Spencer: It Doesn’t Matter How Many Consoles Sony Sells Versus How Many We’ve Sold

“I put the customer at the center of our strategy.”

Posted By | On 16th, Jun. 2016 Under News | Follow This Author @Pramath1605


15 Ways to Enhance Your Experience on PS4 and Xbox One

The Xbox One is, in spite of so many course corrections made by Phil Spencer, still trailing behind the PlayStation 4- and it is likely that it will continue to. This is in spite of an unusually strong showing at E3 by Microsoft earlier this week- a showing that, while great, also gave people less of a reason to buy an Xbox, as Microsoft announced that they would be putting all their games on PCs running Windows 10 as well.

One of the reasons for this ties right into what Phil Spencer has been claiming for a while now, every time he is asked the question about why Microsoft won’t share Xbox sales numbers anymore- Spencer insists that he really does not care about how much hardware he sells, as much as he cares about how many engaged players he has. He reiterated this point in a recent interview with Metro UK.

“I put the customer at the centre of our strategy,” he said. “I don’t build a strategy to sell more Xbox Ones than [Sony] sell PS4s. If we were doing that we wouldn’t bring our games to Windows. Putting our games on Windows also gives someone a reason to say, ‘Hey, I don’t really need to go buy an Xbox One’. For us it’s about the number of engaged players we have on our network and trying to get as many people playing… even our Xbox 360 customers, I love those people and want to keep them playing.”

He further added the following: “So putting the customer at the centre of what we’re doing is really the core to the strategy, and this is the reason I stay out of the dialogue about how many consoles did Sony sell last week versus how many we’ve sold.”

I don’t know if I buy what he is saying still- although just a bit later in the interview, he emphasizes that even if Microsoft were leading the console war, he wouldn’t change his stance on this, saying that he hopes he can test that hypothesis soon. But hey- it doesn’t matter if I believe him What matters is that he is making all the right moves, and if that is happening because he truly believes engaged users are a better metric to aim for than install base, then by golly, I’ll go with it.


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  • Alistein

    He’s spot on. Console Hardwares are hardly profitable for long periods unless you’re Nintendo. Nintendo’s strategy of releasing older tech when it’s cheap is the only reason their consoles have been profitable. Simply selling more consoles does not guarantee success or profits but engaging players that does ; considering software is the bread and butter. Look at the ps4 for example over 40 million consoles and yet uncharted 4 sells around 2.7 million probably close to 3 million now, less than 10 percent of the user base. Halo 5 on the other hand over 5 million around 25 percent of the user base. Why the discrepancy Uncharted 4 in my opinion certainly had a better story than Halo 5 but the constant online multiplayer support 343 gives Halo 5 makes it more relevant and you can be certain it will sell boatloads more when it arrives on Pcs. I think Quantum break would have feared better if it had a multiplayer base that could have been supported like all the big multiplatform titles.

    • Hvd

      yep out of 40m ps4’s only 2.7m uncharted 4’s sold.number of consoles doesnt mean anything if your games dont sell on it.

      the same goes for AAA titles xbox one can sell jsut as much as ps4 does with AAA like fallout 4 could have sold 2m on the ps4 and 2m on the console with 20m sold.

    • preciousdeath

      FYI, UC4 sold 2.7 million in the first week alone. But I don’t disagree that selling more consoles is all that matters. Look at the Wii, it sold like hotcakes, but most of those buyers weren’t gamers and bought hardly any games.

      Phil’s a smart guy. And I think this is a good business decision for Microsoft. But this does help Sony sell PS4’s as a lot of gamers will just stick to PC and PS4 and not bother with XBO.

    • Alistein

      My point exactly the Wii sold more than the 360 and ps3 combined but software was a miss except for Nintendo. Many third party publishers like Ubisoft attempted to score big but were disappointed, Nintendo on the other hand made a fortune on their games and accessories for the Wii because they engaged the audience by catering to them with things like Wii fit and Wii balance board and not just releasing any game and expecting it to sell simply due to large instsll base, the whole thing is similar to cable TV .

