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Re: Death of the Xbox?
Posted By: Kanen Faud'r <eli@nuprometheus.com>Date: 5/21/02 3:12 a.m.

In Response To: Re: Death of the Xbox? (ferrex)

Rex is right that the specifics of this article are a bit dubious. On the other hand I believe the basic point that the XBox is unlikely to ever turn a profit is probably correct.

Feel free to do your own math, but here are some rough figures (that seem mighty generous to me.)

Loss per XBox console sold: ($85)
Profit per first party game sold: $20
Profit per hardware accesory sold: $5
Profit per third party game sold: $5

Add up the contents of your shelf and see how they're doing so far.

All this is pretty moot if Microsoft thinks it's important to stay in the marketplace, however. They could bleed this tiny amount for hundreds of years before they'd notice. It's also true that they've taken the lead on aggressive hardware pricing. Rumor has it that Sony is going to drop the recommended game price to $40 this week, which will be painful to counter...


Message Index




Replies:

Death of the Xbox?FunkDaddy 5/20/02 4:34 p.m.
     Re: Death of the Xbox?PCDestroyer 5/20/02 4:46 p.m.
           Re: Death of the Xbox?Surrepticius 5/20/02 4:58 p.m.
                 Death of the Xbox??...My @$$Mutti 5/20/02 6:48 p.m.
                       Re: Death of the Xbox??...My @$$Mr. Bobo 5/20/02 8:07 p.m.
     Re: Death of the Xbox?ferrex 5/20/02 6:03 p.m.
           Hurrah!Kellen Squire 5/20/02 11:00 p.m.
           Re: Death of the Xbox?Kanen Faud'r 5/21/02 3:12 a.m.
                 Re: Death of the Xbox?ferrex 5/21/02 1:24 p.m.
                       Re: Death of the Xbox?Kanen Faud'r 5/21/02 2:12 p.m.
                             What about the profits from...Ulf 5/21/02 3:08 p.m.
                       Gross vs. ProfitNarcogen 5/21/02 10:39 p.m.
                             Re: Hard DriveNthDegree256 5/21/02 11:12 p.m.
                                   Re: Hard DriveNthDegree256 5/21/02 11:13 p.m.
                                   hard drive vs. memory cardNarcogen 5/22/02 1:38 a.m.
                                         Re: hard drive vs. memory cardMark Levin 5/22/02 1:46 a.m.
                                               nice feature, just not essentialNarcogen 5/22/02 4:39 a.m.
                                         Re: hard drive vs. memory cardMiguel Chavez 5/22/02 1:51 a.m.
                                               Re: hard drive vs. memory cardpoena.dare #CP# 5/22/02 2:23 a.m.
                                                     Re: hard drive vs. memory cardMark Levin 5/22/02 3:21 a.m.
                                                           DVD Consortium ChargesNarcogen 5/22/02 4:48 a.m.
                                                                 Re: DVD Consortium ChargesLouis Wu 5/22/02 8:30 a.m.
                                                                       Re: DVD Consortium ChargesNarcogen 5/23/02 1:33 a.m.
                                                                             Re: DVD Consortium ChargesMark Levin 5/23/02 2:15 a.m.
                                                                                   Re: DVD Consortium ChargesNarcogen 5/23/02 3:05 a.m.
                                                                                         Re: DVD Consortium ChargesMark Levin 5/23/02 3:09 a.m.
                                                                                               Re: DVD Consortium ChargesNarcogen 5/24/02 4:14 a.m.
                                                     xbox as music playerNarcogen 5/22/02 4:45 a.m.
                                               The Console CaveNarcogen 5/22/02 4:42 a.m.
                                         Re: hard drive vs. memory cardSpudBoy 5/22/02 1:52 a.m.
                                               PGR ghosts and Myth FilmzNarcogen 5/22/02 5:04 a.m.
                             Re: Gross vs. Profitvector40 5/21/02 11:28 p.m.
                                   Grosse Profit PointeNarcogen 5/22/02 1:44 a.m.
                             Re: Gross vs. ProfitMiguel Chavez 5/22/02 1:22 a.m.
                                   Profit vs. RevenueNarcogen 5/22/02 1:52 a.m.
           Doomsayers vs MS Kool-AidNarcogen 5/21/02 9:38 p.m.
                 Re: Doomsayers vs MS Kool-AidKellen Squire 5/21/02 10:57 p.m.
                       Kool Aid vs FUDNarcogen 5/22/02 4:18 a.m.
                             *blink*Kellen Squire 5/22/02 6:29 p.m.
                                   Well, uh banshee "challenge" *NM*Black_Jackal 5/22/02 6:47 p.m.
                                         WHAT THE !@#$!Black_Jackal 5/22/02 6:51 p.m.
                                               Re: WHAT THE !@#$!Narcogen 5/23/02 2:40 a.m.
                                   SUPERFUD! :)Narcogen 5/23/02 2:38 a.m.
                                         Dratness!Kellen Squire 5/23/02 8:30 a.m.
                                         Re: SUPERFUD! :)Kellen Squire 5/23/02 9:43 a.m.
                                               Good Grief, this is great. *NM*vector40 5/23/02 9:25 p.m.
                                               Re: SUPERFUD! :)Narcogen 5/24/02 4:09 a.m.
                                         Re: SUPERFUD IS FINALLY REPLIED TOKellen Squire 5/24/02 12:23 a.m.
                                               Jesus.Zapf Dingbats 5/24/02 12:58 a.m.
                                                     Re: Jesus.Kellen Squire 5/24/02 8:24 a.m.
                 Re: Doomsayers vs MS Kool-AidMiguel Chavez 5/22/02 1:33 a.m.
                       Re: Doomsayers vs MS Kool-AidNarcogen 5/22/02 4:54 a.m.
     Re: Death of the Xbox?Cunbelin The Longwinded 5/23/02 5:40 a.m.



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