Microsoft beating Sony...in the race to lose more money

In a recently written article by GamePro, it was detailed how Microsoft lost more money than Sony did with its next-generation console venture. While this may be obvious to all with the recent warranty extension money being set aside, one has to wonder how this is doing any good for either company. How can millions, even billions of dollars in losses seem positive for a business? How will Microsoft or Sony respond?

[Odion]

very true, but if they didn't put the 1.1 billion in they would have broken even or made a small profit.

[kingjkv]

The title is freakin hilarious LOLOLO

[MaximusPrime]

agreed.

When i read the first 3 words, i thought "oh joy..." but the ending, "phew a relief"

[VendettaWFT]

The kid who responded (lesbiangamer whatever) first got so many people pissed off and he probably wanted it that way. Mission accoplished for that guy.

[Combat Survivor]

@ Odion
If you analyze this, you will see that Microsoft still loses money in the hundreds of millions of dollars!

[360Crusader]

That warranty really set Microsoft back a nickel or two. lol Oh well what can you do. I just hope the new hardware will solve the problem then the sony fan boys wont have anything else left to say. Jeez they better start searching for a new come back.

Edit: But I'm not a fan boy. I do admit that this 3 red light is a problem that must be addressed. But its far from the junk some of you make it at to be.

[drtysouf21]

Look in the report section of this story click on info above for those that didn't know and look what was said. Boy i wish you would say that to my face in person and i ain't gonna even type what would happen to you. But you can bet your being reported to admin. And look at the first comment.

[VendettaWFT]

I would love to know what this kid said that got a huge reaction outta people. I gotta think it was along the lines of racism

[Maddens Raiders]

get a rope.....

of course an electric chair works well here too. Ride the Lightning Baby!

Seriously, Lesbian-D*ldo Smoker - you're the weakest link - Goodbye!

Goodbye! =]

[marionz]

MR i dont mean to sound rude but you also are a diehard fanboy and some of your comments reach gutter level, in the past i thought your comments were pretty reasonable but now days its only retarded fanboy comments from you also
the fanboys all need to keep to the rules and only post sensible comments

[The Real Joker]

I completely agree. Maddens Raiders is another prime example of someone that should be banned. He has no room to talk. For anyone that disagrees with me, just check his past posts. Lesbiansonygamer is definately a racist and should be banned but Maddens Raiders's propaganda isn't much better.

[StateofMind]

I know the PS3 will be profitable in the long term. It's just a matter of getting costs down and software on the shelves. I also think the 360 will find its way into profits. They're expensive machines that need to get into homes so software can bring in the money. That's how losses happen, because to get them into homes the companies usually need to take a hit.

I don't understand why this is a bad thing to any of their readers. I mean, maybe Sony isn't happy with their PS3 sales or Microsoft is fed up with their gaming division...but we're all just playing games. Would you rather them overprice a cheap machine (Wii, cough) and make huge profits while screwing over the consumers (us)?

[heavymetal3k]

Actually MS has yet to gain any money from an xbox system, I read somewhere they have lost over $5 billion between the two systems. So dont know if the 360 will make up that much ground

[Robotz Rule]

I'll go with you :)

[Robotz Rule]

:(

[Shaka2K6]

They charge $80/year to play online games ahh that must be bad then.

@people on lesbiansonyfan-girl.

He is obviously just a xbox fan pretending to be a girl here if you didnt see that then you need to get out more hehe.

[ViciousIX]

That's all they do for gods sake!

[gogators]

b!tch, but most of them are gamers too.

[Lifendz]

the way some Lems behave I hope they never buy a pS3. I've been playing online with PS3 quite a bit and have yet to hear one racist comment from someone. On XBL it seems like a Klan rally.

[D_U_I]

The racism was shocking, its was very bad and its getting worse i hear.
Mostly on bigger games like TDU and Gears. Words like nigger, rag head, black bastard, french cunt and sand nigger would always come out of some crude little bastards mouth.

[Maddens Raiders]

on XBL is Legendary.

Hold on to your butts......

Answer: Before you blame the child, you must first blame the Master. Racism is a combination of ignorance, fear, and selfishness. This same condition has initiated wars and mass genocide for centuries. Those who relish in it perpetuate misery on this earth like a pestilence, just as bad as any real terrorist.

