated all competition*
*Further points at Nintendo's handhelds as relevant examples of dominance not being the bad thing people think it always is*

Besides Nintendo will still exist, and Sony would be fools to suddenly stop pumping out exclusives or any such things they do now. They do not have a product that people can't go elsewhere for after all.
 

Apl_J

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Tayh said:
Now, I'm not really into consoles, but are you guys actually encouraging a situation where Sony has the monopoly on Big Console Games?
Do you not know where monopolies lead?
Surely some competition is good to keep the companies on their toes.
I was thinking the same thing. After all, (I hope) we all remember the 'deal with it' shenanigans Sony tried to pull with the PS3 launch. Not quite as bad as the X1, sure, but still pretty bad. And aside from the monopoly, the X1 bombing would definitely be felt for a while. It would be like if the Avengers bombed; the superhero movie business would've been shattered. No idea how exactly Sony and Nintendo would react to Microsoft pulling out, but I'm willing to bet they'd play it safe and boring for a while.
 

Ten Foot Bunny

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Microsoft has also been REALLY stupid when it comes to game variety. While every other platform diversified their game portfolios, MS remained (and still remains) focused on dull military shooters. The 360 turned into the most horrible choice of platform if you're not a fan of CoD and all of its knockoffs.

I had the original Xbox and also the 360, but never owned a PS2 or PS3. In the last 13 years, the Xbox went from having a bunch of enjoyable titles to being little more than a U.S.-military-school primer. I eventually became downright jealous of PS3 owners who got to play games that had depth, flair, and artistic merit. Since the Xbone appears to be following in the footsteps of its predecessor's lack of variety, my next console will definitely be the PS4. If Microsoft wants the Xbox brand to survive, they really need to start courting gamers who aren't sugar-rushed 13-year-olds who won't play any game with more complexity than "if it moves, kill it."
 

gorfias

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Ultratwinkie said:
Not to mention that now with the advent of mobile and PC, they missed out on 2 markets while trying to outspend others in a locked market.
I still have Windows at home on my PCs but as soon as gaming companies make it so that I can play state of the art games, well, on other platforms (Ubunto) Windows is history. Ubunto has the apps I need, mostly for free! But as long as that isn't the case, I'll stick with Windows.

This may happen sooner rather than later. Steam has come out with some games for Linux. Example, Metro 2033 Last Light. And Windows 8 is a nightmare. Windows 2007 is old now, believe it or not and Windows 8 a disaster. What happens when they stop supporting 7?

They also hopelessly botched it on Games for Live. I had Bioshock 2 for Windows live. Without explanation or warning, it just stopped working. No longer supported on their flagship OS Win 7 64 bit.

I've since repurchased almost all I had on Windows Live and am avoiding it like the plague.

Too bad. I like competition. Keeps Sony and Nintendo honest. Example: the PS4 is better in having to contend with XB1.

Ten Foot Bunny said:
Microsoft has also been REALLY stupid when it comes to game diversity. While every other platform diversified their game portfolios, MS remained (and still remains) focused on dull military shooters. The 360 turned into the most horrible choice of platform if you're not a fan of CoD and all of its knockoffs.

I had the original Xbox and also the 360, but never owned a PS2 or PS3. In the last 13 years, the Xbox went from having a bunch of enjoyable titles to being little more than a U.S. military school primer. I eventually became downright jealous of PS3-owners who got to play games that had depth, flair, and artistic merit. Since the Xbone appears to be following in the footsteps of its predecessor's lack of variety, my next console will definitely be the PS4. If Microsoft wants the Xbox brand to survive, they really need to start courting gamers who aren't sugar-rushed 13-year-olds who won't play any game if it has more of a scope than "if it moves, kill it."
Had the Xbox and 360 as well. I will write, the XB1 tempts me in that Forza 5 is likely the best console racer there is. The Alan Wake games are good too and can't be played on the Sony platforms. Still, my 360 died after 6 years (April 2006 to December 2012, RIP) and I didn't replace it. To date, I have 2 PS3s, 2 PS2s, a PS4 and Vita which does, among other things, remote play (and a family with which I have to share, hence the duplicates). For $50 a year, I get to do the live stuff on PS4 that you get on the XB1, but also, a ton of great games. I can't keep up. If anything, the danger to gaming in the next 5 years is the glut.

