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ckcsaber
11-18-2002, 05:20 PM
Microsoft yesterday filed its results for the financial quarter that ended on September 30, and the new report provides a clearer breakdown of how the company's individual divisions are performing. Microsoft's home and entertainment division--which consists of its Xbox, PC games, consumer software, and TV groups--accounted for a loss of $177 million for the period of July 1 through September 30. During the same period the previous year, before the Xbox launched, the same division had losses of $68 million.
The Xbox is the primary focus of the division, and Microsoft's report emphasized the impact of the marketing costs involved with the promotion of the console on the financial performance of the division. While the home and entertainment division posted greatly increased revenues of $485 million for the quarter, the high costs involved in marketing Xbox products were cited as the primary factor behind the division's increased losses. Microsoft has said it plans to spend $2 billion to establish the Xbox console in the market, and it no doubt has the money to spend. Increased profits in other divisions completely offset Xbox-related losses, and the company posted a net profit of $2.7 billion for those three months.





Here is the link http://gamespot.com/gamespot/stories/news/0,10870,2897744,00.html


I guess xbox isn't doing as well as they hoped. When xbox 1st came out it was going to "change gaming forever" but look at the sales.

Elessar-Eärfalas
11-18-2002, 05:22 PM
ya they did so much advertising for it, and i guess there getting nothing back...aw well, i stick to playstation;)

Agen
11-18-2002, 05:28 PM
what advertising? lol

Taos
11-18-2002, 05:28 PM
Kinda interesting news. Not surprising......but I'm still gonna keep my Xbox! Don't know for how much longer though.......we'll have to see what a new cpu is gonna cost me :D

-s/<itzo-
11-18-2002, 06:41 PM
you think XBOX will end up like Sega Dreamcast????

ET Warrior
11-19-2002, 01:00 AM
No, the xbox won't go the way of dreamcast. One, because microsoft can afford a lot more than 177 million dollar losses. And because around christmas next year there'll be a little thing called Halo 2. Which will do wonders for their sales and profit margins i have no doubt of. Xbox simply needs time to get onto it's feet. It's a new console from a company new to consoles. Give them time.

TheWhiteRaider
11-19-2002, 01:16 AM
I am not shocked. Oh well.

Toonces
11-19-2002, 02:49 AM
I agree with ET, Microsoft has so much money it's silly. $177 million IS alot of money, but MS can afford to lose it, especially since they are the new kid to the console world.

I hate MS with a passion, but they have the only good Online Hockey (nhl2k3) game this year on the XBox, and that's actually enough of a reason for me to get one :)

STTCT
11-19-2002, 03:27 AM
Well - Microsoft does have the money to invest in the establishment of their new console. It is a very competitive market out there and its hard to start out. Sony and Nintendo already had systems and games established - so of course when X box came out a lot of people were put off because of the lack of titles...and it is an expensive console to buy. Games are expensive too. Once microsoft gets some good titles out there - exlusive to its system - I think things are going to pick up for it. I do have fears about it turning into Sega Nightmare though. That's why I wanted a PS2. I think a lot of people fear that about the X and that's why not many will choose to invest in that. Hard to say - I do think the internet thing will be a flop though. How many parents are gonna wanna pay money every month for their kid to use their 50 dollar game and their 200 dollar console. I'd say...HA go invite a friend over..but no online play. Maybe the older crowd will like it...but who has the time?

BCanr2d2
11-19-2002, 06:38 AM
Reported figures also state that Microsoft have $5 Billion put aside for the XBOX, to develop it, and it's successor......


Barely ANY console actually makes any money to begin with, the main money is got from the sales of games................

Nintendo is rumoured to be heading out of making consoles, and only games.
Sony has the PS2, which had the loyal fanbase of the PSX....
I assume the XBOX2 v PS3 is going to be where the real war will begin. To me, I see the Freon project, which is probably going to be part of the XBOX2, is where MS may gain the upper hand, make it a lot more than a console, make it a digital video recorder too......