    • Edonus

      But this is the trick (you just don’t see it yet)….. every PC gamer owns an Xbox One. PCs running windows 10 and Xbox are now the same thing. MS officially has the largest installed base for their games. The last thing to do is get the message across of the value that represents.
      I’m about to go on a trip, I wish these things were in place right now because I am not packing up my X1 to travel with me and I would love to be getting some Halo 5 in while i’m away. And I am not even a PC gamer but I do have a Surface that I travel with.

    • preciousdeath

      Since you put it that way, Steam is Microsoft’s main competitor now.

    • KashIsKlay

      Okay if that’s the case they should generate enough money to finance more games. I know they are doing so, but there is no reason why we shouldn’t have a Fable 4, New Perfect Dark, Conker, Project Gotham etc… It would be cool to play something like Limbo on my tablet on the go but everything else is too much. I didn’t care that some games were going to PC but when it’s all of them it’s basically false advertising as they had millions buy the xbox because we were told this is the only platform to play those “exclusives” on.

      Back on the og xbox one of the best games KOTOR was on PC and it still seemed like an exclusive and I didn’t mind it at all. But to say this new initiative is for gamers when it’s really about getting users to their bread and butter which is windows.

  • Hvd

    he is right sony sold 40m ps4 and look at how may uncharted 4sales there were 2.7m.it doesnt really mater its about the software .putting xbox one games on win 10 will double or triple their game sales.

    the number of consoles doesnt matter sony could sell 100m ps4’s and only 2,m would buy god of war 4 out of 100m.

    sony cant touch what xbox is doing with windows 10.

    • TristanPR77

      Nothing matters when Microsoft is loosing at it. It only matters if MS is winning at it.

      Very, very pathetic.

    • Hvd

      only an idiot thinks more console means more game sales.enjoy waiting for your games till 2017.

    • andrew159159

      You say that but Xbox and windows are independent if each other. I don’t know about you but the specs don’t like UWP and I can’t see it taking any real market share away from steam, it’ll just be another GOG

  • miyamoto

    M$ is the most expensive “Mixed Bag of Nuts” today.
    They might as well change their name to “Mixrosoft”.
    LOL!

  • TristanPR77

    I don’t believe even Phil Spencer believes that garbage he said.

    “he wouldn’t change his stance on this”

    Who on planet earth can believes this when last gen, when the xbox 360 was selling more than the PS3 in the US, MS was all about sales and bragging and giving punches to Sony?

    The only reason Phil says this garbage is because they are loosing and they are bad losers. Be a man Phil, stop making pathetic excuses.

    • Alistein

      Dude last gen he wasn’t in charge and MS was under Steve Ballmer. There is a new CEO and he has restructured the company differently it’s not just the Xbox team that talks like Phil it’s the whole MS corporation so it’s not just like Phil is spewing this it’s the new path under thenew CEO.

    • ShowanW

      ^^^ #FACTS

    • Pramath

      Phil wasn’t in charge last gen, so…

  • Bigbad Bahamut

    Go NX!!!!!

  • LordCancer Kain

    i am not engaged because they won’t make the games i like kameo 2, fable 4, perfect dark, jetforce gemini. i am however glad they are bringing there games to pc from now on. re-core looks amazing.

  • Edonus

    MS was forced to change the gaming landscape. You can blame the bias media for this. They knee capped and hindered the growth and progress of the X1 and pushed the Ps4 in to the stratosphere with a contrived and foolish narrative. MS saw that they cant get a fair shake in the media so they pretty much used their dominating presence in one area to become extremely large in another. Look at this article as an example….. Phil is saying and conceding Ps4 is selling more than X1 so his strategy whether its because they have no other avenues or he’s just a nice guy (doesn’t matter) They are focusing on the customer engaging with their network.
    There is nothing to “buy”… it is what it is. Windows 10 PCs are now part of the Xbox One consumer base. Well at least when this strategy is done.

  • KashIsKlay

    Bullshit PR talk. What they are doing now is Plan B. If they had 50 million xbox one consumers they could reach I doubt they would be putting every single game on PC. They would still let indie games go to PC, but never something as big as Forza. Halo and Gears. I like the platform but he’s outright lying. Just two years ago he said he was in it to win it. Now that changes since you’re losing? Honestly I would take Seamus and J.Allard over the current team.