If you haven't played PS3, I recommend getting one, even used, cheap with warranty and play some of what you missed last gen. It is still on par with the gen 8 experience (which threatens the viability of the new systems as it is still that good). But so far, the PS4 is a great, solid, whisper quiet, powerful machine. If developers can push the envelope with it, I expect great things.
 

AzrealMaximillion

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The Xbox division has always lost MS money. The Original Xbox lost them 1 billion USD. The 360 profited for a couple years then proceeded to lose MS money. Now this.

Between the lack of variety when it comes to titles, the forcing of an unneeded Kinect, and the fact that lately most of their major X1 exclusives are being ported to the PC so quickly I don't know how anyone at this point could justify being an early adopter for the console.
 

Savagezion

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Apl_J said:
Tayh said:
Now, I'm not really into consoles, but are you guys actually encouraging a situation where Sony has the monopoly on Big Console Games?
Do you not know where monopolies lead?
Surely some competition is good to keep the companies on their toes.
I was thinking the same thing. After all, (I hope) we all remember the 'deal with it' shenanigans Sony tried to pull with the PS3 launch. Not quite as bad as the X1, sure, but still pretty bad. And aside from the monopoly, the X1 bombing would definitely be felt for a while. It would be like if the Avengers bombed; the superhero movie business would've been shattered. No idea how exactly Sony and Nintendo would react to Microsoft pulling out, but I'm willing to bet they'd play it safe and boring for a while.
Guys, there is no monopoly. Nintendo is still sitting there and PC being a modern home device makes it every bit a contender. If you spend $800 on a junk PC that is your business, but seriously gaming rigs can be built for that or less and are multi-functional in the home.

As for the PS3 release, it was way better than 'not quite as bad' as Xbox One's launch. Basically, it was just expensive and had no games but did offer backwards compatibility for being able to play games. I am not saying that makes it great, but it was nowhere near as bad as people made it out to be. I called that PS3 would overtake 360 when they launched and it did. (And for all the shit I had to take for it, you bet I will spout that out when I can. "Called it" I didn't guess, I felt vindicated because I understood their strategy the minute they said "we're doing away with B/C for a price cut." That was the minute I knew they would take last gen and I bought the 80GB fatboy model with B/C which is still alive and well today.) We all know PS4 will overtake Xbox One this time, because it isn't even close.

I think the patch that removed OS's hurt them more as it also lead to the hacking of PSN which hurt. That was a messy blunder.

I am not rooting for Microsoft on this one. I am done with them. I haven't liked anything they did since the original Xbox and they pissed me off with it when the 360 launched and they gave me the middle finger and said "no support for you". They have consistently shit on consumers in the gaming industry and favored publishers since they stepped in the game. Good riddance. Their business practices don't even offer competition to me, they offer another box for publishers. Let's not forget the Steambox (I know) is still yet to make an entrance. If it is marketed right, it could easily fill that gap for all those crazy people out there afraid gaming on a PC will mutate them into a neckbeard or whatever jacked up logic they use. Sorry, but I hate Microsoft. (But I can't quit using Windows, speaking of monopolies.)

As for the games, devs compete - not consoles. (Another benefit to PCs if this happened)

EDIT:
Gorfias said:
Ultratwinkie said:
Not to mention that now with the advent of mobile and PC, they missed out on 2 markets while trying to outspend others in a locked market.
I still have Windows at home on my PCs but as soon as gaming companies make it so that I can play state of the art games, well, on other platforms (Ubunto) Windows is history. Ubunto has the apps I need, mostly for free! But as long as that isn't the case, I'll stick with Windows.
True dat.
 

Maximum Bert

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What how is this news? I dont think the xbox division has ever been profitable maybe they made some money in places but overall it has never proved profitable which is why the shareholders are by and large so anxious to be rid of it. Microsoft literally bought themselves into the market there are not many companies who could have done what they did if Sony or Nintendo tried their strategy (strategy = throw money at it until it sticks) they would have bowed out ages ago.

Google could do what MS did but theres not many others and ultimately it hasnt payed off for them both Nintendo and Sony have had success in the market and then gone and messed up but MS never has. I personally bought an Xbox and 360 but after the frankly ridiculous failure rate of the 360 and the bs they tried to pull with the Xbox One I am out on their latest console unless they pull a miracle like FFVII remake exclusive then I will get the console and that one game.

