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Xbox One distributor reports losses as sales fail to pick up in China
- Thread starter John Bender
- Start date
Chobel
Member
Wrong, that's "Devices and Studios Group". Xbox Division is part of that group but it's not the group.
It says "Xbox One" division. Not "Xbox" division.
The loss is very clearly attributed to Xbox One console and nothing to do with surface.
Did you read your own link?
Devices and Studios Group
The Devices and Studios group is responsible for most of Microsoft's hardware products and development.
Xbox
Microsoft entered the game console market dominated by Sony and Nintendo in late 2001, with the release of the Xbox. The company develops and publishes its own video games for this console, with the help of its Microsoft Game Studios subsidiary, in addition to third-party Xbox video game publishers such as Electronic Arts and Activision, who pay a license fee to publish games for the system. The Xbox also has a successor in the Xbox 360, released on 2005-11-22 in North America and other countries.[3][4] With the Xbox 360, Microsoft hopes to compensate for the losses incurred with the original Xbox. However, Microsoft made some decisions considered controversial in the video gaming community, such as selling two different versions of the system, as well as providing backward compatibility with only particular Xbox titles.[5][6]
Microsoft Mobile Oy
Formally Nokia's Hardware division, this group is in charge of developing the Lumia line of Windows Phones
Microsoft Hardware
Microsoft also markets a number of other computing-related hardware products as well, including mice, keyboards, joysticks, and gamepads, along with other game controllers, the production of which is outsourced in most cases.[2]
Surface
This group also develops the Microsoft Surface and Microsoft Surface Pro tablets that run Windows RT and Windows 8 respectively.
1% of 1 billion is not 100 million.
That is correct. To officially sell in China, a Chinese company had to be a "partner" in the business.
I'm sure Microsoft would have been happy to sell through a standard Xbox One console on its own. It was forced to partner with BesTV due to Chinese law.
Of course that means that the Chinese Xbox One is treated as a separate product. It is its own unique region. There is basically China and RoW when it comes to the Xbox One consoles and games. Chinese games only work on the Chinese Xbox One and RoW games (America, Japan, Europe, etc.) won't run on the Chinese Xbox One.
If you're living in China and want an Xbox One, chances are you'd probably want to import one so you weren't limited to just the Chinese ecosystem.
Plus, there's also the whole piracy thing. Can't do that on the Xbox One just yet.
No, BesTV does a lot:
http://www.bestv.com.cn/en/index.html
I'm talking about BesTV Xbox One division. And no they don't do Surface, that doesn't need a domestic supplier in China
That quote from the the article. So unless the article is wrong, that $2.75m loss is directly from Xbox One
Abinash117
Member
I doubt there's games that interest the Chinese, I think MMOs and f2p games are whats popular there investing in those games more-so would probably help.
Jesus. Of course they dont do Surface. I mean they could do other things inside that division. We cant know if it is only for Xbox or if it called the Xbox division.
Edit. Many articles talk about MS Xbox division even thou there is not a Xbox division. It is the Device division.
Are you just going to ignore every post that says "Xbox One division" in order to make it seem like you're right?
Because that's a stupid thing to do.... Especially when it's Bes TV reporting THEIR Xbox One division and not MS.
Is there a wallpaper version of that chinese xbone logo? I don't even own one, but that looks great.
Chobel
Member
Is it really hard? This group is not called "xbox division", it's called "Devices and Studios Group".
Official price is around $515.
Apparently it is for you. There is not an Xbox divsion. The Xbox is in the Computing and Gaming Hardware Division.
Computing and Gaming Hardware, comprising: Xbox gaming and entertainment consoles and accessories, second-party and third-party video game royalties, and Xbox Live subscriptions (“Xbox Platform”
; Surface devices and accessories (“Surface” and Microsoft PC accessories;Not saying I am right. I am saying we dont have all the information.
Ugh....that's more than most of them earn in a month.
What is Microsoft doing? They could at least sell it for the normal $350.
Chobel
Member
Apparently it is for you. There is not an Xbox divsion. The Xbox is in the Computing and Gaming Hardware Division.
Computing and Gaming Hardware, comprising: Xbox gaming and entertainment consoles and accessories, second-party and third-party video game royalties, and Xbox Live subscriptions (“Xbox Platform”
That's good, now read the OP
It's says right there xbox one division (I missed "one" in my other posts), not any other name, "xbox one".
Oh boy. Not going to repeat myself. It is very easy to understand.
Thanks but I would need to PDF translated to get the information we need.
Chobel
Member
Understand what? Because there's nothing easy here.
EDIT: OK, I got it, you think it could be division which do more than Xbox stuff, but the journalists are mistakenly calling "Xbox One Division".
To be fair PS4 is being sold around ~470 US Dollars there as well.
