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360's financial future looking rosy

Xbox 360's latest financial numbers have been flying about for a few days now, like so many winged monkeys. As you can imagine, winged monkeys are sort of dangerous, difficult to understand. Thankfully, Robert Summa broke down the numbers (monkeys, remember) into easily understandable bits (like removing the monkey's wings). Now the numbers are safe for everyone (though somewhat disappointed, having lost the gift of flight). Things of note:
  • 1.8 million 360's were shipped in the fourth quarter
  • 5 million installed user base
  • 10 million shipped by holiday 2006
  • Over 160 High Definition games by year's end.
  • Xbox Live has 3 million members
  • 6 million Live members by this time next year
  • 360 is the shizzle fo' rizzle*
The future looks bright indeed.

[Via Joystiq]

*This is not a real statistic, but it would be awesome to hear Peter Moore say "shizzle."

Reader Comments (Page 1 of 1)

SydRocks1

7-24-2006 @ 11:05AM

SydRocks said...

Cool. But do you think the Xbox360 is going to make up for the 4billion they lost with the last one?

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Puh_Fifer2

7-24-2006 @ 11:28AM

Puh_Fifer said...

I just want to see a full financial report and know if they're even covering their costs on 360 yet. I know all of them so far were sold at like a $150 loss. Have they made that up in acc, XBL Marketplace and licensing? If it coninues to eat money like a fat kid at Coney Island, we can kiss the Xbox 720 goodbye.

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Richard Mitchell3

7-24-2006 @ 11:33AM

Richard Mitchell said...

"If it coninues to eat money like a fat kid at Coney Island..."

Fat kids eat money?

:)

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Raheem4

7-24-2006 @ 1:00PM

Raheem said...

Fat kids eat anything.

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Cage5

7-24-2006 @ 1:16PM

Cage said...

I dont think you set goals so low that if you hit them you will be losing money to the point of losing an entire division. Think...

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DeadPlasmaCell6

7-24-2006 @ 6:04PM

DeadPlasmaCell said...

I think we'll see plenty of Xbox Consoles from here on out.. the first was a success and proved to be a true contender and now the 360 is doing great as well. And MS has deep pockets.

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Xfan7

7-24-2006 @ 6:47PM

Xfan said...

Anytime Microsoft financial data is brought up, the billions spent on the hardware and marketing over the life of the console is brought up. That cost, while true, is a sunk cost. It's not like Microsoft is carrying 4 billion in debt they have to recover. It's a done deal. If you look closer, you'll notice they have 31 billion in cash alone at their disposal as of right now, which they've carried all along. In contrast, if you look at Sony with the PS3... They've spent over a billion dollars in R&D (maybe even 2), and they haven't sold a single unit, plus they just borrowed almost a billion dollars as of earlier this month.

Anytime you create a new piece of hardware, there's initial R&D, marketing, production, etc etc. For a new console the costs can easily be a billion to 2 billion. That's what happened to Microsoft. Where Microsoft made a mistake, is that they didn't own any of the property in their console, so they were unable to reduce costs over the lifetime of the console. If I'm not mistaken, Microsoft still loses money over every Xbox (1st generation) sold.

Where they recoup costs is in sales of software, licensing, subscriptions, or additional hardware. The console hardware is being subsidized at a loss to support those other areas and third parties.

To look at if the Xbox or Xbox 360 is successful you need to at least consider all areas, and not necessarily focus on hardware or past debt incurred by hardware.

The one manufacturer best poised to recover costs quicky is most likely Nintendo. They've done this for a long time, and they don't necessarily sink a lot of expensive technolgy into their products.

But anyway, in the end, I think Microsoft, Sony, and Nintendo are all in this for the long term, and will be around for a while.

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darksyde788

7-24-2006 @ 10:57PM

darksyde78 said...

And to think, these numbers are being done without bringing out "you know who" before its ready. I have many friends that are just waiting for H3 to come out before thier purchase. I bet all of you have friends who will do the same. Once that Game hits, it will do for the 360 like H1 did for xbox.

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Puh_Fifer9

7-25-2006 @ 12:45AM

Puh_Fifer said...

I meant one of those hot dog eating contests that's usually won by an 85 pound Asian kid. And I understand Microsoft has deep pockets to keep spending, but if they keep hemorraging money eventually they'll leave the project. It's kinda like my '93 Honda, I keep putting money in because I love it, but eventually I just have to let it go.

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SmartriX10

7-25-2006 @ 10:31AM

SmartriX said...

I don't know about that 10 million mark by the holidays, theres roughly 5 million now and that took around 8 months, I don't forsee another 5 million in half as much time.

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xbox36011

7-25-2006 @ 4:45PM

xbox360 said...

At least we know that MS buisness plan works, especially that now LIVE is coming out of the pipline.

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