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Joshua

Xbox 360 Crash Caught On Video

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Microsoft loses 167 dollars for evety 360 sold, so would expect them to use the cheapest materials.

 

Almost all consoles are sold at a loss. The way they make up for it is through game sales. I guess they're betting on users buying a lot of games. The average console game (new) costs like what, $60? Lets say they get an incredible 75% of that money (highly unlikely) - that means each xbox 360 owner would have to buy roughly 4 games for MS to make any money. Since I doubt they'd be making 75% of those game sales, that means every more games (4+) would have to be bought for each xbox sold.

 

What does anyone else think about that? I'm not very well educated in console economics!

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Microsoft loses 167 dollars for evety 360 sold, so would expect them to use the cheapest materials.

 

Almost all consoles are sold at a loss. The way they make up for it is through game sales. I guess they're betting on users buying a lot of games. The average console game (new) costs like what, $60? Lets say they get an incredible 75% of that money (highly unlikely) - that means each xbox 360 owner would have to buy roughly 4 games for MS to make any money. Since I doubt they'd be making 75% of those game sales, that means every more games (4+) would have to be bought for each xbox sold.

 

What does anyone else think about that? I'm not very well educated in console economics!

 

Its true although I am not sure about the 75% as it would be less. But the hardcore gamers buy everygame available at laucnh time. Too bad, Microsoft should've saved some and sell it on eBay, there selling near 6000 to 8000. what idiot would do that?

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I am not educated in the economics of the Xbox at all, but I wouldn't be suprised about a 75% markup. Digg had a report a few months ago that it only costs Intel $40 to make each chip (plus development etc.; please don't say advertising, they don't spend on that and don't need to) and they go for up to, what, $850?

 

I have worked in enough places to have seen some reasonable markups, but some are astonishing. The worst I ever saw was for a PC laptop sold as a gaming machine (not true) at £5000 when it cost, wait for it £400+£100 (if that) in "upgrades". That's a thousand per cent markup!

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Well, its true that they are losing $167 dollars on each xbox. The theory about making money isnt just in the games, but in the accessories, and now the limitless content that will begin to be offered on the xbox live marketplace. They have made it just as simple as iTunes. Its very easy to just one click over and over and not realize how much you are spending.

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the profit can't be judged solely on the console sale. Being first on the market will drive their stocks up, and that is when they will realize the true profit. Their stocks have already gone up from 24 to 28 dollars per share, with an AVERAGE daily trading volume of 70 million shares, you can now see that 167 dollars is nothing.

Starting on November 11,2005, Bill Gates began dumping shares and has made a profit of 516 million dollars. His CEO's and VP's are all doing the same thing, and I'll guranatee you that employees are exercsing stock options right now.

 

info comes from insider transactions at http://finance.yahoo.com/q/it?s=MSFT

 

they could release windows hockey puck and still make billions.

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Most computer components are not expensive to produce, you're paying mostly for R&D, as is Microsoft, those powerpc and ati chips will cost quite a bit in R&D.

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Apple already made a game machine, came with internet ability too..... It was a huge failure :(

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If you mean the Cube... that wasn't a gaming machine. :D

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Apple already made a game machine, came with internet ability too..... It was a huge failure :(

 

Would you care to clarify as every Mac has "internet capabilites."

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i am sure that apple will eventually join the video game industry.

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With the way Sony and Microsoft are turning their game consoles into machines more like the Mac Mini and running photo and video software on them...

I think Apple is way ahead of the "game" (no pun intended) They're trying to copy the Mac Mini with the game consoles.

 

I think instead of Apple "getting into the game industry" we're going to see Sony and Microsoft and whowever else has a game console get more into the "iLife" industry that Apple has started.

 

Macs can already play games... who needs a separate console... especially the way Apple is ramping up the Mini to go into the living room etc with Front Row.

 

I expect one of the new features on Front Row to play games or access your directory of games.

 

Who knows... but I think Apple is leading the pack, not trying to catch up.

(just my thoughts)

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Apple already made a game machine, came with internet ability too..... It was a huge failure :(

 

Would you care to clarify as every Mac has "internet capabilites."

The Pipin.

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You are comparing Apples to Oranges... the Mac Mini is nothing like a Xbox 360, not even aiming for the same people. the Xbox is a console, with a few multimedia things tacked on. The Mac Mini is a full fledged personal computer.