  • PachterStation

    Before the Xbox One was released, Microsoft messed up big time at E3, then when the Xbox One was released, the launch price was far from ideal. Still, most bought a PS4, and the Xbox One was left behind. Also, Kinect has been a disaster, and it looks like Microsoft has secretly pulled the plug. Master plan needed with Xbox One, so out pops Xbox One S and Xbox One Scorpio. Why anyone would buy an Xbox One S is beyond me, as the current Xbox One is sufficient. But it’ll be interesting to see what the price gap will be between the Xbox One S and Xbox One Scorpio. For Microsoft, Xbox and Windows (for games) have been knocking against each other for years. Microsoft has the Scorpio, and Sony has the Neo, which means the Scorpio is cancelled out. Sony way ahead with consoles sales, Spencer throws out this kind of talk because the Xbox brand and Windows (for games) has ran out of gas, so it’s a case of slogging it out until the next console war starts. VR wise, Sony’s VR gimmick will bag more sales. All credit to Microsoft giving it one last go with the Xbox One though.

  • Jason Mounce

    Says the guy who represents the company that is too afraid to show their sales numbers for the Xbox Division…..

    It mattered last generation because you were selling more and proudly flaunted the sales, but now you’re hiding the numbers, like a sore loser. Cognitive dissonance much?

    • ShowanW

      who was in charge last gen?… wasnt phil spencer…

      why isnt the new boss allowed to be different?

    • Jason Mounce

      Ooooh, Phil Spencer was the GTA4-tattoo douche. My bad.

      But yeah, Spencer is a douche. Confused him with the current guy who, so far ISN’T a douche but the point still remains that the sales are no longer shown.

    • ShowanW

      Phil Spencer didnt do the gta tat…

      Do you own Microsoft stocks???

      Investors get numbers ya know…

      I dont care as long as the support what they produce…

    • Jason Mounce

      And now I’m confusing Peter Moore with Phil Spencer, woosh.

      And majority of Microsoft investors are always complaining at Microsoft and telling them to get rid of the Xbox brand, this isn’t news, you know?

    • Alistein

      Where did you hear that? As far as I know Xbox live is profitable which is part of Xbox and in 2012 Xbox generated 56 billion dollars. Investors are in full support of Xbox and it’s the board that mskes decisions not investors in general so those that mstter are backing the division they even moved them up in MS division. You can check MS financial statements online on their website to know the true state of Xbox instead of following untrue rumors.

    • Jason Mounce

      From a Washington Post article in 2014: “Two influential Microsoft shareholders have been pushing the Redmond software giant to abandon what they view as non-essential product lines so that Microsoft can focus on its core strength: selling enterprise software to businesses. Nadella has spent the last seven months running Microsoft’s $20 billion server and tools division, so he could be ideally suited to manage that transition.”

      “Microsoft’s Windows division has been facing shrinking profits; last year, the unit pulled in a net $9.5 billion, down from $11.6 billion in 2012 and $12.3 billion in 2011. Company filings suggest that the drop is largely attributable to declining demand for Windows among consumers, even as sales of Windows to businesses remain strong. The same division also reported a $900 million loss on unsold Surface tablets. The online services division, which oversees search engine Bing, reported a loss of $1.3 billion in 2013 — less than the previous year but still in the red.

      Some investors have suggested that Microsoft spin off its money-losing consumer products and focus solely on the enterprise. Even the Xbox deserves to go, Paul Ghaffari, the wealth manager for Microsoft co-founder Paul Allen, said last year.”

      Stuff like that.

      The issue is that what they claim ‘Xbox Division’ has made, is misleading. They combine sales of numerous divisions alongside the Xbox Division to make it not seem as big of a loss. Xbox division has not made a single profit since its been made.

