360°

Microsoft makes a huge '$28' on each Xbox One – But, NOT REALLY

Technology market watcher IHS tore into the components of the new gaming machine, and – judging by the Xbox One's hardware and manufacturing costs – believes Microsoft is taking a hit on hardware sales in hope of revenues from licensed games and Live subscriptions.

This follows a time-honored tradition in the console market of selling games machines at a loss, simply to get as much gear as possible into homes, and then make back the money on royalties from third-party developers. It's claimed Sony makes "about $18" on each $400 PlayStation 4, for example.

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theregister.co.uk
bicfitness3828d ago

Even if they took the Kinect (2) out, they still would be taking a loss if they matched Sony's price. With weaker hardware. My God, Redmond's Xbox division needs to be cleaned right out. Its an absolute abomination of a product. Strange thing is that they had this upcoming gen in the bag if only they'd released an actual 360 successor: well-specced hardware (no failures this time around, hopefully), streamlined Live (instead we have this party system that is literally a step back), and focused on gaming.

The geniuses at Redmond missed the mark on every one of these points. Every, single, one. Incredible.

DoctorJones3827d ago

How much is a ps4 with a camera?

djplonker3827d ago

I can get a ps4 and a camera for £370 the xbone is £429....

source: gamestop uk

ps4: £329.99

camera: £39.99

MizTv3827d ago

$459.99 in ma
That's without tax

XisThatKid3827d ago

U.S. About $493.90 here in New York

Docknoss3827d ago

And the Eye is the equivalent of the original kinect at best

Battlefieldlover3827d ago

I got it for 467 with no taxes and free shipping (amazon prime).

SilentNegotiator3827d ago (Edited 3827d ago )

Who cares? The PS4 camera isn't going to sell well anyway, since people actually have a choice.

+ Show (3) more repliesLast reply 3827d ago
danny8183827d ago

they are professionals. I honestly think the xbox division rushed the xbox one to compete with the ps4... The xbox brand is probably gonna be sold. They dumoed so much on marketing and Microsoft doesn't care about the gamers so it wont hurt them to sell it off

Docknoss3827d ago

PlayStation will be sold off before the xbox brand, that's more fact than fiction.

dragon823827d ago

I wouldn't count on it. Sony has no plans to sell the PlayStation brand. There are execs at Microsoft who are already toying with the idea of selling off the Xbox division. I am not saying it will happen either way but I would lean towards Xbox being sold off long before PlayStation.

OrangePowerz3827d ago

MS with their new idea of delivering the same experience on every platform is questionable as well.

Metro UI being the prime example. The OS works on touch devices, it`s ok on the Xbox and horrible on desktop PCs, but they deployed it across all devices to have their vision of one UI for all devices.

Xbox was one if the few brands in recent history that was actually a success. Zune failed, Surface tablets aren`t doing that great and they had to make huge price cuts after they tried to get into the market for many years and the biggest selling point of Windows Phone is the camera from the Nokia smartphones.

How they managed to get from the 360 to the Xbox One is beyond me, but on the other hand the writing was on the wall. If you watched the E3 conferences for the last 3-4 years you have seen them mainly talk about media features and Kinect.

cell9893827d ago

greed is at the core of the xbone developement. Make a machine with as little money as possible, force Kinect so compensate in ads for a mass market

MizTv3827d ago

True
2006-2007 was the best time for 360
Since 2008 not so much...

YodaCracker3827d ago

You must have missed this year's E3 where they showed nothing but games, games, games, back-to-back, one after another.

And it's pretty clear how they got from the 360 to the Xbox One. For years, they had been adding more and more media features to the 360. The first Kinect was essentially an experiment. It was all building up to the Xbox One, where all these media and Kinect features are native to the console.

And it sure has been successful for them so far, considering they tied Sony for the fastest-selling console in the first 24 hours.

Fgfttfgff3827d ago

@YodaCracker you also forgot sony only released in North America. Micro$oft released in 13 countries.

+ Show (1) more replyLast reply 3827d ago
Godmars2903827d ago

It tries to do many things with game and TV, then has forced Kinect integration hampering it besides. And then on top of that they make the mistake of underestimating what does.

