Nintendo Wii-U

[Devil_666]

Wii is #1 and the winner of the 7th generation console wars. Period.

And FYI: The reason why Sony and Microsoft aren't releasing any new consoles (even though come November it'll be the 5 year point for both) is because BOTH lost so much money on their 7th generation consoles (Xbox 360/PS3) that they're not willing to risk losing even more money on another console launch yet.

 

[darthviper107]

The Wii used to be selling twice as much as the Xbox or PS3 so the fact that it's now behind both is a pretty big deal.

And actually, Microsoft hasn't lost all that much money, they've been making quite a bit of profit for years now, Sony on the other hand lost more money on the PS3 (since even at $600 they didn't actually make money) than what they ever made on the PS2

The reason they haven't announced new consoles is because it would be a bad decision. For one, all they have to do is wait and they can release better consoles than Nintendo for a lower cost, which means Nintendo will be in a bad situation again where games come out on Microsoft and Sony consoles and not on Nintendo. And they're both still making money off their current consoles (as I said before, Xbox is selling better than it ever has before). Plus, they both have a good amount of games setup for at least through 2012 so they've got plenty of material.

 

[Devil_666]

Microsoft hasn't lost all that much money, they've been making quite a bit of profit for years now

No idea where you're getting that!? From November 2005 when the console launched to the 4th quarter of their 2009 fiscal year Microsoft lost over $1.5 billion dollars on just the Xbox 360. They didn't post any kind of "profit" until 2010.

And it's hard to consider the money they're making now as even a profit since it hasn't covered the losses they've already incurred for both the original Xbox (over a $4 Billion loss) and then the Xbox 360.

 

[darthviper107]

No idea where you're getting that!? From November 2005 when the console launched to the 4th quarter of their 2009 fiscal year Microsoft lost over $1.5 billion dollars on just the Xbox 360. They didn't post any kind of "profit" until 2010.

And it's hard to consider the money they're making now as even a profit since it hasn't covered the losses they've already incurred for both the original Xbox (over a $4 Billion loss) and then the Xbox 360.

No idea where you've been getting your numbers--they've past the point where they got more than their initial loss due to hardware cost several years ago, like 2008 or something.

 

[Devil_666]

They lost over a billion just in 2007 to fix all the bricked consoles/rrod consoles people had.

 

[THX-182]

Heh you guys are arguing over stats that you have no stock in. Just buy the stuff you like and enjoy them while they last. It's all fun guys.

 

[Devil_666]

Who's arguing!? It's a discussion forum. We're discussing stuff. Kinda how these forums work.

 

[darthviper107]

They lost over a billion just in 2007 to fix all the bricked consoles/rrod consoles people had.[/QUOTE

That wasn't 1 billion all at once, it was extending the warranty to 3 years for every console and an estimated cost for what that might mean, if it ended up being 1 billion, it would be across the console lifetime.

 

[Devil_666]

No.. they lost 2.2 billion total for just 2007 bro. 1 billion for that extension and 1.2 just in general.

 

[darthviper107]

No.. they lost 2.2 billion total for just 2007 bro. 1 billion for that extension and 1.2 just in general.

So they replaced 2.5 million Xbox consoles in 2007? Because that's what you're saying

1 billion is for the extension of the RROD replacement warranty to three years--for all Xboxes, future and past.

 

[Devil_666]

No clue how many replacements they had. But with their failure rate I wouldn't doubt that estimate especially out of 50 million+ units sold.

Either way. completely disregarding that 1 billion for the extended warranty, the Xbox 360 still lost over a billion dollars. Again, for 2007 they had a 2.2 billion dollar loss.

 

[Shropt]

Interesting discussion. Mind providing links for either of your points? I believe that both companies have lost quite a bit of money but I don't see that as the reason for the wait for a new console.

 

[Karma]

add in xbox live gold subscriptions and i'm sure MS is in profit

 

[NosferatuBill36]

I remember reading quite a few articles from the New York Times and Forbes about Microsoft making a profit for the last couple of years.

Don't remember how long ago it was when I read them, but it may have been for the last quarter results.

 

[Devil_666]

I guess it depends on how you define "profits".

For me, if you go into a casino and lose $5000, but then win $100. You're still $4900 in the hole. But some people might look at that $100 as a "profit". I think that's the breakdown we're having in here.

I'm sure the Xbox 360 is making a "profit" now with the lowered costs of manufacturing as opposed to when it launched (and up until like 2007-2008) when Microsoft was losing money on every console sold.

But that "profit" still doesn't cover the losses they incurred originally. And I'm strictly talking about Xbox 360 sales. Not software, not Kinetic, not accessories. Just Xbox 360.

So it doesn't matter if Microsoft is making $30 million here and $30 million there from Xbox 360 sales now. They still haven't covered that $3 Billion + loss they initially had with the console.

Is Microsoft making money from Xbox 360 games, Kinetic and accessories for their console? Absolutely. But are they actually making a profit from Xbox 360 sales? Nope. Not until they make enough money strictly from console sales to cover that initial debt. Until then.. the Xbox 360 is a money pit. Just like the original Xbox that lost Microsoft over $4 billion.

 

[darthviper107]

Actually, yeah they have already covered their initial loss on the console. I can't find the actual article from then, but there were others talking about how they expected in 2008 to reach the point where they were actually making money (meaning, they paid for their losses and are now actually making profit)

The game industry makes over $20 billion a year just in the U.S. I'm sure Microsoft would have made more than $3+ Billion by 2008

 

[Devil_666]

they expected in 2008 to reach the point where they were actually making money (meaning, they paid for their losses and are now actually making profit)

Nope. Microsoft expected by 2008 that they would making money off of Xbox 360 sales meaning the sale price would finally be more than the production cost per console. It does not mean that they expected to have paid off their losses by 2008. It just means that they expected to no longer be losing $10 per Core Xbox 360 and over $200 per Pro Xbox 360 by 2008.

The game industry makes over $20 billion a year just in the U.S.

And that's primarily from software/accessories. Not consoles.

 

[darthviper107]

Nope. Microsoft expected by 2008 that they would making money off of Xbox 360 sales meaning the sale price would finally be more than the production cost per console. It does not mean that they expected to have paid off their losses by 2008. It just means that they expected to no longer be losing $10 per Core Xbox 360 and over $200 per Pro Xbox 360 by 2008.

Nope, it meant that they were actually making profit and finished covering their loses.

 

[Devil_666]

Nope.

 

[darthviper107]

So how 'bout that Wii U?

Anyone think it's going to be any good? Do you think that they'll wait until next E3 for full details or do their own presentation before then?