      As reported in the article: “Microsoft’s Xbox division has lost nearly $3 billion in 10 years”

      It shows in 2013 that it has never made a dollar on the Xbox Division alone, if you ever see Microsoft claim ‘Profit’, it’s because various divisions are combined to mislead people into thinking it’s fine. Investors have been complaining and telling them to ditch Xbox for a while now, just google those key words. Not sure if they’ve quieted down of recent, but being that Xbox 360 was successful, yet didn’t ‘make profit’ to compensate losses, Xbox One which isn’t as successful in total sales can’t make up for the losses alone since its sales are lower than that of the 360.

    • DLConspiracy//

      Typically you don’t behave in this fashion but hey do what you like. Sorry to see that people are more concerned with the demise of Xbox than actually playing games anymore. I don’t wish or pray secretly that PS dies and fails but some of you guys really really hope for this kind of crap. Some people need their gamer cards revoked and torn in shreds in front of them.

      The ONLY people who should care how well Xbox is doing are the people putting money into it. If the head of Xbox isn’t worried about it then nobody else should be. Especially those who don’t own and continuously turn gaming into a “who’s got a bigger penis competition”. So all this theory of XBOX going away is pointless. If they are making 2 new consoles one of which is more powerful than the neo. Than sorry to say Xbox ain’t going anywhere.

    • Jason Mounce

      I’m just stating facts, I’m not showing any emotional ties to any of this nor am I rubbing my fingers together like you seem to imagine me doing. I just stated Facts of what is happening, what is true, and what happened and the articles I read before. Nowhere did I state my own personal opinion, I just copy-pasted what I read when someone asked me where I heard it from. He asked for proof, I provided. Nowhere did I write what ‘I’ wish or want in my post, lmao.

      “I don’t wish or pray secretly that PS dies and fails but some of you guys really really hope for this kind of crap.”

      k there, continue jumping to conclusions. Idunno what bandwagon you’re trying to create against me, but I know you got nothing. Sorry if posting articles of things investors have said about the Xbox Division hurts your feelings.

      And the people who care about how well Xbox is doing are investors, whom are the people I’m talking about, who definitely matter when they have a huge share in the company and start getting angry because their share’s worth is dropping because ‘Xbox Division’, then yes, me pointing out that them being upset, and the ones being upset are ones with a lot of weight behind their words should matter to people in the business world. The ‘head’ of Xbox isn’t going to show concerns because that’d look bad for the company even if the facts point in a foul direction.

      I’m not theorising, I’m just stating that when things go bad, investors start demanding things happen, just as Sony investors were upset at Sony by how badly PS3 was originally selling and thought that it was going to sink Sony, but they kept pushing through and got past it.

      2 New consoles, 1 slim but has no performance boost – and then Scorpio. Sony is going to be doing the same thing, but this has absolutely no relevant to Profits that don’t exist in the Xbox division, you’re not making any sense. If they make a stronger Xbox, then that means there’s more variations, which means More/different types need to be manufactured, and the parts will cost extra to get the horse power (Varying on Launch cost of Scorpio, we won’t know how much they lose per sale, or gain). Them making ‘2 more consoles’ makes you claim ‘Xbox ain’t going anywhere is a very, very bad rhetoric.

      Either way, tl;dr, Satya Nadella may be the person as people had foreseen to be the one who may discard Xbox at any moment if things go too south. I’d advise you to learn to read better for future scenarios where you respond to me, since you took my post which was merely copy-pasting Articles and Facts of events, and you twisted it to make it sound like it was my personal opinion or, more or less I didn’t even add my personal take on it and you shoved words in my mouth. Pretty immature imo. So, no, I don’t know what you think regarding your first sentence of: ‘You dont usually behave in this fashion’, but your perception is wrong nonetheless since you twisted my post and made it sound like I put any investment into it.

      Competition is good for the industry, so ‘my’ personal take will always be that there needs to be competition to keep things healthy. That said, it’d suck if Xbox went, but I see it as a potential in the future if they don’t make profit from the Xbox Division, instead of hiding the losses behind separate divisions.

    • DLConspiracy//

      Give me a break every concern Troll tries to hind behind supposed “facts”. Well if investors wanted to close up shop on xbox. They would have. They certainly wouldn’t green light 2 new xboxs for assembly.

