"A vision does not take 7 years to finally break even on a yearly basis after you have lost $6 Billion."
First off, your numbers are off. The classic xbox launched 11/01. Work may have started earlier but you don't earn sales until the product comes out. Profitability is expected in 06/08, not 11/11. So you are off by 3.5 years when you say it took them "10 years" to make a profit.
Also, the last stat I saw said an estimated 5 billion lost, not 6 billion. Finally, the hardware is now making a profit for them, and the chip size reduction will only further that.
Even using your numbers of $6b over 10 years, that is only 250m per quarter. That's basically nothing to MSFT. If they can invest pocket change and get big returns down the road, why not?
"So investors would be right to be angry at Microsoft."
The last I checked, investors are pretty darn happy with MSFT's stock as a whole. As of today, they are within $1 of their 52 week high.
Maybe you should check your facts. I agree with above. It's typical US sentiment. Where is my instant gratification? I didn't get rich quick, any setback is certain doom, kill the show after two episode if the ratings don't meet expectations, etc. etc.
I have no interest in either format that offers little value over DVD, and has less restrictions. I want to PLAY GAMES and view media off my PC about (300 gig). So let's do the REAL math.
$600 PS3
$310 PS3 notebook drive to match/hold my existing desktop PC media (and I have to reencode and copy/duplicate the media)
$40 HDMI cable to match resolution of the given cable of 360
$0 For the great PS3 "online service" for the few online games the PS3 has
$400 Premium 360
$40 WAP and wired router, lets me put 4 devices on a wireless network easily
$200 For XBOX Live for 5 years when bought in yearly amounts (just shop a little)
$10 USB multi-reader card to match PS3's
Hmmm, I have $300 extra to burn. Perhaps for that HDDVD drive and a couple of movies. Also, the 360 has infinitely better online support and a lot better games (more games in 1080p, more online games, more exclusives i.e. dead rising, lost planet, gears of war, Halo 3, Lumines, viva pinata, star trek legacy, chromehounds)
Oh, I could even write my own game for the 360 if I wanted too.
Face it, the PS3 sucks for anything other than a BlueRay player, an expensive UNIX box or running folding @home.
Also, the above story is three months old, so MSFT is likely to have their 65nm chip done. Odds are the physical hardware costs are less than the MSRP at this point. Not bad at all for a powerful console 1.5 years old.
If they keep their market share in this race, and are first to market with the next generation, Sony will be in a world of hurt.
If MSFT was smart, they would try to get the next XBOX out in 5 to 6 years. Get a new system that blows the PS3 away technically, and make money on 2 consoles at the same time like Sony does with the PS2 and PS3. They can do it, if they make writing a game for each similar enough.
They hyped Halo3 to death. It's going to be out Holiday '07 for the prime spending season. To say otherwise is just to make it appear it's not delayed.
Too bad Vista doesn't offer other built-in features: Web-filtering for always-on internet connections, the porn collection on the hard drive, R rated movies going in the DVD drive, etc. etc.
Then finally parents will have a computerized baby sitter to replace the TV.
Slashdot Mirror
"A vision does not take 7 years to finally break even on a yearly basis after you have lost $6 Billion."
First off, your numbers are off. The classic xbox launched 11/01. Work may have started earlier but you don't earn sales until the product comes out. Profitability is expected in 06/08, not 11/11. So you are off by 3.5 years when you say it took them "10 years" to make a profit.
Also, the last stat I saw said an estimated 5 billion lost, not 6 billion. Finally, the hardware is now making a profit for them, and the chip size reduction will only further that.
Even using your numbers of $6b over 10 years, that is only 250m per quarter. That's basically nothing to MSFT. If they can invest pocket change and get big returns down the road, why not?
"So investors would be right to be angry at Microsoft."
The last I checked, investors are pretty darn happy with MSFT's stock as a whole. As of today, they are within $1 of their 52 week high.
Maybe you should check your facts. I agree with above. It's typical US sentiment. Where is my instant gratification? I didn't get rich quick, any setback is certain doom, kill the show after two episode if the ratings don't meet expectations, etc. etc.
I have no interest in either format that offers little value over DVD, and has less restrictions. I want to PLAY GAMES and view media off my PC about (300 gig). So let's do the REAL math. $600 PS3 $310 PS3 notebook drive to match/hold my existing desktop PC media (and I have to reencode and copy/duplicate the media) $40 HDMI cable to match resolution of the given cable of 360 $0 For the great PS3 "online service" for the few online games the PS3 has $400 Premium 360 $40 WAP and wired router, lets me put 4 devices on a wireless network easily $200 For XBOX Live for 5 years when bought in yearly amounts (just shop a little) $10 USB multi-reader card to match PS3's Hmmm, I have $300 extra to burn. Perhaps for that HDDVD drive and a couple of movies. Also, the 360 has infinitely better online support and a lot better games (more games in 1080p, more online games, more exclusives i.e. dead rising, lost planet, gears of war, Halo 3, Lumines, viva pinata, star trek legacy, chromehounds) Oh, I could even write my own game for the 360 if I wanted too. Face it, the PS3 sucks for anything other than a BlueRay player, an expensive UNIX box or running folding @home.
Yes, thank you, my point exactly. Here is the link you mention: http://www.gamasutra.com/php-bin/news_index.php?st ory=11833
Also, the above story is three months old, so MSFT is likely to have their 65nm chip done. Odds are the physical hardware costs are less than the MSRP at this point. Not bad at all for a powerful console 1.5 years old.
If they keep their market share in this race, and are first to market with the next generation, Sony will be in a world of hurt.
If MSFT was smart, they would try to get the next XBOX out in 5 to 6 years. Get a new system that blows the PS3 away technically, and make money on 2 consoles at the same time like Sony does with the PS2 and PS3. They can do it, if they make writing a game for each similar enough. They hyped Halo3 to death. It's going to be out Holiday '07 for the prime spending season. To say otherwise is just to make it appear it's not delayed.
That's what I'm here for, to make their life easier.
Too bad Vista doesn't offer other built-in features: Web-filtering for always-on internet connections, the porn collection on the hard drive, R rated movies going in the DVD drive, etc. etc.
Then finally parents will have a computerized baby sitter to replace the TV.