Strange world.

Blachek3827d ago

I think they will do just fine with this generation. In fact, I think Sony will do better in the long run with Microsofts direction.

Microsoft can expand it's customer base without cutting into hardcore gamers who prefer Sony while increasing the exposure to video games among people who otherwise may not get an opportunity or be initially interested.

SirBradders3827d ago (Edited 3827d ago )

See for me i would much prefer 5 devices that do something flawless then 1 device that does everything mediocre. My tv does what the xbox1 is already trying to do, voice controls are really not that much of an innovation and the ps4 is already supposedly more powerful.

Ultimately people buy a gaming console for gaming and for 20-30 years its been the same. I do honestly think that aint about to change either because times are getting harder and people don't wanna fork out extra to plug there already subscription based tv into an overlay which will then put that cost up.

So in answer to your post i think they're in a worse position this gen.

Playstationologist3827d ago

Exactly right. It amazes me just how bad they screwed up on every single thing, to the point that people like me are switching from 360 to ps4.

malokevi3827d ago

Here's a silly little question:

Who cares?!

+ Show (4) more repliesLast reply 3827d ago
JessiePinkmanYo3827d ago

$28 times a million in its first day. That's not chump change.

stuna13827d ago

It is when you've spent Billions on advertising, Marketing, Researching and, Developing for that exact same product!

Rhomiel3827d ago

100 millions only on the new controller!!!

AndrewLB3827d ago

Microsoft is clearly in better financial shape.

http://finance.yahoo.com/ec...

OrangePowerz3827d ago

That doesn`t include shipping, the share retail takes and so on. So in the end they don`t make money on the console, but that`s usually the case as the real money comes from software sales and Xbox Live.

JessiePinkmanYo3827d ago

Oh I agree-the $28xa million sounds like a lot, but out of that, all the costs you guys mentioned, plus retailers take their bite as mentioned in the article.

nukeitall3827d ago

This is likely by far the least loss any console manufacturer has taken in across a generation.

Remember when the PS3 was reportedly loosing $200-300 per console sold, or that Xbox 360 was around $150-200?

Profit comes later when the platform is established. This is the same every generation.

KwietStorm_BLM3827d ago

Perspective, buddy. $28 mil is nothing.

AceBlazer133827d ago

Wonder how much those armored trucks and xbox tour took out of that 28 mil, let's not forget the 100 mil for the controller.Or xbox warehouse. That 28 mil beginning to look like chump change yet?

+ Show (1) more replyLast reply 3827d ago
Ko_Uraki3827d ago

For months I have read so called insiders talking about "imminent disaster" for Xbox One. I am seeing a successful launch of a very complex hardware. Can't understand the negativity

xHeavYx3827d ago ShowReplies(2)
OrangePowerz3827d ago

It might not be as successful as MS would have liked given you can go into a store and pick one up.

UnHoly_One3827d ago (Edited 3827d ago )

That's a crappy way to judge success.

If they had only produced 1 million consoles, and sold a million, then it would be a massively successful launch, right? Because you wouldn't be able to find one in a store??

And if the PS4 had 2 million consoles ready to go, but sold that same 1 million? Their launch would be a failure because there would consoles on shelves everywhere??

What an ignorant way to look at things.

OrangePowerz3827d ago (Edited 3827d ago )

I didn`t say it`s a failure and I didn`t say that it would be a huge success if you make 1 million consoles and sell all of them.

I simply said that MS would have liked it a bit more successful. If you launch a console you don`t want to see consoles sitting on shelves as simple as that, you want to sell all the units you shipped to retail.

If Sony would have shipped 2 million to retail and sold 1 million they would have wanted it to be more successful and sold all of them instead of having them sit on shelves.

Both companies run currently manufacturing at full capacity, so they keep making as many consoles as they possibly can right now. If your consoles stay on shelves you produce overhead that isn`t being sold. The more you make the more money you loose because at some point you will be left with the stock as retailers wouldn`t buy more if they don`t sell the stock they already have. And there is no point in producing the consoles for the next 12 months yet because in a short time they will have cheaper ways to produce new units compared to how much it will cost both now. So what you want is to sell as many as you can manufacture to have the overhead as small as possible.