*And I have heard racist comments on Motorstorm too. I thought the PS3 was out of the reach of most racists too, but it's not, which is disheartening. Well, ya know because racists are generally _________ _________. =[

[gogators]

are generally good gamers. Yes, there are some bad apples out there and I assume with such an emphasis toward online play this generation that there will be more bad apples showing up over time. Thats why there is a block function and to say that XBL racism is legendary, is ignorant in it's own right. When ever you go online, you will all ways run the risk of running into some dumb @ss, but again most gamers are not like that.

[razer]

The racism on Live is Legendary?

What a load of crap man.. You just never stop bad mouthing the 360. I look at your post history and just about every comment made in a 360 article is negative. I've been called many names on PSN in Resistance so there are bad apples in every service.

Fanboys suck! And this article as brought them all out.

To this article: Everyone seems to miss the fact that MS has planned and will be in the black in the entertainment division in 08. All these negative stories are such drama, yes the 1bil warranty thing was bad but with their diverse revenue streams they are going to make money.

[Daewoodrow]

Wherever you find large numbers of people congregating in one area, you'll find racism. As the online population of the Playstation network increases and encounters a wider market audience, you'll see it there too.

I find it sickening that anybody would suggest one particular console network attracts racists more than others. It's that kind of talk that spawns racism in the first place, believing it to be some distant evil that your social class is somehow immune to. Racism flourishes most when people believe it doesn't exist, and the sooner you realise the problem of racism is everywhere, the sooner it can be faced and destroyed.

[i Shank u]

MaddensRaiders Is a racist against xbox360 booooo!

[ASSASSYN 36o]

Oh Boy! Another I hate Microsoft gamepro article. Gamepro has been typing alot about microsoft and none of it is ever good news.

[Armyless]

I rarely post on this pap.

[djt23]

dude that was Racist
why the hell people saying these hateful word.

[Lex Luthor]

I think every single one of us can all collectively agree whether you're a ms or sony fanboy that lesbiansonyfan-girl is a DOUCHE.

[mikeslemonade]

Techinically Sony is beating 360 in the console war. I always felt that whichever company makes the most money is the winner of console war.

[Funky Town_TX]

nintendo is winning.

[Nervsys]

does that mean that the winner is whoever sells the least?

[FeralPhoenix]

Racism is everywhere but you can't live your life worried about what every idiot in the world thinks about you, 99% of the time they are all talk, and its better to just move on before you end up doing something you will regret (its not worth going to jail).

Also I think its pretty lame to act as if this is only a problem associated with XBL, this isn't a gaming preference issue this is a social issue within society, mostly 'caused by people being brainwashed into believe a certain race is inferior to their own and its usually passed down from one generation to the next until, someone in the gene pool is smart enough to know you can't judge people by the color of their skin or stereotypes associated with their culture. Of course their will always be some people of a particular race who do fit the usual negative stereotypes but only an idiot would assume everyone does.

Gamepro seems to knock the 360 on a regular basis, but hey the media scrutiny is different these days than what you saw yrs ago.

[mikeslemonade]

I said Sony is beating 360 in the console war. Nintendo is winning right now. So really the gamecube was probably the #1 console early on last gen until the PS2 came back. PS2 lost money for 2 years before Sony made money from it.

[MannyHarlem141]

BOOOOYAh! for all you suckers player hating on the pimpstation triples.. sorry for the overindulgent utile of ebonics for the purpose of gloating..

anyhoo.. microsoft has more to lose, its a 300 billion dollar corp. (i think).. don't feel bad xbox fan boys if you really wanna hurt sony go buy 10 ps3s each, since sony sells them at a loss it'll really hurt their worth! lol

[sadiq]

lol for a second ithought u were going to get neg famed like and idiot but wat u said at the end is true, +bubblzze fo sho fo u sir

[The Karate Kid]

That comment from lesbian broke my heart. Please not here.

As for the Xbox losses all i can say is this.

You rushed to the market on some sneaky crap, to steal away the fanbase, and the end result was an unfinished product that overheated and fried. When you buy a 360 you have a 66% chance of it lasting one year. (THAT SUCKS)

You deserted the Original XBox by 1st only having 5% of the games backwards compatible and secondly canceling all game releases only to have them ported to the 360 which made Next gen have a bad rep that it has today. End result is only 11 original xboxs sold last week, compared to the 40,000+ PS2 sold

Sony still making millions off the PS2 and MICROSOFT still losing the couple hundred dollars on the orginal xbox lol.