But grey market sales are norm for PS4 at the moment due to lack of official release.
And even with official release (that may have region lock) I still see grey market sales being higher than official sales.
My gosh.. to be fair, it fits the situation, doesn't it?
We'll see how the ps4 does.
Better
Actually Korea has not done that badly with adoption of console hw during PS2 and NDS era. PS2 was at 3+M and NDS became a mainstream darling during its peak year - seeing people using them outdoors was pretty much as common as smartphones are now. Of course that was during a time when PC market had its highest growth as well.Rayge said:
Neowin saying Xbox division doesnt mean that there is a division that only sells Xbox. Could be the division isn't even call Xbox One division. Neowin has talked about Microsoft Xbox division before and guess what? Microsoft doesn't have a division that only sells Xbox.
Delusibeta
Banned
Clue: We aren't talking about Microsoft here.
Chobel
Member
Yeah I got what you meant, I edited that comment. You don't trust what the journalist wrote, which is fair because, as you mentioned, it happened before.
SwiftDeath
Member
Neowin is quoting a different article by a different publication which clearly states that it's BesTV's Xbox One Division specifically.
Could the other site be incorrect? Sure although I think it's unlikely having looked at a google translation of the original article that's in chinese
BUT neowin's past history with MS's own division breakdowns is entirely irrelevant if they are simply directly reporting what some other publication says which they clearly are.
Yes, Neowin is quoting Tech in Asia site. That site doesnt even say anything about a division at all. It says a subsidiary company thats in charge of the Xbox One.
BrokenEchelon
Banned
I can confirm that the situation is the same in the Middle East as well.
Microsoft doesn't control the Chinese company. They are a minority shareholder.
Perhaps you should read the original article? Rather than just assuming that Neowin is right?
Because Neowin seems to be abbreviating someone else's article (which doesn't make the claim that it does) which is based on an original Chinese news story based on the annual report.
When you run that Chinese story through Google translate you get:
The "business scope" is more than just "distributing systems."
SwiftDeath
Member
Right and the original article stipulates that the subsidiary company is responsible for a loss of 17.24 million yuan which comes to the same thing.
Edit: Hmm perhaps I am misinterpreting something
SomedayTheFire
Member
A lot like products in English speaking countries with foreign languages plastered on them to look cool.
Hey I am not saying I know one way or another. I am saying we would need to translate that PDF to get the information to know.
statham
Member
Hey now!
SwiftDeath
Member
My assumption had been that the subsidiary companies made to distribute these consoles were for the sole purpose of that and any other activity required to achieve that [game certification etc.]
Although as Syriel points out it would seem the scope for that particular subsidiary company is in fact described as larger than simple distribution and everything that entails. Whether or not the subsidiary company is actually actively doing all those other activities described is in question I suppose.
BrokenEchelon
Banned
...Scatter...
Banned
Another negative XBOX One thread for Bender. Claims he'll never get an XBOX One, yet can't stop.posting about it.
...Scatter...
Banned
Whatever, I'm dropping it.
Maintenance
Member
Should we see who posts bad Sony news too? Or bad Nintendo news? It could be quite interesting.
Coulomb_Barrier
Member
News at 11: Xbone not selling in China shocker.
Seriously though, I wonder what MS's projections were for the Chinese market. No doubt hugely inflated and unrealistic.
Seriously though, I wonder what MS's projections were for the Chinese market. No doubt hugely inflated and unrealistic.
funkystudent
Member
I forget, did they ship 100k or 10k to china for the XB1 launch?
edit. 100k. Says it in the damn OP!!
edit. 100k. Says it in the damn OP!!
Rogue_Ledr
Banned
Sony needs to get its ass in gear and get its system into China now.
The country seems wide open.
The country seems wide open.
Chobel
Member
I was doing that and I was going to post like exactly what you're saying right now, but you beat me to the punch XD. Shouldn't have trusted Neowin.
EDIT: Or maybe I did right by trusting Neowin? Damn it ZhugeEX!
I've just had a look at the PDF.
It's certainly talking about Bes TV Xbox division for hardware, software and entertainment apps distribution on Xbox.
On page 139 it mentions that Xbox division specifically with a loss of 17,244,756.7 yuan.
The company seems to be related to hardware, software and services just on Xbox One according to the PDF. They say it's basically joint with Microsoft.
The quote from the PDF is quite literally - "The company set up a joint venture with Microsoft co-Shanghai Information" and they describe the revenue as for Xbox hardware, software, services, marketing etc.... Basically only Xbox and MS stuff
It might not be selling but we dont know that from this new information.
Maybe, This article doesnt tell us that thou.
...Scatter...
Banned
Seems like China would be one of those markets that's consistently one generation behind in consoles due to pricing. But PC being big there makes sense.