Manic20143827d ago

Actually it was reported to be beyond MS expectation's, compared to Sony it may not be as good of a launch but the Launch is still a huge success selling over 1 mil in under 24hrs.

Ko_Uraki3827d ago

If you can find one, please tell me. My brother is going crazy for it. All the xbox ones are keep for Black Friday

+ Show (1) more replyLast reply 3827d ago
mrbojingles3827d ago

Everyone knows that retailers get like a 25% cut on the price of the console right? That's probably, assuming retailers took a bit less for MS, at least $50+. Not to mention Microsoft trying to make a profit on the hundreds of millions of R&D too. They likely sell it at a $50-$100 loss when all things are considered

djplonker3827d ago (Edited 3827d ago )

It isnt even close to 25% maybe 5% - 10% the place I got mine from cant even give reward points because they make so little already!

Manic20143827d ago (Edited 3827d ago )

Not even close, If you take a look at how much retailers are making a profit on the consoles for e.g. in the UK, it's close to £4 per unit. Then the retailers will claim 20% VAT. SO overall in the UK the retailers mainly make the profit by claiming back the VAT. Overall MS is Breaking even with each unit sold. Same goes with the PS4.

Edit: I know this since were i work we bought 100 units for each the PS4 and Xb1 from centersoft and Gem wholesale.

DomceM3827d ago ShowReplies(1)
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120°

Microsoft to Add Copilot AI to Video Games

Microsoft recently revealed its plans to incorporate Copilot directly into video games, with Minecraft being the first showcased example.

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xpgained.co.uk
Fishy Fingers13h ago(Edited 12h ago)

F*** AI

"Hey Copilot, what's a good meme to prove I dislike AI".... https://giphy.com/clips/sou...

Einhander197212h ago

Two trillion dollar company that just can't wait to put as many people possible out of work as fast as possible.

It feels like every single thing they do is making gaming worse and destroying the industry.

12h ago
12h ago
11h ago
CaptainFaisal2h ago

Why all the hate? Im actually excited about this! Always wanted this kind of immersion, and an AI companion with me all the time helping me out knowing the status of my skills/inventory/progress and giving me tips on the best approach or how to craft something specific is game changing for the industry.

Hate all you want about AI, but this is just the start and I can see the potential already. You wont be complaining in the next 5-10 years about this, but rather complain if a game hasn’t implemented it.

MrDead1h ago

Yes we can't wait for the work of others to be used without the need to pay them so that MS can profit even more from the people they fire.

I_am_Batman1h ago(Edited 1h ago)

There is no chance I'd ever use something like this, especially if it's not part of the core game design, but a layer on top of it. It's way too much handholding. Many games already feel like busy work, because they don't let the player figure things out on their own. Having a real-time interactive guide defeats the purpose of playing the game in the first place in my opinion.

If this were to become the standard like you predict, we'll see more and more video games get away with bad design, because people will just be used to ask for help from the AI companion anyway.

Number1TailzFan34m ago

Well Nintendo don't need this with some of their games these days, with invincible characters, items, easy bosses etc.. they do the hand holding built in

helicoptergirl59m ago

Takes "hand holding" in games to a whole new level.

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70°

Activision team is opening a new game studio in Poland 'Elsewhere Entertainment' to build new AAA IP

Microsoft's Activision subsidiary announced today that it is opening a new game development studio to take advantage of the huge talent pool growing in Poland. It'll be the second Activision studio based in the region, joining Infinity Ward Krakow, although this studio is, in fact, not working on Call of Duty.

Read Full Story >>
windowscentral.com
Psychonaut853d ago

They’re not working on Call of Duty? Give it time.

380°

Microsoft's quest for short-term $$$ is doing long-term damage to Windows, Surface, Xbox, and beyond

Microsoft is pushing for no "red line" for what games could come to PlayStation, and it all revolves around Satya Nadella and CFO Amy Hood's plans to increase every department's margins.

