____/ Mark Kent on Sunday 01 July 2007 12:21 : \____
> Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> espoused:
>> ____/ nessuno@xxxxxxxxxxxxxxxxxxx on Saturday 30 June 2007 20:37 : \____
>>
>>> w!
>>>>
>>>> > Best Wishes, N.
>>>>
>>>> The Xbox 360 is expected to make Microsoft a profit in 08.
>>>>
>>>> --
>>>> Mike
>>>> Scottish....and proud of it
>>>
>>> Could be. I prefer not to make predictions. I hope this one (about
>>> Xbox profitability) is better than Ballmer's oath to bury Google, or
>>> Gates' to eliminate spam within two years. If it is, it will be
>>> interesting to see if Xbox can really hold up to the competition.
>>>
>>> Microsoft has some smart people, I know some of them. If their
>>> products fall short of technical excellence, it has to come from top
>>> management.
>>
>> I'll go further and say that wrt the XBox, making a quarterly profit (they
>> currently lose $200-300 million per quarter, IIRC) would not mean that a ~$6
>> billion loss can simply be erased. They are in business for the investors.
>> They could argue that XBox360 is there to take over the living room, but as
>> it stands, Blu-Ray is at a better position to gain adoption. They might have
>> to include Blu-Ray support using an expensive peripheral.
>>
>
> You really need to look at the whole-life cost of the programme, too.
> If they XBox has been around for, say, 3 years, and has lost 0.8 billion
> per year, plus the costs in initial development, then it would have to
> make an annual profit for several years in order to even break even, let
> alone make an overal profit.
>
> Personally, I very much doubt that it can ever make enough money before
> it needs to be replaced with a more up to date model, when considering
> the rate at which it is losing money, plus the huge failure rates and so
> on.
XBox Elite has apparently not resolved the issue and it's more of a rebranded,
renamed (and slightly upgraded) version. The rumoured (already cautiously
confirmed, IIRC) XBox 720 might give them a chance, but wait and see what
XBox360 ownership think about falling a generation behind quite so early in
the lifecycle.
--
~~ Best of wishes
Roy S. Schestowitz | Useless fact: the buttocks is the largest muscle
http://Schestowitz.com | RHAT GNU/Linux | PGP-Key: 0x74572E8E
run-level 2 2007-06-16 18:32 last=
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