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Reader Comments (16)

Posted: Mar 12th 2008 3:50PM FordGTGuy said

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With the Attach Rate and sales number of the Xbox 360 I can believe it.
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Posted: Mar 12th 2008 3:43PM (Unverified) said

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and any business student with remote knowledge of how the gaming industry works will tell you that microsoft needs to extend this console cycle as long as possible.
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Posted: Mar 12th 2008 3:48PM bluemanrule said

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As a former business student, I can tell you that even with low profit margins, a 42% increase in revenues substantially affects the bottom line. Remember, MS is rolling on 2-3 consecutive quarters of profit. They'll need to extend that another 20-30 months to "win" this generation.
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Posted: Mar 12th 2008 3:52PM (Unverified) said

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Did Ken Weeks get hired back here and change his name to Terrence Stasse?
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Posted: Mar 12th 2008 3:54PM DeceasedFriend said

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They don't need to make money, they're Micro$oft! They just throw themselves into a new market for the hell of it. lol

42 is a good number, though...
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Posted: Mar 12th 2008 3:55PM (Unverified) said

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Wow, the business students really came out of the woodwork for this one!

And who's Ken Weeks, and why does that matter?
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Posted: Mar 12th 2008 3:59PM (Unverified) said

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Ken used work at X3F and seemed to post a lot of anti MS stuff and flame bait. This news post seems like flame bait to me.
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Posted: Mar 12th 2008 4:02PM (Unverified) said

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It wasn't intended to be flame bait, I just think it's a bit silly to champion revenue when profit is the goal of business.

But then I'm an art student, not a business student.
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Posted: Mar 12th 2008 4:11PM (Unverified) said

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Well, the two are not unrelated you know.
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Posted: Mar 12th 2008 4:16PM Softserve said

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Yeah, but there's also clearly a reason why MS never actually references the profit margins. Let's not be totally oblivious to that.
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Posted: Mar 12th 2008 4:19PM compboss17 said

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I think Microsoft understands the difference between profit and revenue, but I don't think that was the point of their statement. The point of their statement was to show how much better they're doing then the competition, in which case, profitability is irrelevant.
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Posted: Mar 12th 2008 4:21PM ZEBRA NINER said

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Yeah Terrence... you freakin' flame baitin' son of a bitch! You get off on starting little flame wars? Sitting in front of your computer pleasuring yourself to the heated debates that you cause!?

haha! ;).

Companies are always going to spin everything in their favor, it's the way of the world!
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Posted: Mar 12th 2008 5:11PM jkdoug said

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Microsoft has to be making more profit on the Xbox 360 than Sony is on the PS3, but I highly doubt either is beating Nintendo on the Wii. Production costs on the Wii have to be lower than the other systems, which should translate directly into more profits, right? If only they'd actually make and ship enough units that I could find one in the damned store!!
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Posted: Mar 12th 2008 6:35PM Synnyr said

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@jkdoug

You do know Microsoft was losing $715 per console when 360 was released.

Sony was losing $307 per console, when it was released.

Do the math.
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Posted: Mar 12th 2008 11:35PM (Unverified) said

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@syn

Source? I'm fairly sure microsoft's console cost around 700 to make for them at launch, not selling at 700 for loss....
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Posted: Mar 14th 2008 1:50AM (Unverified) said

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Losing $715 dollars, lol. That would mean it cost them over $1000 to make one? lulz.
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