 

You do sound very fanboy like when u say they're copying Apple's "iLife" philosophy... they aren't. Microsoft's goal is to be your media hub in your livingroom.

 

They want you to buy a Media Centre PC because it already works with your xbox. When it comes to consoles Apple would be catching up. They're great computers... and should stay in the computer market.

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Actually Goatman, the mac mini is rumored to be the basis of a DVR/itunes video playing box for the living room. Look at frontrow, apple is already trying to move macs towards a home media device.

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Front Row is a complete rip off of a Microsoft product... wether it's better or not doesn't matter.... it's a MS idea that Apple liked. You need a new mac for it, and a Mac Mini doeswn't really have the horse power for it.

 

Anyway, the Mac Mini thing is just a rumour, and the xbox would still be the better choice simply because it does more, and play games alot better than a Mini ever could. What MS is doing with the 360 it has been planned ever since they began development on the first xbox.

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I looked at the 360 specs and they use 3 yes 3 Power PC chips running at 3 GHZ each! Now what does that tell you?

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That IBM offered MS 3-core PPC chips for a good price...

 

It doesn't use 3 PPC chips, it's a 3 core chip.

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You are comparing Apples to Oranges... the Mac Mini is nothing like a Xbox 360, not even aiming for the same people. the Xbox is a console, with a few multimedia things tacked on. The Mac Mini is a full fledged personal computer.

 

You do sound very fanboy like when u say they're copying Apple's "iLife" philosophy... they aren't. Microsoft's goal is to be your media hub in your livingroom.

 

They want you to buy a Media Centre PC because it already works with your xbox. When it comes to consoles Apple would be catching up. They're great computers... and should stay in the computer market.

 

Goatman.

What Apple is doing with their "computers" is about 10 years ahead of Microsoft and Dell and all the rest. You really think that the gaming and video industry is headed towards something based around a TV or something that only exists in a "living room"? Everything will eventually be on a computer - like it or not... games, videos, photos, music.. the computer will be the hub - no matter what room it's in. Call it a console or a media center or whatever you want... but it's a computer isn't it?

 

So my point is that Apple is leading the way by realizing that they don't need to put out another product just to "keep up with the Joneses"... they've already got a great product that can do everything that the consoles can - and whatdoyouknow? It's *also* a "computer".

 

"fanboy" haha - was that supposed to be funny?

I think Microsoft makes good software and a good game console... And I also still believe that they're trying to catch up with "Apple's iLife philosophy" (as you put it) in their new game console... it took them how many years to realize this was important to people. :) Looks like catch up to me - but i'm no expert on Microsoft.

 

And I *am* a fan of Apple and I'm proud of it! 8)

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My point is that the Mac Mini cannot do everything the Xbox can, and that Apple is behind MS, not ten years ahead. Media Center Edition has been out a long time.

 

I'm a mac user, and I love all my Apple products, but I don't think they're ahead of anyone. They haven't been in a long long time, they just make the correct decisions, and actually know how to market.

 

The iPod was not a new idea, 64 bit CPUs weren't new, Mac Mini was not a new idea, and Front Row certainly is not.

 

Sure Apple makes the best PCs you can buy, and I agree with that, but I disagree with all the Apple is ahead of it's time junk, it makes apple fans sound rediculous, and that's why Apple gets no respect amongst Intel users.

 

Why does Steve Jobs dislike the price hike that the RIAA wants? because he worried that he won't sell as many iPods. He's not some mythical God, he's a man that wishes he had half the money his once competitor had... He spins everything to make a buck, and everyone eats everything he says up.

 

I end by saying my next computer will be a Apple, I like them, I like OSX, and I just dislike the hype everything spouts off about them.

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Apple's biggest successes have never been from new ideas. What they have excelled at is taking a new and great idea, and making it work better than anyone else has, which is a very impressive skill none the less.

The mac mini however, actually even now has a fast enough CPU to be a DVR device. A G4 1.5ghz has the processing power necessary to decode 1920x1080 mpeg 2 without GPU acceleration.

It'll stumble more on mpeg 4 and h264, but it has the power to do everything a TIVO can. It may take the intel switch to give it the power to play decent resolution h264 TV downloads.

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I think the word you are all looking for is "innovation" LOL but you can use a Mini as a Tivo? how can you do that?

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