C'jais
11-19-2002, 09:17 AM
A lot of interesting points from all of you.

I don't really care though, as long as strat/FPS games aren't made for consoles and you can't download add ons etc, then I'm just not going to get one.

Oh, mice and keyboards works far better for game control than gamepads. Halo is hideous to play with that controller.

ET Warrior
11-19-2002, 09:59 AM
I don't know if it'll start that way, but Xbox live (xbox online) will eventually be able to download add-ons and whatnot.

And Halo is perfectly fine to play if you have a controller S.. They're the greatest.

C'jais
11-19-2002, 10:09 AM
Originally posted by ET Warrior
I don't know if it'll start that way, but Xbox live (xbox online) will eventually be able to download add-ons and whatnot.

And Halo is perfectly fine to play if you have a controller S.. They're the greatest.

What's a controller S..? A controller system? :confused:

Currently, no controller can outdo a mouse's precision. The fact that you're using both a mouse (for looking) and a keyboard for moving makes it the best way to control a first person view.

Internet may be great, but it's still missing FPS's and deep ass strategy games with a whole keyboard layout for commands.

STTCT
11-19-2002, 10:14 AM
agh - that x box controller its sooo big...there are so many buttons - I tried playing halo for the first time a couple weeks ago and that controller was something else!

Darth Simpson
11-19-2002, 10:46 AM
Nintendo is rumoured to be heading out of making consoles, and only games.

Nintendo has never said that. In fact, they've stated the exact opposite. I'll find a link later.

Xbox Live costs $50 for one year of use. No monthly fees in that time period. Live is certainly one of the biggest selling points of the Xbox. I sure as hell want to play console games online.

But the little idiots out there rule the market I guess, with their "OMG XBXO SUXXORZ ROFLELZOLZO!!!!!111" way of thinking. Sad, but true.

Oh yeah, Controller S is the new smaller Xbox controller.

STTCT
11-19-2002, 10:57 AM
Hey now....I'm not saying the x box sucks. I thought it was a monthly fee for the xbox live...guess i was mistaken. But is that an add on...like you already have to have a dsl or existing connection on top of the fee. Or how does that work. I'm just saying that when my son wants to play his games Live on Xbox 5!? That I'm going to have to say...NO way. That's a lot of dough to shell out even if it is only $50 (it is better than the 10-15 dollar a month subscriptions I'd say though).

I thought Halo was one of the biggest selling points of the x box and the "no memory" cards required...and the faster loading time than PS2? I didn't think Xbox live was a big selling point....

Darth Homer
11-19-2002, 10:59 AM
The xbox was losing money in the first place...no matter how many systems they made or sold, the cost of making one was higher than the selling price. They figured that accessory sales and game sales would make up the difference. So far, MS has had only one game that was immensely popular, Halo. All the other really cool games (DOA3, Madden 2003, etc.) have been made by other companies...MS is losing $$ because the more systems they make, the more they loose money on the components.

Sivy
11-19-2002, 11:38 AM
I’m not surprised they’re losing money, the amount they invested in it. and with all the bad press everyone is buying a PS2 instead.

Darklighter
11-19-2002, 11:44 AM
Personally, I never had high hopes for the XBOX. Sales in Europe and Japan upon release were appalling, even though it did alright in the US, overall they lost a lot of money they were expecting to make from it. After that it has just gone downhill. I wouldn't be surprised to see the XBOX's price drop another £50-100 by mid next year.

C'jais
11-19-2002, 11:48 AM
So what makes a PS2 that much better than an XBOX?

From what I understand, the xbox can run the same games, only better.

-s/<itzo-
11-19-2002, 12:47 PM
Originally posted by Cjais
So what makes a PS2 that much better than an XBOX?

From what I understand, the xbox can run the same games, only better.


well i got both systems (ps2 & xbox), XBox even though it has better graphics than PS2 (not that far off from PS2), it doesn't have the wide range of games that PS2 consist of. And thats what makes PS2 the top competitor of all systems.

and plus PS is been around for quite a while that the consumers feel safe with it.