      Regardless. There are too many assumptions in your facts to be just facts. Here are the facts. “The majority of xbox one investors are always complaining about xbox”. How many investors are there? Since you seem to know the majority are against it. When you only cited 2 examples. More facts. Xbox One S and Xbox Scorpio are getting made. Investors signed off on it. End of story.

      I can read and I can also read between the lines especially when it’s rather obvious. It’s pretty typical for most kids to put xbox in negative light. It’s the cool thing to do. Always a dark cloud over everything they do. Every person at xbox is a douche and all the Sony employees hand out chocolates and teddy bears. It’s utter nonsense.

    • Jason Mounce

      They warned it, and Microsoft must’ve silenced/persuaded them. Them greenlighting new consoles is because it’s in the CEO’s interest over the investors interests. Companies don’t need to bend to the demands of investors, I merely stated that Satya may be one to ditch it, and investors were angry. Both were fact and were a foreshadowing that came up a 2-3 years ago. They can continue making consoles and they no doubt will, but if problems resurface internally, it’s merely a smart decision to keep an open mind that things can go wrong. Am sure Sega fans wouldn’t have thought Sega would just throw the towel, but then again, they didn’t have money to support the costs where Microsoft does, but that doesn’t mean continuing to support a the division is in the entire companies interests. Just as Sony started cutting off other divisions of theirs to make up for losses like they had with Bravia TV’s and the like a few years ago. Cutting off divisions that don’t make ends’ meet is normal. Whether you want to refuse such a potential reality or not is what makes each individual deluded and narrow-minded. I just speak of Variables.

      The link I provided mentioned ‘2’ heavy-lifting investors. Knowing ‘How many investors there are’ is a redundant question. An investor will always have interest in a company whos’ stock is high. Stocks may go down if a division isn’t doing well, this is normal. Investors complaining about things not working properly is normal. The ‘Number’ of investors doesn’t matter, it depends on how active investors are with their investments and the companies they back. Some just idle and sit by, others take action and use that influence.

      “Investors signed off on the xboxes being made” – You wut? Why are you saying Investors have the power to ‘sign off’ Xboxes as if they control the company? Wut.

      You’re not good at reading inbetween the lines when you implant what you ‘want’ to see inbetween the lines. Painting people as a villain because you get a ‘feeling’ is not something you should boast. It’s also pretty typical for most ‘kids’ to put Sony in a negative light and it’s becoming hip to hate on Nintendo, your point?

      Here’s where your biases come out to play where you say “Xbox is villains, Sony are angels” sorta rhetoric, you’re just throwing that out of the left field and it’s pretty childish. You’re going so off topic with my original post that you’re twisting it from me talking about investors being upset and loss of profits, to you painting me as a ‘Sony fanboy ‘kid who’s hating on Xbox cause xbox people are douches and you must praise sony cause they can’t do no wrong’ sorta warped perception.

      I think you need therapy if that’s how you see the world with people you look at. That’s not how I view the world, but if thinking that way makes you sleep better at night with your ‘I can read between the lines and I can read your mind because of this and I see that you view Sony like gods!’ kind of idiotic mentality.

    • DLConspiracy//

      What ever you say jason. I would like to think that the fact I’m an owner of both the consoles in question here is pretty open minded. I don’t just rattle off nonsense about PS ever. I merely point out some of its fans and their bias. People have been saying that Xbox is going away soon since the start of this Gen and like I mentioned they just green lit 2 new consoles. That doesn’t seem like they are going anywhere anytime soon. So quoting 2 “heavy investors” doesn’t seem to matter.

    • Alistein

      First of all I have checked and googled your question and all that comes up is thesame thing , the news here is mainly based on windows and it’s losses not Xbox. I also don’t see where it says the xbox business has never been profitable. There are a ton of articles that disprove this findigs, but like I said it’s always better to check the financial statements for yourself. Earlier last year phil spencer was interviewed on Ign and he said the Xbox division was profitable also Peter Moore pretty much nodded that the Xbox division had been moved up in Microsoft in thesame interview. Also I think it was J Allard that said when the X360 came out they were making money. In actuality it is the Xbox console(hardware) that has never been profitable not the business. Last generation they lost a lot on the console due to the red ring problem but they made a ton of money on software and Xbox live. Most people confuse the hardware loss to the entire business. There are big time main share holers like Paul Allen thst prefer MS not dabble in hardware and thus favors selling the hardware division for Xbox , however with Windows 10 that reality is close as Xbox becomes more of a service and can focus on UWP and less on consoles thereby becoming more profitable and levying it’s console loses on the profits from the service.

