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[Dragonborn]

XBO has more momentum from the holidays though being the one who won 2 months in a row. (Most likely)

Going by that logic Sony should have won Nov. And Dec. Since they had won for ten months straight

The X1 did as well as it did because of the massive price cut and bundles. Rven with at that, the PS4 still sold really damn well. I just don't see how the X1 doesn't crash in Jan. But I could be way off

 

[Boogdud]

And like any good football team that was behind but managed to gain some momentum, MS is wisely punting on third down.

If it was a joke, it was brilliant. Though probably lost on a lot of people here.

 

[Dr. Kaos]

They can always release versions without [bluray and hdd]. Both MS and Sony. They'd pretty much just be precursours for the all-digital boxes both will likely do with their next-gen systems anyway.

A version without bluray, for downloadable games only? It would be a pretty bold move but not unprecedented (PSP Go). But where would you stash those games without a hard drive? Not possible. the HDD alone is $40+ and the loss of value from a disc-less console is hardly worth the $30 or whatever that the bluray drive costs sony/MS.

And the PSP Go was a commercial failure too.

 

[Biker19]

A version without bluray, for downloadable games only? It would be a pretty bold move but not unprecedented (PSP Go). But where would you stash those games without a hard drive? Not possible. the HDD alone is $40+ and the loss of value from a disc-less console is hardly worth the $30 or whatever that the bluray drive costs sony/MS.

And the PSP Go was a commercial failure too.

This. Plus do people honestly think that parents are going to let their kids max out their debit/credit cards on buying digital only games? Not gonna happen, especially as most average consumers (meaning adults) buys consoles.

They'll most likely grab the console with a disc slot before they buy a disc-less console. Consoles aren't like PC gaming where most of the hardcore gamers like us are & understand this stuff.

 

[JerryEveryday]

I got mines on Thanksgiving day on Amazon.com. Lightning Deal Assassin Creed bundle w/ 1 yr XBL and 2 games. $319 - all the gift cards I was hoarding and used some CC reward points. Total came out to $83. I'm happy.

 

[Afrocious]

I guess now would be a good time to sell the Xbox One I have sitting around here.

 

[RexNovis]

This is a truly bizarre business decision. Perhaps the discounts were more costly than most assumed.

It would be a real shame if this temporary price drop impacted the funding dollars MS has available for software development. Especially since the gains are likely to be offset completely in the coming months. Consumers have made it clear that the value of the XB1 is not equivalent to the accepted value of the PS4 so going back to the same price point is just suicidal from a sales perspective.

 

[truth411]

Going by that logic Sony should have won Nov. And Dec. Since they had won for ten months straight

The X1 did as well as it did because of the massive price cut and bundles. Rven with at that, the PS4 still sold really damn well. I just don't see how the X1 doesn't crash in Jan. But I could be way off

^^^This^^^ Great Post!!!

 

[truth411]

This is a truly bizarre business decision. Perhaps the disorients were more costly than most assumed.

It would be a real shame if this temporary price drop impacted the funding dollars MS has available for software development. Especially since the gains are likely to be offset completely in the coming months. Consumers have made it clear that the value of the XB1 is not equivalent to the accepted value of the PS4 so going back to the same price point is just suicidal from a sales perspective.

I'm just not understanding folks logic, it was announced as a temporary price cut the whole time, It shouldn't be a surprise at all. Also it was a great business decision especially when you consider the alternative, if the XB1 was at price parity with the PS4 during the holidays, it would have been a bloodbath. Probably starting a Snowball effect that M.S. wouldn't be able to overcome no matter the XB1 price point.

 

[Biker19]

I'm just not understanding folks logic, it was announced as a temporary price cut the whole time, It shouldn't be a surprise at all. Also it was a great business decision especially when you consider the alternative, if the XB1 was at price parity with the PS4 during the holidays, it would have been a bloodbath. Probably starting a Snowball effect that M.S. wouldn't be able to overcome no matter the XB1 price point.

