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Thread: MS in Money magazine

  1. MS in Money magazine

    anyone read this issue ? cover says "MS' 40 Billion dollar bet"

    bit on XBox, some interesting stuff. a Rep said that its "alright" that MS is losing money on every Box sold, the point was to 'get a good userbase' and then 'rake in' the money on higher margin software.

    the magazine called XBox an "instant success" for selling 1.5 mil. units in 2 months.

    Rep. said something about it along the lines of "we think of it as planting a few seeds and then nurturing them" .. god im sure im butchering it, can anyone quote the section ? anyway that was the gist of it.

    oh and he also said "if we didnt think there was money to be made[XBox] we wouldnt be doing it" so obviously he seemed pretty confident that it'll be a lucrative endeavour.

    other interesing part about MS, gives you an idea of how much money the company has to burn.

    they make 1 billion dollars in profit a month
    their OS is on 90 percent of PCs shipped, 96 percent of business machines
    they have enough disposable cash to :
    buy the entire airline industry, twice
    buy all the gold in Fort Knox, four times
    buy every major baseball, basketball, and hockey team in America

    if they wanted to, it seems like they could all but absolutely guarantee the XBox's success

  2. #2
    But what the hell is the point of having the number 1 console if you lost money doing it? Sony is number one, but they are making a killing profit wise. If it takes billions to push the Xbox to number 1, whats the use?

  3. Originally posted by piku
    If it takes billions to push the Xbox to number 1, whats the use?
    none
    "Punch the yeti! Win a free Llama!"

  4. If it takes billions to push the Xbox to number 1, whats the use?
    to make billions once its there. (MS taking)


    oh another part of the article (this is nongame related, but ties into the MS expanding into other areas-set top box for example)

    it said that they're developing a program for cell phones to carry out a variety of tasks .. basically like an OS for your cell phone, they then hope to market it and have it be the default OS people use as an interface for their phones, or something like that. seems MS isnt content with controlling PCs.

  5. #5
    Ah my friend, but that's where sales from games and content come in. Also, most endeavors cost money before the profit comes in. As the saying goes, sometimes you have to loose money to make money. If Microsoft does well with this console they can easily establish a userbase that will come back for more the next gen. just like Sony and Nintendo. Then they make money with games and content and they make sure they have a place in the multimedia set top box industry (which unless Nintendo really starts showing off will be one of the two main directions the industry will probably take).

    Plus it's worth while to keep their closest rivals Sony and moreso AOL at bay.
    Taking it one day at a time.

  6. Now maybe people will understand why I hate Microsoft so much...there lust for power is sickening
    "The only way microsoft would make something that doesn't suck is if they made vacuums"

  7. Originally posted by Psx
    Now maybe people will understand why I hate Microsoft so much...there lust for power is sickening
    Nope... I understand your a loser.

  8. Originally posted by EThugg


    Nope... I understand your a loser.
    Yup.... I understand that poor grammar can weaken an already crappy retort.
    ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA ATA

  9. Originally posted by fiend_of_rejections


    Yup.... I understand that poor grammar can weaken an already crappy retort.
    Unfortunately I have bad grammar as well...

    Originally posted by Psx
    Now maybe people will understand why I hate Microsoft so much...there lust for power is sickening
    ('their' is the correct term to use)
    "The only way microsoft would make something that doesn't suck is if they made vacuums"

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