So you came out and sold millions in America, trashed talked the PS3 got alot of hype and with the blink of an eye, the inevitable happened.

PS3 price drop, Firmware 1.9, an awesome E3 press conference, Killzone 2 and Metal Gear Solid 4, Heavenly Sword Demo and Hot Shots Golf releasing in Japan (150,000) sold 1st day.

And now as the chinese violin plays, 360 is being outsold by PS3 in North America.......outsold in Japan and outsold in Europe on a weekly basis.

Then its gonna run into a heap of Exclusive Games in Q4. Adding in Home and a New Sku of $399.99 with a rumble controller. 4-6 new exclusives announced at TGS and things will only get worst for 360........................... ......

Hey Microsft, Peter Moore Jumped Shipped because he smelled the mist of the seas like a thing from the past..........

All of sudden 360 is turning into Segas Dreamcast!!!!!!!!

[Daewoodrow]

1. The original xbox has been discontinued. Of course it's being outsold.

2. The Backwards compatability is currently around 60%

3. The 360 isn't being outsold by the PS3 in Europe.

Your fanatical rhetoric might gain the approval of the other fanboys, but it doesn't affect the opinions of the intelligent gamers.

[Mu5afir]

@ Daewoodrow

The Ps3 has been outselling the 360 in Europe for a while now.

[felidae]

you actually made some very good points.

[power of Green]

PS3 won't do sh*t its aready doing all it can to compete and its already offered all its counter measures. Whats the Sony going to do? offer another price drop to counter MS's first?; shortly. It doesn't even have enough games coming out at any given time, Never mind the loyal Japanese to all Japanese consoles and Europe and its traditional habbits or anger towards the USA.

[cartman313]

Japanese are anal when it comes to quality. X360 sales over there has nothing to do with them being angry at the US.

[jax07]

You can tolerate people trash talking about PS3's, Wii's, and 360's, but for someone to post some crap like that because the system that you like gets bad mouthed is stupid. Why the hell would she post that. It went way too far when she made that threat. This is why I highly doubt that it was Lesbiansony-fangirl that posted that. Making death threats like that is against the law!!! She could get arrested for that or harassment at the very least. I guarantee that the owner of that name will be contacted and promptly.

[FirstknighT]

I know alot of people consider me a fanboy and I guess I am since I prefer the 360 but getting racist or threatening somebody is crossing the line. I also took a bubble away from lesbiansonyfangirl but unfortunately their is racism everywhere....xbox live, psn, the real world. Impossible to stop it...just have to live with it.

[Da Ghostdog]

Just like one poster said, those type of comment you will run into online. Bottom line, both lost money. MS investors told them to do the 3-year warranty. For example, Hyundai. Hyundai introduced their cars in the US in 1986. They were the most sh***est cars on God's green planet in that time. Breaking down left and right. Now today, they are a threat to Toyota, Honda, and everyone else in the automotive market (even with their warranty). So on that note, this lesson cost them 1 billion in their pockets. But their investors told them to do the 3-year deal because they can afford to. Problem here, solution here, it's done!!! Move on.

Now for Sony. We all know Sony ruled the Last-Gen console. Now we have the PS3. Problem is, alot of people cannnot afford that li'l MSRP. That's where the problem lies. Cool, you have a PS3. But what about the other people out there who cannot afford one?! You can cry, b1tch and moan about the 360 all you want. But the fact is Sony's gaming libary has just begun moving the wheel at the end of this year. Not only the 360 libary has a 1-year headstart, but they have a stronger line-up for "THIS" ending season. Not only that, Sony had to borrow money from banks to keep it's production moving.

We're not going into the HD-DVD -vs- Blu-Ray -vs- DLC thing. That format war me or none of you can judge at this point of time now. True that Blu-Ray has more studios and players out there (because of the PS3). The strength of Blu-Ray is backed by the gamers (PS3 owners). My question on that is , where is the info on "stand alone" Blu-Ray & HD-DVD players at?! Are we just looking at this "WAR" because of PS3 & 360 add-on HD-DVD players, or did we forget the casual "Non-Gaming" consumer who intrest are in movies?!!!

