Microsoft loses $400m because of Xbox One? NOT!

[Anthony112409p]

Xbox One Has Raked Up A $400 Million Loss For Microsoft in 8 Months

Why It's Perfectly Fine If Microsoft Has Lost Money On Xbox One [Updated] - Forbes

I hope these morons realize that, as best as I can tell, they have completely misrepresented and misinterpreted the numbers in Microsoft's report. From what I can tell as to the purpose of the numbers and sales figures provided, it is literally impossible to ascertain whether a loss has occured on Microsoft's part. Even then, Microsoft is not selling Xbox One's at a loss. Granted, the margin is slim, but there is no way that Microsoft has lost any money due to lagging sales of its console.

Why are many news outlets so eager to jump onto the 'Microsoft FAILS!' train time and time again? In this case, it isn't even merited or correct. Why are people so quick to misinterpret facts if it means the detriment of Microsoft?

 

[Anthony112409p]

Ok well I see that the Forbes article has been updated, or rather, corrected. Sort of...

 

[DavidinCT]

Keep in mind when these systems were released, they normally sell the systems for a bit of a loss. In the long run, they make it back 10 fold as costs come down with volume and software sales but, normally the systems cost more to make than the marketplace will sell them for.

Think of that PS3. that everyone was outraged when it hit for $599.99, it cost Sony $1024 per unit to make at that time but, No one would buy a $1099.00 console. Even with a Blu-ray player in it (this was released when blu-ray players were $700+ right after release).

It really could be that the hardware cost them more at this point then they sell it for...like I said, in the long run, they will make a crap load of money.

 

[Jas00555]

The systems had a profit margin, but marketing and getting exclusives like Ryse and Forza cost them 400 million more than they made through their small margins. I don't really see the problem with that.