C'jais
11-19-2002, 12:53 PM
Originally posted by -s/&lt;itzo-
well i got both systems (ps2 & xbox), XBox even though it has better graphics than PS2 (not that far off from PS2), it doesn't have the wide range of games that PS2 consist of. And thats what makes PS2 the top competitor of all systems.

and plus PS is been around for quite a while that the consumers feel safe with it.

I know what you mean.

However, I was asking for which the better console was - not the line-up of games.

So far as I can see, we both agree that Xbox is the better system, but it sadly hasn't got the die hard customers nor the game developers that PS2 inherited from the established fans of the original one.

Note that I'm not an Xbox "fanboy" - I think every console thus far is inferior to a computer.

Darth Homer
11-19-2002, 01:20 PM
Originally posted by Sivy B
I’m not surprised they’re losing money, the amount they invested in it. and with all the bad press everyone is buying a PS2 instead.

Can you explain to me what you mean by bad press? I don't remember that much bad about the xbox...I used to sell these and had far more complaints about the ps2 than xbox (I've been out of that job for about 3 months now). If you could explain, I'd appreciate it.

Also, I'd like to point out that the ps2 was out a year before xbox, so it only stands to reason that they have a larger game library (also, Sony tied up developers in contracts that wouldn't allow them to make games for competitors before finishing the contract w/ them...pretty smart move, really).

Kstar__2
11-19-2002, 02:54 PM
well, lets hope that they will make the price for a XBOX lower:D

ckcsaber
11-19-2002, 03:40 PM
I actually like the XBOX system but am not suprised at the losses. It has not been a favorite of many ppl since the start but it does have good games. HALO is probably one of the best games I have ever played and I stick to the system just because of HALO. XBox live so far seems the most promising online console network so far. Much better than the PS2's online stuff.

PhantomHelix
11-19-2002, 03:46 PM
i like PS2 better. XBOX has cool games, but the controller is too friggin big.........

Toonces
11-19-2002, 04:27 PM
heh, I actually think the XBox controler is just about the right size, alough I may have bigger hands than the majority of people here. I really loved the Dreamcast controler too and the XBox one feels almost exactly like it. The good thing is you can buy thirdparty controlers to fit anybody's prefrence :D

Darth Simpson
11-19-2002, 05:25 PM
It's pointless bitching about the big controller now. MS is shipping the smaller Controller S with all new systems.

BCanr2d2
11-20-2002, 04:55 AM
The main selling point of the PS2 is that they have such a large game library, that any half successful game can be put into their "platinum price" range pretty quickly. So decent games are half the price, even if they are 6-12 months old, that is where people are getting the PS2 is a better buy option.....
One example was Moto GP - the older, non-official and different game released for the PS2 went "platinum price" as the newly named Moto GP world championship game was released, trying to ambush those to believe they were the same game, but half the price on a PS2.......

The PS2 had at least an 18-24 month headstart on the XBOX. Contrary to all reports, the XBOX has had a better launch than the PS2 - it has posted the major milestones along the way quicker than the supposed huge selling PS2. The PS2 took off once the Gran Tourismo games were on the console.

As for advertising, I think MS hasn't done that much of it here, it seems to me like they are relying on the PC public to buy them, while Sony advertises to those that don't have one, and get the extra sales.

As for the standard of the game graphics, they have had the 24-36 months to work on the graphics for these games. With the development units sent to software companies, the XBOX has plenty of room to move with graphics, they haven't scratched the surface yet....

Taos
11-20-2002, 05:48 AM
I just found out yesterday that the first year of the Xbox live is free. Meaning you have to pay the original $50 to get it, but the service is free for the first year!! :D



http://www.ebgames.com/ebx/ads/shops/XBLiveStarter/



Thx to Mercatfat!

Lunatic Jedi
11-21-2002, 03:05 AM
I'm already on Xbox live, under the gamertag of Pyro Lunatic.

PHEAR MEH!