So, both consoles have it strengths and weaknesses. In closing of what I spoke about. If you need to give your opinion about your favorite console. Say it with intelligence and not with ignorance. Both systems have good games. Fangirls are taking this site down everyday.

[JasonPC360PS3Wii]

Software

[Ares84]

..by Metallica, "Sad but true". :D :D

[neil1988]

nintendo wii has won the war it as betain playstation 3 & xbox360

now the war is betwen xbox360 and playstation 3 to see ho is going to be secound place .right now no how i see on how things are going xbox360 will be secound place .if playstation 3 doues not do somthing dromatic fast then its doomed to therd place they may have more games now but xbox360 has much much more games .ps3 did not rily do a price drop 500$ for the one that was 600$ is no reale differint were xbox360 is still 300$ and 400$ . and now ps3 has a new 600$ just with more memory stuuf and a game with .it still does not help he plystation 3
and the nintendo DS has also won agenst the psp so sony is not doing well at all the way i see for this console

NINTENDO WII 1ST XBOX360 2ND PLAYSTATION 3 3RD
thats how i see it

[snoop_dizzle]

since it was erased, but man from the sounds of what people said he said it was pretty bad.

BTW who were the 4 people the agreed with lesbiansonyfan-girl?

That aside, Msoft might be loosing more money than sony, but doesn't Msoft make so much money in their os division that it really doesn't matter? Wasn't there a recent report regarding msoft stock and it did really well and they made alot of money?

I mean as some say they haven't really been profitable in their gaming division(i can't really confirm this but it makes some sense), but everywhere else they are swimming in money.

Then again i could be wrong.

But remember, Msoft is a very huge company.

[crippler666]

For people viewing this generation as a forgone conclusion, that is dumb. No console has won outright in 1-2 years. The real test is in 2 years time, then we will know who has won.

Judging by sales alone in the same amount of time (from console release), the Wii has done phenomenal, whilst the PS3 and 360 are about the same. Some figures I would like to know is how many Wii owners own another console?

All companies lose money when releasing a new console and the more advanced they get the more they will lose. Microsoft and Sony have both made mistakes, they both are still working to rectify them. I own a PS3 and am very happy with my purchase, but respect what Microsoft have done for their customers and the steps they are taking to put things right.

With all the problems they have had and trying to gain exclusives I do expect them to have lost money this year, but with Halo 3 on the way they might start too get the money back.

[Ru]

Years and YEARS AHEAD of them.

[Groo]

Yeah PS3 is so awesome...just waiting to see it do something good... All the best hardware...but maybe one decent game to show what it can do so far...I'll believe it when I see it on my console.

[atomdooze]

M.S. loses money on every unit sold, the 360 is just a nessasary evil to sell its software via games ,it takes 5 game sales for MS to make its money back on every unit sold. Is there 5 games worth buying on the ps3? Hell no.blue ray and HD player lol maybe if they didnt have it on the ps3 u could afford it anyway

im not watching movies on my 360 anyway im playin killer games live.
and as far as graffics look at the 2 systems side by side I own both
and th 360 looks better not alot but still.

[Groo]

I agree with you bro, have you ever heard of sarcasm? cause I was being sarcastic

[sumfood4u]

His/Her comments is doing nothing but wasting our precious ear wax an His/Her Breath!

[XxZxX]

emmmmm.... Lesbian is very happy now, because most of the comments is about her not the thread. he totally hijack this place and you guys totally buy it. He doesn't care if he get banned, cause he won after seeing all reaction focus on her

[Unknown]

everyone doesn't get the RROD then how can having a billion dollar reserve set aside for warranty hurt MS. I mean its a reserve, meaning "just in case"...right? Can someone with knowledge in business or the video game industry give me some insight into this matter. I also belief that MS is recouping loses via DLC. I mean if you look at the structure of the Microsoft points then, by most accounts, its rip-off. Personally I call it expensive. SONY can't or isn't recouping their loses this way(yet anyway) as the don't have such a large installed base for their on-line service. Plus all the accessory attach rate and crap like that plays alot into them balancing out I think. ARPU is something that is very important in the wireless section(which I'm apart of) and I think the videogame industry is starting to look at ARPU as well to determine profitablity and such. This is just my reasoning. Please feel free to offer opposing views(supported by rational fact please) as I like to hear different perspectives, hence it could help further my knowledge of the videogame industry. Thanks.

[Bebedora]

is everywhere. Democratic or not