I agree, though the question is, is it really worth sacrificing money for possibly future software development of games just to win a month or two of sales on one continent/region? My answer would be no.

 

[Crimson_Gold]

I agree, though the question is, is it really worth sacrificing money for possibly software development of games just to win a month or two of sales on one continent/region? My answer would be no.

I guess it is if, and I emphasize if, your major focus is to be a platform holder and not a software developer. MS has Halo and now Minecraft. It is possible that some feel like their 1st party, though the future of Minecraft is undetermined at this time, is fine. We shall see how this move impacts the division going forward

 

[foltzie1]

And like any good football team that was behind but managed to gain some momentum, MS is wisely punting on third down.

Bravo sir.

 

[truth411]

And like any good football team that was behind but managed to gain some momentum, MS is wisely punting on third down.

Hahahahaha...

 

[SEGAvangelist]

I agree, though the question is, is it really worth sacrificing money for possibly future software development of games just to win a month or two of sales on one continent/region? My answer would be no.

That's some high quality FUD.

 

[Biker19]

That's some high quality FUD.

What FUD? RexNovis was wondering about that.

 

[RexNovis]

I'm just not understanding folks logic, it was announced as a temporary price cut the whole time, It shouldn't be a surprise at all. Also it was a great business decision especially when you consider the alternative, if the XB1 was at price parity with the PS4 during the holidays, it would have been a bloodbath. Probably starting a Snowball effect that M.S. wouldn't be able to overcome no matter the XB1 price point.

I never said the price drop was a bizarre business decision. What I said was going back to the previous price point was a bizarre business decision. No doubt the price drop was an excellent business move for them for the holidays which is why it is just baffling that they'd risk all the gained momentum and WOM by rocketing back up to $399 when the consumers have made it clear the XB1 does not offer enough value to most in comparison to the competition at that price.

It's like they think the only thing holding sales back previously was lack of momentum. And now that they've won a month or two they can go back to the price point when it is in fact the price point that appears to have been the major deciding factor.

The way I see it either the discounts were cutting a too deep into their funding or they just made a really odd business decision based off some faulty logic. Either way it's not good for them.

 

[RexNovis]

That's some high quality FUD.

So you think MS has unlimited funding available then? If the discounts really were expensive for them there's no doubt it would have an impact on their funding. The discounts being too expensive is the only logical reason MS would bump their price pint back up and risk losing their momentum and positive WOM. I don't see how it's an unreasonable train of thought to see that as a threat to the funding available for future software development. I'm not saying I'm right but I'm saying it's well within the realm of a logical possibility.

 

[SEGAvangelist]

What FUD? RexNovis was wondering about that.

Missed that post. His post was some good FUD too.

 

[aaronwt]

Why would anyone buy an Xbox One

Why not? I already have two of them. In 2013 I got two Xbox Ones and one PS4. My only question is whether I will get my third Xbox One before I buy my second PS4.

 

[RexNovis]

Missed that post. His post was some good FUD too.

Perhaps instead of just claiming FUD you could elaborate just how anything I said was illogical or unreasonable. The Xbox division does not have an unlimited budget. We know this for a fact. The funding for those discounts had to come from somewhere.

 

[SEGAvangelist]

Perhaps instead of just claiming FUD you could elaborate just how anything I said was illogical or unreasonable. The Xbox division does not have an unlimited budget. We know this for a fact. The funding for those discounts had to come from somewhere.

Perhaps you can share the Xbox division budgets with us?

 

[ArkkAngel007]

I guess it is if, and I emphasize if, your major focus is to be a platform holder and not a software developer. MS has Halo and now Minecraft. It is possible that some feel like their 1st party, though the future of Minecraft is undetermined at this time, is fine. We shall see how this move impacts the division going forward

And honestly, I think if there were some strong software initiatives in play we'd have heard of them by now. Crackdown, Halo, Forza, Gears, Quantum Break, Tomb Raider....think there was another one that's fairly far out that people here were somewhat excited about, Phantom Dust? And Fable. Some smaller titles here and there, but not much out of the ordinary and most have been in the works for a good while. Those that are not announced quite yet for next year I doubt will be affected by the two month promotion.

