"X-Box Doubles Its Losses"

**Future Starlocke** · 02-03-2003, 07:26 PM

According to a recent Reuters report, Microsoft's losses on the Xbox almost doubled in the final quarter of last year, contributing to an overall operating loss of some $348 million for Microsoft's home and entertainment division. Last year the division, which incorporates Microsoft's PC games and TV products, posted a loss of just $180 million.
What this doesn't mean, however, is that the Xbox is performing badly at retail. Since Microsoft loses an estimated $100 on every Xbox console that's sold, the massive losses made in December suggest that the console sold extremely well during the Christmas holiday season, increasing the number of potential buyers for any games released subsequently.

The quarterly report with the US Securities and Exchange Commission also showed that Microsoft's overall operating income for the quarter was $1.97 billion as opposed to $2.11 billion the previous year.

**CruelAngel** · 02-03-2003, 07:28 PM

Thats funny... Cuz according to my sources they arent the only ones that suck.. Sims online seems to have realy bombed out.. selling way less than expected.

**Michael Bluth** · 02-03-2003, 08:09 PM

Well yeah, they lose money with each system sold, and as they sell more systems, they lose more money.

**JackieChanIsGOD** · 02-03-2003, 08:29 PM

Originally posted by CruelAngel
Thats funny... Cuz according to my sources they arent the only ones that suck.. Sims online seems to have realy bombed out.. selling way less than expected.

i'm guessing you didn't read FS's post..
It's ok... *pats on head*

**VeNoM** · 02-03-2003, 08:50 PM

Yeah. More systems sold = money lost
More games sold = money made back
The attach rate on Xbox = very good
Microsoft = very rich

**Future Starlocke** · 02-03-2003, 09:09 PM

I don't think there's enough software being sold to cover almost $350,000,000... especially if that's their total LOSSES, which I'm led to believe means after games or whatever other revenue that could have been made.

**VeNoM** · 02-03-2003, 09:16 PM

Originally posted by Future Starlocke
I don't think there's enough software being sold to cover almost $350,000,000... especially if that's their total LOSSES, which I'm led to believe means after games or whatever other revenue that could have been made.

Did you read the quote? Their losses is not just Xbox. They have Web TV, tablet PC's, PC games, and more. Not all 350 million was lost with Xbox. It says it right in the article.

Originally posted by Future Starlocke
loss of some $348 million for Microsoft's home and entertainment division. Last year the division, which incorporates Microsoft's PC games and TV products, posted a loss of just $180 million.

Yeah.

The attach rate is something like 4 games per Xbox. That makes up the 100$ lost right there.

**Mike** · 02-03-2003, 10:25 PM

SIMS online is garbage....microsoft and xbox rule

**HellSpawn** · 02-03-2003, 10:34 PM

Yeah well, when you got a thousand dollars, throwing away 10 bucks wont hert ya.

**PremierAudio** · 02-04-2003, 02:29 AM

I think the point here is that they ARE losing money. Unless you have been in a dark void for the past years then you should know already that microsoft is so damn rich that losing that much money doesn't matter at all to them. But the fact is that they ARE losing money. Dont bring up extremely obvious facts.

**sagara0510** · 02-04-2003, 03:17 AM

VeNoM did YOU read the quote?

Originally posted by Future Starlocke
According to a recent Reuters report, Microsoft's losses on the xbox almost doubled in the final quarter of last year, contributing to an overall operating loss of some $348 million for Microsoft's home and entertainment division.

need i say more? i think the quote says it all

**VeNoM** · 02-04-2003, 03:31 AM

Originally posted by sagara0510
VeNoM did YOU read the quote?

Yep.

Originally posted by Future Starlocke
loss of some $348 million for Microsoft's home and entertainment division. Last year the division , which incorporates Microsoft's PC games and TV products, posted a loss of just $180 million.

contributing on dictionary.com

adj : tending to bring about; being partly responsible for;

Xbox contributed to the overalloperating loss of some $348 million for Microsoft's home and entertainment division.

**sagara0510** · 02-04-2003, 03:47 AM

*sigh*
ok let me try and narrow down the part i was trying to emphasise

Originally posted by Future Starlocke
According to a recent Reuters report, Microsoft's losses on the Xbox almost doubled in the final quarter of last year

of course the xbox contributed to the overall loses of Microsofts entertainment division, but the quote specifically says that the xbox losses have almost DOUBLED.

**Prince** · 02-04-2003, 06:02 AM

Whats the point of this thread? to bash Xbox? All the hardware makers loose money in hardware and make it up in software. Why wouldn't the Xbox losses have doubled? They lose 100$ or so on every console. The more the console sells the more money they lose. Simple as that.

And sagara0510, the Xbox's losses have doubled from before, because its been selling more. They did not loose 348$ million on the Xbox alone, and they did not loose 180$ million on the Xbox alone before. It's the combined sales of Microsofts entertainment division, Xbox only contributed to that.

**sagara0510** · 02-04-2003, 07:25 AM

*sigh*
wtf is wrong with all you people
can't you read or something?
i KNOW the $348 mill is the total loss of M$'s entertainment division. i never said the xbox made a loss of $348 mill. noone said that. i am simply stating that the the xbox losses have doubled in that period which is what this thread is simply about.

i am fully aware that they are losing more because they are selling more. *sigh*

forget this

Freeman_JI · 02-04-2003, 07:51 AM

Thanks for the GOOD news Future Starlocke, it is well known that the xbox looses out big time in hardware because of the loose on each system. This of course means that the xbox is selling well duh!

Nintendo would kill for some sales like this (cube)

Any way Future Starlocke nice try but don't try to insult our intelligence.

Phanta edit

**Prince** · 02-04-2003, 07:53 AM

Fair enough. I don't get how this is even threadworthy though. Captain obvious to the rescue. yay.

**smellslikenintendospirit** · 02-04-2003, 03:45 PM

This is thread-worthy because:

a) It gives us an idea of Microsoft's losses

b) It implies that Xbox is a major part of the total losses

c) It implies that Xbox sold well during the Holiday Season.

THEREFORE, it is REDUNDANT to say:

a) Microsoft loses a lot of money

b) The loses are because of xbox

c) That's only because xbox sold more

It is also pointless to look up "contributed" in the dictionary and highlight "partly". The news clearly emphasizes that Xbox's losses account for a major part of the loss, the keywords being "major part".

My personal contribution to this thread:

http://www.nintendo.com/corp/financial.html

The above link gives will assist us in comparing Nintendo's financial status with Microsoft's. It should also help us logically arrive at further conclusions.

**Future Starlocke** · 02-04-2003, 04:12 PM

Thanks for that link, Smells...

But also look at this: Microsoft loses $100 per console... Gamecube loses $20. Four games must be sold by Microsoft in order to compensate the loss and barely turn a profit for ONE console, wheras Gamecube requires perhaps one or two (depending on 1st or Third Party).

Nintendo's doing better business by far... like I so often have to point out, "Fine and dandy you sold a million X-Boxes... but you're still 300 million in the hole... what's it matter?"

**Michael Bluth** · 02-04-2003, 06:51 PM

But 4.7 games are sold per XBox sold, lessening to hit.

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