Then again I dont want it to just be Sony and Nintendo I despise MS because of Windows and the way they try and lock everything down but Sony and Nintendo need competition and atm Nintendo have distanced themselves in such a way that many do not see them as competition for Sony or MS so if MS went that would leave Sony with a huge chunk of the market which is never good. All three of them have shown they cant be trusted when they think they have the market by the balls and thankfully all three so far have been forced to eat humble pie for their arrogance.
 

shrekfan246

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Zhukov said:
For example, it might adversely affect the PC, since Xbox games tend to get released on PC as a matter of course. Possibly? Eh, I dunno, I'm neither an economist nor even an industry watcher.
These days the majority of games tend to be multi-platform, and it seems an equal number of Xbox and Playstation games will be exclusive because the companies need some reason to get people to jump on board with the new systems.

It's a fair assumption, since for the longest time the only real worthwhile exclusives on the Xbox brand were Halo and Gears of War, because Microsoft knew fuck-all what to do with the other games they had like Crackdown or Fable, but the multiplayer shooter craze brought on by Call of Duty: Modern Warfare was strongest on Xbox as well. And it does strike me as a bit silly that things like Dead Rising 3 are being brought over to PC now.

I wonder where the console market would go if it returned to being a two-team showdown, like the Sega v. Nintendo rivalry of olde. I can't really hope to predict that either, though.
 

Shoggoth2588

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I don't own or want an Xbone...but I want to want one and unlike the Vita I want to LIKE them too (the Vita I want-to-want and already look at somewhat favorably).

Say what you will about the age we live in but when it comes to the gaming industry everybody SHOULD be a winner. To a degree anyway. The original Xbox has games that have been dormant last gen that Microsoft could be using like High Road to Revenge (the Crimson Skies game) and, Otogi. Not to mention Rare probably being freed up now that the Kinect-2.0 flopped as hard as it did. The Xbone can't Nintendo as hard as Nintendo but if they were to come out and say, "Alright, exclusive to Xbox One and Nothing else we're going to give you a new Viva Pinata, Banjo-Threeie, Conker's Even Worse Fur Day and, a remake of Break Down," My attention would be grabbed. Crackdown, Sunset Overdrive and, Dead Rising 3 have my eyebrows a bit more elevated than they usually are...but of course the big issue is how Microsoft made it clear that, even though they've turned more heels than some kind of dancer, they can (at any time and for any reason), go back to the more bass-ackward way the Xbone was meant to be what with its always on, ID check, etc...
 

NuclearKangaroo

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Tayh said:
Now, I'm not really into consoles, but are you guys actually encouraging a situation where Sony has the monopoly on Big Console Games?
Do you not know where monopolies lead?
Surely some competition is good to keep the companies on their toes.
theres still nintendo and theres still PC, no monopoly
 

Strelok

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Dec 22, 2012
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Tayh said:
Now, I'm not really into consoles, but are you guys actually encouraging a situation where Sony has the monopoly on Big Console Games?
Do you not know where monopolies lead?
Surely some competition is good to keep the companies on their toes.
It's the beginning of the end of consoles, no one is encouraging anything. A monopoly on a sinking ship is not a monopoly at all, and not just because when the doomed ship lists the board will tilt and all the pieces fly off.
 

Johnny Novgorod

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Tayh said:
Now, I'm not really into consoles, but are you guys actually encouraging a situation where Sony has the monopoly on Big Console Games?
Do you not know where monopolies lead?
Another PS2? Sign me up.
 

DirgeNovak

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Jul 23, 2008
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Tayh said:
Now, I'm not really into consoles, but are you guys actually encouraging a situation where Sony has the monopoly on Big Console Games?
Do you not know where monopolies lead?
Surely some competition is good to keep the companies on their toes.
Sure, I don't want a monopoly, that would be bad. But I still want the Xbone to fail to some extent. Maybe not Dreamcast-fail, but at least Gamecube-fail. Microsoft's backpedalling on the most egregious "features" of the Xbone (used game policy, 24h online check-in, mandatory Kinect...) doesn't mean I've forgotten how morally bankrupt and anti-consumer Microsoft has been, and they still need to pay for that.