As for Minecraft, which slipped my mind, that's a long ways off and not sure how that will be effectively handled. It will be interesting to see, but doesn't seem to have much bearing on this particular situation.

 

[Fedelias]

Why not? I already have two of them. In 2013 I got two Xbox Ones and one PS4. My only question is whether I will get my third Xbox One before I buy my second PS4.

Just out of curiosity why are you buying multiple consoles? Multiple rooms?

 

[RexNovis]

Perhaps you can share the Xbox division budgets with us?

Way to completely dodge the question and miss the entire point. The only claim o made with absolute authority is that the XBox division doesn't have a unlimited budget. Everything else is a logical progression building off that assumption. The exact budget figures don't matter. Money doesn't magically appear front thin air. If you are going to spend more money on one thing it's gotta come at the cost of something else. That's just common sense. So, Xbox spends cash money on heavily discounting their product and launching massive ad campaigns for the holiday season where they see record sales. That funding has to come from somewhere and seeing as how they are in the business of video games it makes sense that it might have come from their development budget.

 

[Biker19]

Perhaps you can share the Xbox division budgets with us?

You do realize that the Xbox division only gets a certain amount of money each fiscal year, right? It's not unlimited like you & the rest think that it is.

 

[truth411]

So you think MS has unlimited funding available then? If the discounts really were expensive for them there's no doubt it would have an impact on their funding. The discounts being too expensive is the only logical reason MS would bump their price pint back up and risk losing their momentum and positive WOM. I don't see how it's an unreasonable train of thought to see that as a threat to the funding available for future software development. I'm not saying I'm right but I'm saying it's well within the realm of a logical possibility.

Your posts seems to have an underlying assumption that M.S. wanted/going to make the temporary price cut permanent. But M.S. announced the day and date when the price was going back up from the beginning, thus doesn't that make the premise of your post faulty? Isn't it more logical to say that M.S. initiated a temporary holiday price cut to stimulate sales and prevent a PS4 snowball effect that couldn't be overcome in the U.S.? And now that the temporary price cut is over, they achieved exactly what they planned and wanted to do, which they announced from the beginning?

 

[SEGAvangelist]

You do realize that the Xbox division only gets a certain amount of money each fiscal year, right? It's not unlimited like you & the rest think that it is.

When did I say it was unlimited?

 

[RexNovis]

Your post seems to have an underlying assumption that M.S. wanted/going to make the temporary price cut permanent. But M.S. announced the day and date when the price was going back up from the beginning, thus doesn't that make the premise of your post faulty? Isn't it more logical to say that M.S. initiated a temporary holiday price cut to stimulate sales and prevent a PS4 snowball effect that couldn't be overcome in the U.S.? And now that the temporary price cut is over, they achieved exactly what they planned and wanted to do, which they announced from the beginning?

What? No. The quoted conversation has nothing to do with whether or not MS planned to go back up to the $399 price point or not it has to do with the heavy holiday discounts and advertising costing money and that money having to come from somewhere else in their budget. The intentions of the company have absolutely nothing to do with a conversation about basic budgeting.

Contrary to what some of you seem to believe the Xbox division does not have unlimited finding they have a budget that they have to stick to and manage and when you spend a lot of money on one thing that has to be balanced out with cutbacks from another.

 

[BokehKing]

When did I say it was unlimited?

you don't have to, people think that the microsoft gaming division has all access to the main microsoft bank accounts
it doesn't work that way
that's all he was addressing

 

[Steverulez]

So you think MS has unlimited funding available then? If the discounts really were expensive for them there's no doubt it would have an impact on their funding. The discounts being too expensive is the only logical reason MS would bump their price pint back up and risk losing their momentum and positive WOM. I don't see how it's an unreasonable train of thought to see that as a threat to the funding available for future software development. I'm not saying I'm right but I'm saying it's well within the realm of a logical possibility.