    • Alistein

      As concerning the article for the 3 billion loss read this snippet below.
      http://www.neowin.net/news/report-microsofts-xbox-division-has-lost-nearly-3-billion-in-10-years Ben Cousins, a game developer who has worked at EA, Sony and other studios, currently works at Scattered Entertainment, which is making a first person shooter for the iOS platform. In a Kotaku article, he states that game consoles are sold at a loss so companies such as Microsoft can get the money back via license fees from each game that are sold on their systems. He shows, via Microsoft’s own financial numbers. that the Xbox division has lost close to $3 billion in the last 10 fiscal years. Sony’s gaming division lost even more money in the same time period, with a lost of almost $5 billion. Those number do include costs such as research and development, hardware production, marketing and PR and more which makes his personal view skewed.
      Notice the hardware is sold at a loss and money is generated through licensing on software to offset the loss, also notice the 3 billion dollars loss is not from Xbox live or software but from research and development, hardware production, marketing and PR just on the Xbox One the R&D was over 3 billion.
      Here are a few articles that shows the Xbox division has been profitable
      http://www.forbes.com/sites/velocity/2010/06/17/microsofts-xbox-live-is-making-boatloads-on-virtual-goods/#2f069a7175c0
      http://thenextweb.com/microsoft/2013/04/19/inside-microsofts-earnings-windows-8-and-the-xbox-money-machine/#gref
      http://www.cinemablend.com/games/Xbox-360-Has-Generated-56-Billion-Retail-Alone-43000.html
      https://www.yahoo.com/news/microsoft-sells-over-67-million-xbox-360s-19-001223993.html

    • Jason Mounce

      I can’t go to forbe sites since I have them blocked and it keeps sending me to a ‘Welcome’ page, but as for the 2nd link:

      “Entertainment and Devices
      This was the breakout success for Microsoft in the most recent quarter, with revenue of $2.53 billion, up 56% year over year. That said, deferments were at play”

      They don’t mention profits coming from Xbox Division, but ‘devices’ as a whole. Microsoft makes more than just one device. So, the 2nd link doesn’t help much except explain the profits they get from Subscription fees. This also doesn’t mention any cost that it takes to keep their servers that maintain and stay online the whole time.

      3rd link, you’ve then been misled by Microsoft. Pay attention to the wording a bit properly: “Since 2005—when we launched Xbox 360—we have sold 67 million consoles and have generated more than $56 billion at retail”

      Emphasis on $56 billion ‘AT RETAIL’. This is not total profit, this is how much they sold at retail/stores. This means it’s not a calculation that involves deductions or losses, merely “We sold $399 consoles to 70+ Million people” statement. As you can see, if we combine a rough value of $399 + the number of people who bought a 360? It comes up to around $56 billion. This does NOT cover costs/R&D/manufacturing/marketing, etc. They no doubt gain from Subscriptions though, as Sony would too. Depends on the cost of the servers to stay operational, that, we don’t know.

      4th link is a complete repeat of the 3rd link.

      So, I hope we learned something from this, when it comes from guys in suits, and people who’re good at business? Being misleading is pretty much essential, and Microsoft is very good at being misleading. $56 billion in ‘retail’ is not ‘$56 Billion Total Profit’. This does not counter-argue me providing the fact that they’ve not made a penny on the Xbox brand. Sony does similar things, where they sell Playstations at a loss, it’s not unheard of, but Sony is also used to making up for the losses via other divisions too. This is not abnormal, the difference is that Sony also makes consoles that ‘CAN’ sell at an actual profit. Whether Sony in comparison has sold enough PS4’s to make up for marketing/manufacturing/R&D and online costs? I don’t know.

