Thread title? Its the EDD division not specifically xbox.
That exclusive DLC doesn't come for free. They've spent all this time on "You've got to spend money" but they haven't quite made it to "make money" yet.How?
Seriously how is it the Xbox division hemorrhaging money like that?
Read the boldedThread title? Its the EDD division not specifically xbox.
Thread title? Its the EDD division not specifically xbox.
Microsoft is probably losing $2.5 billion on Skype, Xbox, and Windows Phone. Of that, $2 billion in losses are attributable to the Xbox platform.
Thread title? Its the EDD division not specifically xbox.
It's about the whole Xbox Division, so both, for the past two years it will essentially be 360 profits - XB1 costs = -2 billion.
It's about the whole device division. Not only Xbox.
If they have 20 million Gold subscribers, they're making 1 Billion per 10 months off sub fees.
It's about the whole device division. Not only Xbox.
Glad someone else made this thread
Thought about it earlier
Not sure where the losses are coming from though, RROD or R&D I wonder at this point?
They built a whole silicon lab for the Kinect sensor and several other chips - I guess these things are expensive.
If this is true, then I am shocked there is an xbox one at all.
This has been laughed at by many other analysts.
either there is some serious misreporting going on
because last i knew x360 was super profitable so was xbox live.
unless xboxone r and d took such a toll .... if its true nintendo is well off buying off the xbox division and putting their first party on them .... and that would be a legitimate contender to ps4 ...
honestly tho .... I dont see the xbox division still hemorrhaging this badly ... bing yes ... but not the xbox division. (and we all know how much they still keep trying to win the bing battle)
Woah son
Now that's an investment. They're not kidding around
Though Microsoft's still working with AMD to build out some of its chips this time around, it's also invested millions of dollars in building out verification facilities (among others) on-site in Mountain View and doubling the amount of in-house engineering dedicated to silicon.
"In the consumer space, to control your destiny, you can't just rely on commodity components. You have to be able to make your own silicon. It helps with performance; it helps with the cost; it helps make your product smaller; it helps you create your own IP (always a good thing). I'll argue you're a lot more flexible -- you're not relying on somebody else's schedule; you make your own. So we're obviously heading that way. The stuff we've done over the last 13, 14 years is one example of that within Microsoft. And you're gonna see more and more of that, is my guess, as you go forward."
Wouldn't be surprised. They spent $400m on an NFL deal. Boasted about spending $100m on a controller tweak. And those third party exclusives aren't cheap. Who know how much securing TitanFall cost them. The XBO will be a huge money sink for them for the next few years, especially now that MS can't count on having a huge advantage in terms of 3rd party multi-plat sales that they enjoyed this generation.
This has been laughed at by many other analysts.
I thought Live generates upwards to a Billion or more a year in revenue, servers and maintenance can't be that expensive. Hardware should make a good profit per unit.
Even with ridiculous RNDon controllers that cost 100 millions and APUs for billions, how does that posdibly come to a yearly multi billion loss?
This has been laughed at by many other analysts.
They can afford it.
They can afford it enough that along with Apple and a few others they just spent 4.5 billion funding a patent troll company to go after Google and other Android manufacturers.
http://www.wired.com/wiredenterprise/2013/11/rockstar-2/
And this is why the sale of vast patent portfolios, and software patents, are a bad thing. Nobody will win but the lawyers, it's such a waste of time.
They've done a LOT of investing in all kinds of areas with the Xbox One. Securing partnerships, exclusives, funding of all 1st party game, R&D for the hardware, marketing and media events, manufacturing for the hardware, etc etc.They built a whole silicon lab for the Kinect sensor and several other chips - I guess these things are expensive.
Oh god this again.
This chart isn't how businesses operate, everything is based off each fiscal year.
It is FY?
Is it possible that he's referring to the running total of the Xbox gaming devision as per this graph? It's plausible that this is now at negative 2 billion. It is completely implausible that it's losing 2bn per year.
$2 billion per year?!
So how did they make money before android really took off?
Well is that the E+D division? if so he's saying that chart is better reflected if you take 2 billion off every year to account for the Android patents.
That's not even remotely plausible.
E&D may be generating losses, but that's from Surface, Windows Phone etc. Certainly not from the Xbox business.