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Analyst: Xbox "generates" $2 billion in losses for MS. Hides it with patent royalties
- Thread starter ekim
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LiquidSolid
Member
$2 billion per year?!
Uncle Rupee
Banned
The Xbox One is really like the Xbox one after all.
Whitechocolatekrispies
Banned
How?
Seriously how is it the Xbox division hemorrhaging money like that?
Seriously how is it the Xbox division hemorrhaging money like that?
fastballspecial
Member
Holy crap. So if they were to stop licensing stuff out relating to Android they'd be up Shits Creek?
Monty Mole
Member
I struggle to believe this. Even before Xbox was lumped in to the same division as everything else, it was starting to turn a profit. I can imagine the division as a whole making huge losses without the patents - with Surface and Windows Phone etc - but I doubt very much that the Xbox 360 is the thing dragging it down.
I wonder if this analyst is just making assumptions based on how the original Xbox. Either way, he's making assumptions.
I wonder if this analyst is just making assumptions based on how the original Xbox. Either way, he's making assumptions.
I wonder that too. The 360 has high sales, xbox live brings in millions in subscribers alone, decent first party sales, kinect was the biggest hardware launch in history, but it's down 2 billion every year? I don't get it.
Slayer-33
Liverpool-2
Asking myself that, considering live generates an assload of money I bet
Didn't they spend $100 million on Controller prototypes for XBOne?
ComputerMKII
Banned
Jesus.
Garrett 2U
Member
Yeah I dunno how that's possible. R&D for Xbone?
Either it's not true or there's some seriously epic mismanagement going on.
How dare you dirty up the OG Xbox, OG Xbox is a fantastic console, Microsoft loss a shit ton of money because of it but it was a powerful beast through and through.
The Xbox One feels like a limp hail mary blitz play that's being executed terribly at every turn.
Exclusive content deals aren't free, Console R+D, RROD, Game development.
intheinbetween
Member
so, this is about 360, not XB1, right?
Visualante2
Member
Pity the Ouya isn't performing better eh, Microsoft?
LiquidSolid
Member
Christ, that's pretty brutal. x_x I can see why some of those guys wanna drop the whole division.
Also easy to see why they went the media box approach with the Xbone, as they clearly weren't making money off the hardcore gamers.
Opus Angelorum
Member
I hope someone posts financials because this is bullshit.
GoofsterStud
Member
But why are stock holders really trying to get rid of the Xbox division so aggressively.
It's about the whole Xbox Division, so both, for the past two years it will essentially be 360 profits - XB1 costs = -2 billion.
R&D, studio's, advertising, cancelled projects, third party exclusives and contracts, inefficient staff to output ratio, cloud infrastructure, maintenance, warranties and repairs and a hell of a lot more? Who knows really. Would be interesting to find out.
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?
Even with ridiculous RNDon controllers that cost 100 millions and APUs for billions, how does that posdibly come to a yearly multi billion loss?
Twin Tails
Member
Making a killing off Android.
I simply dont believe MS are losing $2bn on Xbox, this guy is just guessing MS dont give out enough detail for him to know this as fact, there certainly are products in the E&D division like Windows phone losing money (MS pumping money into Nokia mainly) but it's hard to imagine Xbox is one of them
daninthemix
Member
That has to be R&D for XBO. 360 was a huge success even with RROD and Live is a money-maker, surely?
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.
ThisWreckage
Banned
Well, the red ring of death cost them a ton of money and they raised the price of Live mid generation for a reason. Not to mention that they've been throwing money at the NFL for that deal, they spent a ton of money on controller prototypes, and there is no way to figure out how much they paid EA for Titanfall.
UltraGunner
Banned
Damn, with all the money that they generate off of royalties and Live it's crazy that they are still losing so much money from the Xbox brand. There must be some SERIOUS mismanagement going on.
SwiftDeath
Member
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?
Thought about it earlier
Not sure where the losses are coming from though, RROD or R&D I wonder at this point?
Sidewinder
Member
Smells like BS to me. If not, Xbox One would be their last console.
Why blame the lawyers for what companies choose to do? Lawyers are the ones writing articles about patent reform.
scytherage
Member
There's a theory that Microsoft is intentionally messing up their Xbox One effort so they can get out of the console business. Just a theory.
It's just that stockholders don't really like the Xbox brand, it's like a money pit for them.
It's just that stockholders don't really like the Xbox brand, it's like a money pit for them.
UltraGunner
Banned
Well they did spend 100 million making a controller that's basically the same as the previous one, R&D must be part of it.
iamshadowlark
Banned
Thread title? Its the EDD division not specifically xbox.
Read up on patent trolling, its big business son.
They built a facility to test the controller.
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)
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)
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