Xbox 360 will make profit next year? - bit-tech.net Forums

Tim S · 4th May 2007, 11:32

http://www.bit-tech.net/news/2007/05...fit_next_year/

themax · 4th May 2007, 11:40

They are already working on the successor? And people bashed Sony for pitching the idea of PS4 lol.

But no dout their accessories are making up a good portion of their profit, with the pricess most 360 add ons go for it's no wonder. I think introducing the elite might have pushed than back from hitting their target income and trying to get out of the black. I thought MS was already profitting, although very little from the 360 (it was either that or breaking even on cost to make vs current selling price).

Gman22 · 4th May 2007, 11:41

They were probably working on it before the 360 came out. Its a perpetual cycle.

Tim S · 4th May 2007, 11:50

It'll already be in the very early stages of development. For example, Nvidia was already working on GeForce 8800 BEFORE GeForce 6800 was launched.

HugoB · 4th May 2007, 13:49

Lol, nice point Tim, shame ATI only started on the R600 last month...

I wonder how long it'll take for Sony to make the same announcement with the PS3...

CardJoe · 4th May 2007, 14:07

New PS models were announced today actually. The new PS is in development as more of a media platform

perplekks45 · 4th May 2007, 14:57

Quote:

Originally Posted by Archangel

Lol, nice point Tim, shame ATI only started on the R600 last month...

[ontopic] But what exactly is he trying to tell us? They were smart enough to build a console actually able to make profit? They overprice their accessories to make profit? They overprice the games?

<A88> · 4th May 2007, 15:31

Quote:

Originally Posted by CardJoe

New PS models were announced today actually. The new PS is in development as more of a media platform

Do you have a press release or any details?

<A88>

plug_in_ross · 4th May 2007, 15:36

So, is the Wii the only next-gen console to be making a profit at the moment? Something like $12 per console sold.

CardJoe · 4th May 2007, 15:48

Quote:

Originally Posted by <A88>

Do you have a press release or any details?

<A88>

http://www.eurogamer.net/article.php?article_id=76038

Only rumours, hence no news article on it.

Colonel Sanders · 4th May 2007, 16:56

So basically MS is using their deep pockets to mangle yet another market? Why is anyone surprised?

L J

devdevil85 · 4th May 2007, 17:48

Well....360 may be the cheaper console to buy (in terms of just getting your hands on it), but Microsoft ain't making any money and that ain't good. I wonder if Sony is in the same boat in terms of really being in the red?, but then again how long has PS3 been out vs. 360? I bet the Elite did hurt them in terms of profit due to the R&D and marketing, etc. Also, Microsoft peripherals WOULD make them pure profit. I mean c'mon...a 20GB HD for $105 on Newgg for Christ's sake! Either way, I like hearing about the PS3 revision, but just like the article says, a firmware revision would probably take care of most of the add-on features needed to run it as more of a media server. Man more of that news makes me want to save up for one....., but then again the 65nm 360 v.2 is also knocking on my door so... who knows....

themax · 4th May 2007, 17:53

Sony isn't in as bad a boat as Microsoft, but Microsft's pockets are much deeper. MS absorbed the total losses of the original XBox (Which I don't believe EVER became profitable for them) and still went into development for the 360. Sony however is still raking in profits from the PS2 to offset PS3 losses.

CardJoe · 4th May 2007, 17:59

Quote:

Originally Posted by devdevil85

Well....360 may be the cheaper console to buy (in terms of just getting your hands on it), but Microsoft ain't making any money and that ain't good. I wonder if Sony is in the same boat in terms of really being in the red?, but then again how long has PS3 been out vs. 360? I bet the Elite did hurt them in terms of profit due to the R&D and marketing, etc. Also, Microsoft peripherals WOULD make them pure profit. I mean c'mon...a 20GB HD for $105 on Newgg for Christ's sake! Either way, I like hearing about the PS3 revision, but just like the article says, a firmware revision would probably take care of most of the add-on features needed to run it as more of a media server. Man more of that news makes me want to save up for one....., but then again the 65nm 360 v.2 is also knocking on my door so... who knows....

Microsofts problem is the Japanese market. Breaking even in six years without touching japan is quite an achievement - the 360 has sold very very well after all. Sony has a massive headstart in Japan, yet Bill Gates has never really been able to crack it over there.

valium · 4th May 2007, 18:42

The only peripheral I have noticed that is overpriced is the wireless adapter at 100$(USD)
I bought the other 2 contoller for my system for 75$(USD).

devdevil85 · 4th May 2007, 19:27

Quote:

Originally Posted by valium

The only peripheral I have noticed that is overpriced is the wireless adapter at 100$(USD)
I bought the other 2 contoller for my system for 75$(USD).

You don't think $105 for a measily 20GB HD is overpriced?

The wireless network adaptor is also way too overpriced, but the 360 controllers on the other hand are totally worth their $35 price. I love the 360's controller even though my friend has had some major issues with the rechargable battery packs.....they feel so much more expensive than the cheap NyKO's or MadCatz they have demoed at Targets and they sure stay charged for a good while when they're fully charged....