The Xbox division doesn't have unlimited funding, but considering the income it generates there is more than enough to spend what they think its reasonable on the division to help it operate and succeed.

Hardware has and always be a long-term game, you don't be a platform maker without that consideration and what you're suggesting could mean less money for future software development can be turned it on its head and used in the other way.

Hardware traditionally is sold for a loss? I suspect considering the XB1 and PS4 were profit making at launch (afaik from reading the internet anyway) that any losses MS suffered on the XB1 this holiday were not all that huge, when you consider previous hardware, but as I said: its a long-term game. Accessories, games, XBL subs are all there to make money in the long-term and get back any losses you incurred in getting the consumer the hardware in the first place.

More consoles sold = bigger user base to buy games/accessories/XBL subs = more money in the division = bigger budget for software development! See, really it was a genius plan to provide Xbox One owners with more games.

 

[SEGAvangelist]

What? No. The quoted conversation has nothing to do with whether or not MS planned to go back up to the $399 prove point or not it has to do with the heavy holiday discounts and advertising costing money and that money having to come from somewhere else in their budget. Contrary to what some of you seem to believe the Xbox division does not have unlimited finding they have a budget that they have to stick to and manage and when you spend a lot of money on one thing that has to be balanced out with cutbacks from another.

But that money could come out of advertising, the failed TV division, or other divisions. I'm calling your posts FUD because you and Biker19 are suggesting the money could come out of software development without any sort of proof.

 

[EmptySpace]

again, why are people so surprised that the price is back to where it has to be?


seriously, do people actually thought it was gonna be 329 forever?


didn't we already have this discussion before? they lowered the price to get people to buy the system because they can't sell the system otherwise. period. they took a loss for the busiest, most profitable months of the whole year just so they can get more xbones to home.

and people actually thought xbox will like to be a loss leader? i don't even think they have enough services and studios to make up for what they will lose if they went with that strategy.

 

[Chris1]

The Xbox division doesn't have unlimited funding, but considering the income it generates there is more than enough to spend what they think its reasonable on the division to help it operate and succeed.

Pretty much my thoughts aswell. I don't think the xbox division gets unlimited funds in the sense that "let's just give away our consoles for free and run away with the console scene because we can" but more in the sense that if it needs $x billion in order to stay relevant and succeed then they will get $x billion.

 

[EatMyFace]

Going by that logic Sony should have won Nov. And Dec. Since they had won for ten months straight

The X1 did as well as it did because of the massive price cut and bundles. Rven with at that, the PS4 still sold really damn well. I just don't see how the X1 doesn't crash in Jan. But I could be way off

That's not my logic. I know price cut and bundles are the reason for the boost. Never said otherwise. PS4 is my bet to win January but XBO is the one who won the holidays. That's an advantage it has that we can't just overlook.

 

[truth411]

I never said the price drop was a bizarre business decision. What I said was going back to the previous price point was a bizarre business decision. No doubt the price drop was an excellent business move for them for the holidays which is why it is just baffling that they'd risk all the gained momentum and WOM by rocketing back up to $399 when the consumers have made it clear the XB1 does not offer enough value to most in comparison to the competition at that price.

It's like they think the only thing holding sales back previously was lack of momentum. And now that they've won a month or two they can go back to the price point when it is in fact the price point that appears to have been the major deciding factor.

The way I see it either the discounts were cutting a too deep into their funding or they just made a really odd business decision based off some faulty logic. Either way it's not good for them.

Let me clarify, this is what I'm not understanding... I'm not seeing what's "Bizarre" when from day one they gave a day and date when the price was going back up. It seems, you have a " the price cut should have been permanent, but because it's was temporary then something wrong" vibe to your posts. But M.S. never intended the price cut to be permanent, it was intended to be temporary which makes it easier to throw bundles along in the mix. Achieving the Desired results of stimulating holiday sales and preventing a PS4 Snowball effect that couldn't be overcome in the U.S.