    • Alistein

      The link proves the profitability of the Xbox live and the software making side.
      (They don’t mention profits coming from Xbox Division, but ‘devices’ as a whole. Microsoft makes more than just one device. So, the 2nd link doesn’t help much except explain the profits they get from Subscription fees. This also doesn’t mention any cost that it takes to keep their servers that maintain and stay online the whole time.)

      From second link “In short, leading console sales, rising subscription income, and high-monetization of active users are driving the Entertainment and Devices division forward. “It’s a great business,” Nelson told TNW with enthusiasm.”
      It just said the Xbox division business was up and driving the Entertainment and devices forward that doesn’t sound like a loss but progress to me. Also I have reiterated it over and over again, the Xbox device is not profitable as R&D is part of the cost and selling at a loss not to mention the red ring of death problem that had the company replace the console many times over. It could be profitable now as they haven’t encountered the 360 problems. As for the cost of maintaining their servers that can be generated from Ads, other cloud businesses they use the cloud for , over 50 different services are listed on Azure and Xbox live is only a part one of the reasons some call for free online as with Pcs.
      3rd link. I have not been misled by MS. Also 67-70 million consoles at 399 amounts to roughly 28 billion a far cry from 56 billion. That’s close to 30 billion short. Considering the console their was a price reduction and sales 399 is a bit off to use but even at that and even including kinect that comes to about 30 billion leaving 26 billion even with R&D/manufacturing and marketing that’s still a lot. No way you slice it.it was profitable as that was even why this number was touted.

      There was never the question of guys in suit not misleading just as websites can be misleading. And yes 56 billion in retail is not equivalent to 56 billion in profits something I never wrote. The 56 billion dollars is clearly written as money generated and on the contrary you’ve yet to show the xbox division as unprofitable your posts pretty much mention the windows loosing money not Xbox and your statement saying they’ve not made a penny on the Xbox brand I find to be false as you yourself attested to xbox live making money which happens to be a part of the Xbox division.
      Yes Sony sells at a loss as well and offsets those loses through software(Games) like xbox not other divisions . Both companies make about 20 percent or more on software (games). Sony took a pounding on the ps3 because of the high cost of the cell architecture. I know they’re able to make money over time as tech gets cheaper over time due to fall in prices but it is similar for Xbox.
      How does Sony make consoles that can sell at a profit far as I know the ps3 had the cell problem , the only ones that sell at profits would be Nintendo as their consoles are based on last gen cheap tech. Both Sony and MS have to wait for a refresh where they can update their console cheaper like with the ps3 slim and Xbox 360 elite last gen.

    • ShowanW

      this WAS true. investors have shut their mouths the past 24months or so.

      once phil spencer and satya nadella said xbox isn’t going anywhere.

      people love doom and gloom stories…

  • Panty Sniffer

    as a pantie sniffer, i love this read

  • Mr Xrat

    Says the losers.

    • HaCkEr_Fc

      FaNbOy!!!

  • DLConspiracy//

    I just hope that PS4 gets a sales ticker added to the top right corner of my PS4. That way I can keep track of sales and know that I can truly enjoy my console. Otherwise if it’s not number 1 I would hate my ps4.

  • traind

    In business it is about maximiziing profit across your portfolio. Focusing on volume with one product is not always the best strategy. Clearly they have a different strategic approach that you can see by offering consumers the choice of which platform they play on. Windows is Microsoft’s Big Money Maker while the Xbox is profitable it is nowhere near the size. For Sony it is the opposite.. the PS4 is the money maker and the rest of their business –at least their consumer business— is struggling mightily.

    All the comments like “so say the losers” show that you are looking at this through a consumer’s perspectives or a Fanboys perspectives. You have to try to look at it from the business and profit point of view. That does not mean that this will be the best strategy in the long term but it certainly seems like a viable approach to me when you look at their entire portfolio.

  • Funny

    I’m sure that if Xbox was topping the sales charts, they would’ve been bragging about that every chance they got! Giving people the cross play option is just an opportunity for them to announce sales figures collectively. To basically fluff their numbers.


 

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