Read Full Story >>
windowscentral.com
Brazz5d ago

"The plan to move Xbox games to other platforms is codenamed "Latitude" internally, and I know there's debate and unease at Microsoft about whether or not this is a good idea. More upcoming Microsoft-owned games slated for PlayStation are already being developed. At least for now, they're potentially obvious games you'd most likely expect. And yes, while it's true Microsoft is a prolific publisher on PlayStation already, it has typically revolved around specific franchises like Minecraft. From what I've heard, Microsoft is pushing for no "red line" for what games could come to PlayStation, and it all revolves around Satya Nadella and CFO Amy Hood's mandate to increase every department's margins. "

Yeah, they are going to kill Xbox hardware.

Xeofate5d ago

"Yeah, they are going to kill Xbox hardware."

It's for the best.

Quit stringing along xbox fans and screwing over PlayStation owners.

crazyCoconuts5d ago

Take good care of those Xboxes if you have 'em ...

outsider16245d ago

An Xbox game on a Playstation. Never in my years of gaming did i ever thought this was gonna happen.

jznrpg5d ago

It is dying anyway so doesn’t make much of a difference

VersusDMC5d ago

No way can they get rid of the hardware as probably 90% of game pass subscribers are hardware users.

Highly doubtful those users will move to PC or Cloud to subscribe there and the competition (Sony and Nin) will never have gamepass on their system.

If they want to keep the current subscribers, they need to keep releasing new hardware.

PSPSA5d ago

I'm not convinced, why then announce that they're actually working on the next-generation Xbox with “the largest technical leap”, and also looking into handhelds now?

Rols5d ago

Not like MS don’t drop things a hot potato if it is not performing. Look at MS history to see products or platforms discontinued. Xbox is not a charity for MS, it needs to make money and the ABK was the last roll of the dice for Xbox.

purple1014d ago

Xbox hardware team members have been incorporated into surface team

This perhaps shows they are not expecting big things from Xbox as a separate entity

Abear214d ago

Seems like they are planning to win next gen. All the acquisitions were this generation and nobody except Xbox fans expect games from the acquisitions any time soon.

I’m sure Microsoft can afford to lose money on the short term, pretty sure they do risk assessment when acquiring many companies and spending billions, they’ll be fine lol.

+ Show (5) more repliesLast reply 4d ago
gold_drake5d ago

i think it will kill off the xbox brand. windows will be fine.

but there is and would be a chance that xbox might be killed off in the future. if they fail to make the money they put in. imo.

S2Killinit5d ago

They wont kill it, but they will go fully PC while keeping xbox as a brand, and go multiplatform for the most part. They will also work tirelessly to diminish console gaming’s importance.

PRIMORDUS5d ago

It would be best if Xbox goes the way of Sega, just make and publish games. I know I myself will not support them at all with buying games from them, you all can. 🙃

ChasterMies5d ago

The Xbox brand will live for the games. I don’t expect Microsoft to entirely drop out of gaming hardware. They make Surface tablets and laptops. They’ll make Xbox branded hardware for those that want it.

shadowT5d ago

"Microsoft is pushing for no "red line" for what games could come to PlayStation"

Forza and Starfield next?

Skuletor5d ago

Starfield would be no surprise and there's the rumor that it will come to Playstation after the Shattered Space DLC, Forza (along with Halo and Gears of War) I find less likely but I wouldn't be surprised if they eventually end up on PlayStation too, especially if Xbox give up on hardware and go the Sega route.

shinoff21835d ago

Not to worried about forza. I'd rather see others like what inxile and obsidian are working on. Starfield sounds like it needs more time in the oven so let it cook first imo. If starfield and it's a small if does release on ps it'll be in the fall around the time for dlc or right at the dlc and come packaged with it.

-Foxtrot5d ago

In the words of Phil Spencer when he was talking about Nintendo last year

“It's just taking a long time for Microsoft to see that their future exists off of their own hardware"

S2Killinit5d ago

Yup. MS are a cancer to console gaming.

Aloymetal5d ago

100%!!
I wonder what happened to that dude that was always here posting those court articles with cartoons about MS spending all those billions in studios. He suddenly disappeared, I guess he doesn't like bad news when the green brand is in trouble. No new articles from him as of late...

PRIMORDUS5d ago

Yup, and it's only going to keep spreading.

Outside_ofthe_Box5d ago

Phil Spencer's words always comes back to bite him lol

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