____/ Mark Kent on Tuesday 04 September 2007 19:19 : \____
> Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> espoused:
>> ____/ Jim Richardson on Friday 17 August 2007 04:59 : \____
>>
>>> -----BEGIN PGP SIGNED MESSAGE-----
>>> Hash: SHA1
>>>
>>> On Thu, 16 Aug 2007 09:22:12 -0700,
>>> The Ghost In The Machine <ewill@xxxxxxxxxxxxxxxxxxxxxxx> wrote:
>>>> In comp.os.linux.advocacy, Jim Richardson
>>>><warlock@xxxxxxxxxx>
>>>> wrote
>>>> on Wed, 15 Aug 2007 23:28:40 -0700
>>>><od7dp4-911.ln1@xxxxxxxxxxx>:
>>>>>
>>>>> On Wed, 15 Aug 2007 17:09:01 -0400,
>>>>> Capt Morgan <rum@xxxxxxxxx> wrote:
>>>>>>
>>>>>> "[H]omer" <spam@xxxxxxx> wrote in message
>>>>>> news:j2oap4-lii.ln1@xxxxxxxxxxxxx
>>>>>>> Verily I say unto thee, that Roy Schestowitz spake thusly:
>>>>>>>
>>>>>>>> MS cuts Xbox 360 prices Down Under
>>>>>>>>
>>>>>>>> ,----[ Quote ]
>>>>>>>> | Microsoft has today slashed the price of the Xbox 360 in Australia,
>>>>>>>> | bringing the basic Core model down to the same price as Nintendo's
>>>>>>>> | globally popular Wii console.
>>>>>>>> `----
>>>>>>>>
>>>>>>>> http://www.reghardware.co.uk/2007/08/15/ms_oz_xbox_price_cuts/
>>>>>>>
>>>>>>> Good grief! MS were already making a massive loss with this predatory
>>>>>>> and immorally under-priced "loss leader" *before* the price cut.
>>>>>>
>>>>>> Evidently this [M]oron doesn't realize that Microsoft has made a profit
>>>>>> on every XBox360 they've sold for over a year now. It's Sony that's
>>>>>> losing HUGE amounts of money on every console they sell.
>>>>>>
>>>>>
>>>>>
>>>>> An interesting claim, got any evidence that MS is making money on the
>>>>> Xbox360 hardware sales?
>>>>>
>>>>
>>>>
>>
http://www.techspot.com/news/23612-microsoft-makes-tiny-profit-on-xbox-360-hardware.html
>>>>
>>>> Through reduction in manufacturing costs, Microsoft
>>>> has managed to bring the cost of the Xbox 360 to a
>>>> zero loss, if not a slight profit.
>>>>
>>>> (One wonders if this is before or after the little problem
>>>> relating to the console overheating. The article is dated
>>>> Nov 2006.)
>>>>
>>>> --
>>>> #191, ewill3@xxxxxxxxxxxxx
>>>> Useless C++ Programming Idea #992381111:
>>>> while(bit&BITMASK) ;
>>>>
>>>
>>>
>>> Not to mention the $1,000,000,000 charge they took against Xbox360 to
>>> pay for extending the warranty period on the ones dying by the score.
>>>
>>> So I'd say that no, the Xbox360 is not making MS any profit on the HW
>>> sales. unless they ignore the cost side of the ledger entirely.
>>
>> Remember, Jim, that it's not about /making/ money, but it's about making
>> sure your rivals cannot make any until they run out of business. Intel uses
>> similar tactics to ensure AMD is unable to innovate, let alone gain market
>> share. They play with their pockets, not with their skills.
>>
>
> They will never make money on the XBox now; the only possibility is to
> minimise the losses by perhaps selling a few more.
>
No, they are losing money when they sell these units. After the price drops,
it's even worse. Unless they can get a large enough userbase to deliver
content to (VoD, Games), the XBox will continues to be a money sink.
See the SeekingAlpha article on a "Broken Strategy".
--
~~ Best of wishes
Roy S. Schestowitz | Useless fact: Brazil spans 47.8% of S. America
http://Schestowitz.com | Free as in Free Beer | PGP-Key: 0x74572E8E
Cpu(s): 27.3%us, 4.8%sy, 1.0%ni, 62.1%id, 4.4%wa, 0.3%hi, 0.2%si, 0.0%st
http://iuron.com - semantic engine to gather information
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