 

[NolbertoS]

again, why are people so surprised that the price is back to where it has to be?


seriously, do people actually thought it was gonna be 329 forever?


didn't we already have this discussion before? they lowered the price to get people to buy the system because they can't sell the system otherwise. period. they took a loss for the busiest, most profitable months of the whole year just so they can get more xbones to home.

and people actually thought xbox will like to be a loss leader? i don't even think they have enough services and studios to make up for what they will lose if they went with that strategy.

Problem with that is Xbox is they are the loss leader this gen (excluding Nintendo Wii U). I'm not alone in not biting for an Xbox One at 329.99 and won't even bite at 399.99. Xbox 3rd party software is still selling lower than the PS4 counterparts. Also MS has "hurt" or cheapened there xbox brand by continually lowering the Xbox One's price over all of 2014. The US consumers will wait till the Xbox price will go down next Black Friday or whenever. MS "scare" tactics of jacking up the price and saying last chance isn't fooling anyone, they'll announce a permanent price drop soon.

 

[RexNovis]

The Xbox division doesn't have unlimited funding, but considering the income it generates there is more than enough to spend what they think its reasonable on the division to help it operate and succeed.

Hardware has and always be a long-term game, you don't be a platform maker without that consideration and what you're suggesting could mean less money for future software development can be turned it on its head and used in the other way.

Hardware traditionally is sold for a loss? I suspect considering the XB1 and PS4 were profit making at launch (afaik from reading the internet anyway) that any losses MS suffered on the XB1 this holiday were not all that huge, when you consider previous hardware, but as I said: its a long-term game. Accessories, games, XBL subs are all there to make money in the long-term and get back any losses you incurred in getting the consumer the hardware in the first place.

More consoles sold = bigger user base to buy games/accessories/XBL subs = more money in the division = bigger budget for software development! See, really it was a genius plan to provide Xbox One owners with more games.

While this is certainly true, you could very well view it as a sort of hedge bet that leverages future sales and proceeds it doesn't really apply to the conversation at hand. I was talking about budgets meaning appropriated funds for a single fiscal year. So in regard to yearly budgeting heavy discounts and advertising must draw funding from somewhere else and since they are in the business of making games its reasonable to assume that it could lead to cut backs in their development budget. I'll give you it's a short term minor concern but that doesn't make it FUD.

But that money could come out of advertising, the failed TV division, or other divisions. I'm calling your posts FUD because you and Biker19 are suggesting the money could come out of software development without any sort of proof.

Except neither he nor I asserted that claim as fact. On the contrary, I asserted it as a likely possibility and explained step by step how I arrived at that conclusion. In proclaiming FUD on a proclamation of likely possibility you are basically calling my line of thought baseless or unreasonable. I have explained why it is neither. Unless you can show without a shadow of a doubt that my reasoning is irredeemably flawed in some regard it is not FUD.

 

[BriGuy]

Just out of curiosity why are you buying multiple consoles? Multiple rooms?

Pillow forts are for kids.

 

[The Shogun]

I highly doubt any 1st party game budgets were reduced specifically to pay for the cost of the price cut.

 

[James Sawyer Ford]

Not sure why you'd exclude Sony from that. Playstation sells more during the holidays as well.

I'm not saying that Playstation doesn't get a bump

What I'm saying is that, traditionally, Microsoft/Nintendo's bumps have been much greater.

 

[samar11]

It's still 349 on amazon?

 

[RexNovis]

Let me clarify, this is what I'm not understanding... I'm not seeing what's "Bizarre" when from day one they gave a day and date when the price was going back up. It seems, you have a " the price cut should have been permanent, but because it's was temporary then something wrong" vibe to your posts. But M.S. never intended the price cut to be permanent, it was intended to be temporary which makes it easier to throw bundles along in the mix. Achieving the Desired results of stimulating holiday sales and preventing a PS4 Snowball effect that couldn't be overcome in the U.S.