EQC · 4th May 2007, 20:52

IIRC, when the 360 first came out, the analysis of the controller said it was constructed from roughly $11 in parts.

So, while it may be "worth" $35 in terms of its functionality and what we're all used to paying for console controllers, it is in a sense overpriced in that there's potentially 200% profit built into each one.

Thats the problem with consoles -- they can get a pseudo-monopoly going and make prices artificially high. This convinces users that the price is fair since its what they've been seeing for 10 years. If, on the other hand, there were many manufacturers making controllers for the 360 (or the PS3 or Wii...or the original NES for that matter) and allowed to set their own price, prices would fall down around $15 or so. You might have to do a little homework to figure out which ones were cheap-o things made in sweatshops...but you'd be able to get a good controller for much cheaper than they sell for now.

Of course, then it'd take even longer for Microsoft to start making a profit on their consoles...and we'd have other problems to deal with.

devdevil85 · 4th May 2007, 21:15

Quote:

Originally Posted by EQC

IIRC, when the 360 first came out, the analysis of the controller said it was constructed from roughly $11 in parts.

So, while it may be "worth" $35 in terms of its functionality and what we're all used to paying for console controllers, it is in a sense overpriced in that there's potentially 200% profit built into each one.

Thats the problem with consoles -- they can get a pseudo-monopoly going and make prices artificially high. This convinces users that the price is fair since its what they've been seeing for 10 years. If, on the other hand, there were many manufacturers making controllers for the 360 (or the PS3 or Wii...or the original NES for that matter) and allowed to set their own price, prices would fall down around $15 or so. You might have to do a little homework to figure out which ones were cheap-o things made in sweatshops...but you'd be able to get a good controller for much cheaper than they sell for now.

Of course, then it'd take even longer for Microsoft to start making a profit on their consoles...and we'd have other problems to deal with.

I hear yah man. I know these companies overprice their products, but if people are willing to pay, then the prices will stay the same. I personally have bought many "off-brand" controllers for my PC and they have worked just as good as Logitech or Microsoft controllers that were double the cost. So again I understand where you're coming from, but again, you're paying for Microsoft's controller, not off-brand unknown manufacturer where the warranty would probably be 15 days and it would be impossible to contact them. Again, everyone has their own opinions and in the whole skeem of things I would rather spend more and make sure it worked the way I wanted it to.

Bladestorm · 4th May 2007, 22:06

I think the last cost estimate for building a PS3 I saw (some 3 months ago or so - its probably dropped a little now) was in the $850 range ? especially in japan (where Ken K dropped the price by another 20% below the normal price without telling the rest of the company, so I hear it) where they sell them for what $480 ish ? thats got to hurt, but theres little denying it will ultimately help the PS3's market share compared to selling them at cost or at a profit.

OremLK · 7th May 2007, 03:14

Bladestorm's numbers sound right based on what I've heard. I don't see how you could realistically expect Sony to be doing better than M$ with those kind of numbers... last I heard, Microsoft is actually making a profit on each 360 console sold now (though they still haven't broke even overall). In fact, Sony loses more money on each PS3 it sells than it costs Microsoft to even BUILD a 360.

4th May 2007, 11:32	#1
Tim S Pewlius Caesar bit-tech Staff Join Date: Nov 2001 Location: Ascot, Berks Posts: 18,021	Xbox 360 will make profit next year? http://www.bit-tech.net/news/2007/05...fit_next_year/ __________________ Tim on Twitter \| Tim's Blog \| Tim's Flickr The bit-tech Blog \| bit-tech on Twitter \| Join the bit-tech & Custom PC folding team (#35947)

4th May 2007, 11:50	#4
Tim S Pewlius Caesar bit-tech Staff Join Date: Nov 2001 Location: Ascot, Berks Posts: 18,021	It'll already be in the very early stages of development. For example, Nvidia was already working on GeForce 8800 BEFORE GeForce 6800 was launched. __________________ Tim on Twitter \| Tim's Blog \| Tim's Flickr The bit-tech Blog \| bit-tech on Twitter \| Join the bit-tech & Custom PC folding team (#35947)

4th May 2007, 13:49	#5
HugoB H to the U to the G to the O to the B Join Date: Dec 2006 Location: ThrustingReviews HQ Posts: 1,201	Lol, nice point Tim, shame ATI only started on the R600 last month... I wonder how long it'll take for Sony to make the same announcement with the PS3... __________________ TrustedReviews.com - things I write about for a job

4th May 2007, 14:07	#6
CardJoe Player Character bit-tech Staff Join Date: Apr 2007 Posts: 7,988	New PS models were announced today actually. The new PS is in development as more of a media platform __________________ this is joe's non-bit-tech blog

4th May 2007, 16:56	#11
Colonel Sanders Ultramodder Join Date: Jun 2002 Location: Middle of nowhere(in USA) Posts: 1,193	So basically MS is using their deep pockets to mangle yet another market? Why is anyone surprised? L J __________________ "Play a Windows CD backwards and hear satanic messages. Thats nothing, play it forwards and it installs Windows."