It's bizarre because as a business your goal is to promote and perpetuate sales. Prior t the price cut they were getting consistently outsold by their direct competition. That is an unfavorable market position. However, with the discount incentives they ran for the holidays they had their first major sales success in nearly a year. While a success it was not a big enough success to regain all the ground lost in the previous 11 months. So, logically, most businesses would seek to continue whatever policies or strategies allowed them to overtake the competition in monthly sales so that they can regain lost marketshare and eliminate the remaining sales gap in their major markets. By eliminating said strategy and returning to their original price point they sacrifice any chance they had of regaining substantial marketshare. From this view point, the decision seems pretty bizarre to me.

 

[NolbertoS]

It's still 349 on amazon?

It was 329.99 last night and sold by amazon. Right now its 379.99 and sold through a third party. Guess Amazon ran outta stock at the cheaper price.

 

[SyenceLabb]

It's bizarre because as a business your goal is to promote and perpetuate sales. Prior t the price cut they were getting consistently outsold by their direct competition. That is an unfavorable market position. However, with the discount incentives they ran for the holidays they had their first major sales success in nearly a year. While a success it was not a big enough success to regain all the ground lost in the previous 11 months. So, logically, most businesses would seek to continue whatever policies or strategies allowed them to overtake the competition in monthly sales so that they can regain lost marketshare and eliminate the remaining sales gap in their major markets. By eliminating said strategy and returning to their original price point they sacrifice any chance they had of regaining substantial marketshare. From this view point, the decision seems pretty bizarre to me.

It's bizarre because you're looking at sales success through the prism of the console wars.

 

[aaronwt]

Just out of curiosity why are you buying multiple consoles? Multiple rooms?

Yes. Ideally It's more convenient to have a console at each TV than to move them around.

 

[RexNovis]

It's bizarre because you're looking at sales success through the prism of the console wars.

Nah just looking at it as a competitive market wherein each competing company seeks to out perform their closest competitors. It's pretty standard fare for a limited market like console gaming or any number of other consumer facing products. You're goal is to make as much money as possible. Which means each sale to a direct competitor is a lost sale for you and therefore lost profit.

 

[Steverulez]

While this is certainly true, you could very well view it as a sort of hedge bet that leverages future sales and proceeds it doesn't really apply to the conversation at hand. I was talking about budgets meaning appropriated funds for a single fiscal year. So in regard to yearly budgeting heavy discounts and advertising must draw funding from somewhere else and since they are in the business of making games its reasonable to assume that it could lead to cut backs in their development budget. I'll give you it's a short term minor concern but that doesn't make it FUD.

I think their "budget" went out of the window when they bought the Gears and Minecraft/Mojang tbh.

Also, there is no "you could very well view it", its the basics of making a hardware platform in the video games industry: get customers to buy your console, sell them many future products - its literally the entire basis for Sony, Microsoft, Nintendo's business otherwise they wouldnt sell consoles in the first place.

1 years budget is such a meaningless thing especially in the first year of a consoles existence, if they were that concerned about it I would think the Xbox One would have been discontinued by now with the way sales fell off the cliff. MS said at E3 2013 they have more games in development now than at any other time in Microsoft Studios history and I think with what they have announced we can see that there is a lot certainly on the AAA side.

Let me put it to you this way: How many games (or "software in the development budget") would Microsoft have to cancel/forego to make appropriate savings to make up for what this promotion cost? Then, compare that with the potential revenues they could make from any one of these games ranging from being a break-even product to being a massive hit... also consider what the point of cancelling on budget/time games that fill a hole in the portfolio and look like they will positive additions to the platform is to use the money for selling more consoles which this (these) game(s) could have sold to.

Its a completely nothing argument, really.

 

[blakep267]

I highly doubt any 1st party game budgets were reduced specifically to pay for the cost of the price cut.

Also i assume that most games are locked in for the next few years. Like 2016 games have already begun development last year or earlier

Same can be said for their 3rd party marketing deals

 

[RexNovis]

I think their "budget" went out of the window when they bought the Gears and Minecraft/Mojang tbh.

Also, there is no "you could very well view it", its the basics of making a hardware platform in the video games industry: get customers to buy your console, sell them many future products - its literally the entire basis for Sony, Microsoft, Nintendo's business otherwise they wouldnt sell consoles in the first place.

1 years budget is such a meaningless thing especially in the first year of a consoles existence, if they were that concerned about it I would think the Xbox One would have been discontinued by now with the way sales fell off the cliff. MS said at E3 2013 they have more games in development now than at any other time in Microsoft Studios history and I think with what they have announced we can see that there is a lot certainly on the AAA side.

Let me put it to you this way: How many games (or "software in the development budget") would Microsoft have to cancel/forego to make appropriate savings to make up for what this promotion cost? Then, compare that with the potential revenues they could make from any one of these games ranging from being a break-even product to being a massive hit...

Its a completely nothing argument, really.

Never argued it was a major concern I've just been responding to accusations that my line of reasoning leading to it as a possible conclusion were "FUD." Albeit a minor concern, it's certainly not nothing. While it likely wouldn't lead to the cancellation of projects in development but such expenditures could lead to cuts in the budget which would mean cut bonuses, raise freezes, hire freezes or prolonged development any of which impacts the mood and productivity in studios during development. Regardless it's tangential to the topic of the thread at large and the intent of my original post was more to express consternation with the decision to return to the higher price point. So let's get back to the topic at hand. Apologies for the derail I simply took offense to the assertion that my train of thought was baseless and explained why.

 

[Papacheeks]

I think their "budget" went out of the window when they bought the Gears and Minecraft/Mojang tbh.

Also, there is no "you could very well view it", its the basics of making a hardware platform in the video games industry: get customers to buy your console, sell them many future products - its literally the entire basis for Sony, Microsoft, Nintendo's business otherwise they wouldnt sell consoles in the first place.

1 years budget is such a meaningless thing especially in the first year of a consoles existence, if they were that concerned about it I would think the Xbox One would have been discontinued by now with the way sales fell off the cliff. MS said at E3 2013 they have more games in development now than at any other time in Microsoft Studios history and I think with what they have announced we can see that there is a lot certainly on the AAA side.

Let me put it to you this way: How many games (or "software in the development budget") would Microsoft have to cancel/forego to make appropriate savings to make up for what this promotion cost? Then, compare that with the potential revenues they could make from any one of these games ranging from being a break-even product to being a massive hit...

Its a completely nothing argument, really.

Well they cancelled Black Tusk's game in favor of a gears game, that more than likely was more cost effective than creating a game/tools from scratch. Assets for Gears were available from the get go with the acquisition that could easily be put into UNREAL 4.

Also they canned all people involved with the original entertainment and tv section of the console. Canned EU PR division for xbox.

Also cancelled and sold entertainment for xbox for 400+ million.
Which was done early 2014 after NPD's came in for first couple months. Add in money spent for giving away digital Ubisoft games, CALL OF DUTY, timed COD DLC, Tomb Raider timed exclusive, and discounting heavily your console that you make little next to nothing on at 399, and it's a bad situation.

I'm not including all the TV ad's they had with Aron Paul, big theater behind titanfall videos they were playing in every AMC, Regal Cinema and it add's to alot.

They've lost a shit ton of money within a year. More than the 360's first year with RROD I bet.

I mean look at 2013 and what their focus was on the console, shows you where the money was being put which was more on the entertainment side. So whatever at the time they had for software budget was probably already set give or take some adjustment's.

To go and expand that and pay money to Ubisoft, Activision, Square-Enix, and take huge loss on hardware, paints a bad financial issue for the gaming division, especially if the budget for that division was re-adjusted c couple times within a short period of time.