4th May 2007, 11:40	#2
themax Hypermodder Join Date: Dec 2005 Location: Tampa, FL Posts: 925	They are already working on the successor? And people bashed Sony for pitching the idea of PS4 lol. But no dout their accessories are making up a good portion of their profit, with the pricess most 360 add ons go for it's no wonder. I think introducing the elite might have pushed than back from hitting their target income and trying to get out of the black. I thought MS was already profitting, although very little from the 360 (it was either that or breaking even on cost to make vs current selling price).

4th May 2007, 11:41	#3
Gman22 Multimodder Join Date: May 2004 Location: U.S. Posts: 82	They were probably working on it before the 360 came out. Its a perpetual cycle.

4th May 2007, 15:36	#9
plug_in_ross Supermodder Join Date: Mar 2005 Location: Purgatory Posts: 492	So, is the Wii the only next-gen console to be making a profit at the moment? Something like $12 per console sold.

4th May 2007, 17:48	#12
devdevil85 Hypermodder Join Date: Nov 2006 Location: US of A Posts: 884	Well....360 may be the cheaper console to buy (in terms of just getting your hands on it), but Microsoft ain't making any money and that ain't good. I wonder if Sony is in the same boat in terms of really being in the red?, but then again how long has PS3 been out vs. 360? I bet the Elite did hurt them in terms of profit due to the R&D and marketing, etc. Also, Microsoft peripherals WOULD make them pure profit. I mean c'mon...a 20GB HD for $105 on Newgg for Christ's sake! Either way, I like hearing about the PS3 revision, but just like the article says, a firmware revision would probably take care of most of the add-on features needed to run it as more of a media server. Man more of that news makes me want to save up for one....., but then again the 65nm 360 v.2 is also knocking on my door so... who knows....

4th May 2007, 17:53	#13
themax Hypermodder Join Date: Dec 2005 Location: Tampa, FL Posts: 925	Sony isn't in as bad a boat as Microsoft, but Microsft's pockets are much deeper. MS absorbed the total losses of the original XBox (Which I don't believe EVER became profitable for them) and still went into development for the 360. Sony however is still raking in profits from the PS2 to offset PS3 losses.

4th May 2007, 18:42	#15
valium Supermodder Join Date: Oct 2003 Location: USA, TX Posts: 288	The only peripheral I have noticed that is overpriced is the wireless adapter at 100$(USD) I bought the other 2 contoller for my system for 75$(USD). __________________ V2 - AMD 4400+ x2, Geforce 7800 GTX, 2x512 Corsair PC3200XL, 2x74gb Raptors (Raid 0)

4th May 2007, 20:52	#17
EQC Multimodder Join Date: Mar 2006 Location: CA Posts: 220	IIRC, when the 360 first came out, the analysis of the controller said it was constructed from roughly $11 in parts. So, while it may be "worth" $35 in terms of its functionality and what we're all used to paying for console controllers, it is in a sense overpriced in that there's potentially 200% profit built into each one. Thats the problem with consoles -- they can get a pseudo-monopoly going and make prices artificially high. This convinces users that the price is fair since its what they've been seeing for 10 years. If, on the other hand, there were many manufacturers making controllers for the 360 (or the PS3 or Wii...or the original NES for that matter) and allowed to set their own price, prices would fall down around $15 or so. You might have to do a little homework to figure out which ones were cheap-o things made in sweatshops...but you'd be able to get a good controller for much cheaper than they sell for now. Of course, then it'd take even longer for Microsoft to start making a profit on their consoles...and we'd have other problems to deal with.

4th May 2007, 22:06	#19
Bladestorm Hypermodder Join Date: Dec 2005 Location: United Kingdom Posts: 682	I think the last cost estimate for building a PS3 I saw (some 3 months ago or so - its probably dropped a little now) was in the $850 range ? especially in japan (where Ken K dropped the price by another 20% below the normal price without telling the rest of the company, so I hear it) where they sell them for what $480 ish ? thats got to hurt, but theres little denying it will ultimately help the PS3's market share compared to selling them at cost or at a profit. __________________ Athlon 64 X2 3800+ @ 250x10 (1.475v) \| EVGA GTX 260 55nm SSC \| A8N-SLI Premium \| 2x(4GB) Corsair Twinx2048-PC3200C2 \| Asus Xonar DX \| Antec truepower 550w \| Akasa Eclipse-62 DDC12VPlus1, DD TDX, 3/8 tygon r3603 tubing, PA120.2, DD double floppy bay res

7th May 2007, 03:14	#20
OremLK What's a Dremel? Join Date: Mar 2007 Posts: 18	Bladestorm's numbers sound right based on what I've heard. I don't see how you could realistically expect Sony to be doing better than M$ with those kind of numbers... last I heard, Microsoft is actually making a profit on each 360 console sold now (though they still haven't broke even overall). In fact, Sony loses more money on each PS3 it sells than it costs Microsoft to even BUILD a 360.