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

July 27, 2007 in News comments 33

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?

Despite the losses, quarterly revenues were up 60% due to continued PS2 sales and a price reduction of the PSP. The company said that more than 70% of sales were on hardware and accessories.

While speaking to investors, Sony suggested it may be able to break-even on PS3 hardware within the next year due to lowered production costs of the Cell processor, the PS3 graphics card, and Blu-ray components.
ITANI via gamepro.com »
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  • 0
    Storm Jul 27, 07
    That's a shame...ah well, Microsoft has cash...or was it Bill Gates that does? But doesn't Microsoft gain profit from their 360? I know Sony doesn't with their console. Though the billion dollar losses make it all seem worthless.
    • -2
      Final Blade Jul 27, 07
      No they never gained profit from neither of there systems, sony however knows what there doing and will respond actually, they already have Hehe.
  • 1
    Existenz Jul 27, 07
    Bill Gates and Microsoft are two different things, yes Bill Gates owns Microsoft and he reaps the "supposed" rewards but the gaming division of Microsoft don't have the kinds of money he has to spend, none of their consoles have made a profit the Xbox didn't and the Xbox 360 deffinately isn't, while Microsoft has a lot of money it is all spread over all their ventures and a huge chunk of it goes to paying employee's, out of what is left Microsoft's gaming division probably only had a few billion to spend on production and development which they spent and now in their fiscal year(started March 2007) they have lost over $2 billion.
  • 1
    Cdemon Jul 27, 07
    They're earning money from the PS2, no? How is that prove that "Microsoft lost more money than Sony did with its next-generation console venture?"

    The X360 will be profitable before the PS3 will, seeing as how it cost less to produce at launch.
    • 0
      Final Blade Jul 27, 07
      But i think there referring to xbox hardware failures recently.
    • 0
      volacide Jul 28, 07
      That's not necessarily the truth considering all the hardware problems and the how much it is costing them. Consider how many people are having this problem, and multiple times even.
  • 0
    bbb7002004 Jul 27, 07
    The 360 is already picking up a profit off each console sell, this profit is just crushed under the warranty extension costs.
    • 0
      Final Blade Jul 27, 07
      No there actually losing money from the Warranty.
      And cdemon same can be said for PS3, which they are slowly coming up to fix that. But i don't know how long it will last the xbox.
  • -1
    Cdemon Jul 27, 07
    Which can easily be made up in future hardware/software sales.
  • 0
    Evanster Jul 27, 07
    Microsoft is getting owned by everyone now.
  • 0
    King X2 Jul 27, 07
    I could understand their Xbox sales keeping them down in the dumpster, but Microsoft's computers and hardware certainly don't have bad sales. The 360 isn't selling well, so I suspect that's the problem.
  • 1
    Bread Effect Jul 27, 07
    Very true Cdemon. Though, I don't think this will be that simple Microsoft really has to get out of this huge amounts of crap happening to them or else they're not going to last much longer. =*(
    • -2
      Final Blade Jul 27, 07
      Besides Cdemon didn't xbox have a similar problem and they didn't do so well. Well as the saying goes Only fools rush in, which they get slaughtered. But wise and careful men, make it out alive.
  • -1
    FRoGBuster Jul 27, 07
    I woner how much money they will both lose in the Next Generation? PS4s and XBOX 1080s
    • 0
      Final Blade Jul 28, 07
      If there is a next gen for MS.
      • 0
        Krunal Aug 1, 07
        Why in the world wouldn't there be a Next Gen MS? They've proved themselves this generation, they're obviously going to try next gen.
        • 0
          Final Blade Aug 3, 07
          Um not when a company loses 6 billion in 6 years and 2 billion due to RRoD and others it shows you that they can't hold up and make another. But since were talking about MS im sure they would make another. Also the sales is a little half way of the original xbox final sales. In the end MS system will sell about 30 million, not something to be happy about.
  • 0
    Storm Jul 27, 07
    People people people...don't you think you're a tad too strict on the Sony fanb/g-ism to be thumbs down'ing me for my opinion? I didn't even say anything bad about Sony.
    • 0
      Final Blade Aug 3, 07
      Um its not sony fanboys doing this, people probably didn't like your post. Just like you don't like mine.
  • 0
    Cdemon Jul 27, 07
    quote
    Well as the saying goes Only fools rush in
    So you're calling Sony fools, no? They sure as hell pushed to make the PS2 the first console out during its generation.
    • -3
      Final Blade Jul 28, 07
      True however they didn't have the mass amounts of problems like MS is having now. Also they have more money than MS in this business.
      • 0
        Cdemon Jul 29, 07
        They had the exact same problems; a console with a hardware flaw that was fixed within the first two years.

        And it doesn't matter if they have more money in this business because Microsoft has more money than them overall.
        • 0
          Final Blade Aug 3, 07
          Oh yeah how is that helping them, i mean seriously they made a flawed design from square one. If they had all this money as you claimed why have they not make the best structured console from the beginning. Also the PS2 is alot different than PS3.
  • 0
    Synergized Jul 27, 07
    Everything's going to be the same for awhile. The Xbox 360 and PS3 are going to fight it out, even though the 360 is winning, and try to overcome each other to prove a better console, while the Wii just soars above them laughing. Then, it should eventually turn, either the 360 or PS3 beating the Wii in the long run. Shame that Microsoft is losing so much money, but like I've said before, it's their fault.
  • 0
    Supernouva Jul 27, 07
    Microsoft is not a company that'll stay down for a while.
  • -1
    chubbie huicho Jul 28, 07
    I wasnt expecting this but I guess it makes a bit of sense but.... Microsoft will recover fast
  • 1
    weskraudaon Jul 28, 07
    Sucks for them but at least they are winning.
    • 0
      Anime Aug 1, 07
      Hehe, yes thats one gold star for Microsoft finally. xD

      คภเ๓є
  • 0
    Theory of Chaos Jul 28, 07
    Maybe they should make games worth $150. That way they could finally get some dough.
  • 0
    Tom Jul 28, 07
    Microsoft and gaming don't really mix. I'm kinda happy for once that Microsoft are beating Sony at something, and I hope this Bill Gates and co what a tough market really is.
    • -1
      Cdemon Jul 29, 07
      How exactly don't they mix? You'd be hard to find a gaming PC that isn't running Windows... and Xbox Live introduced a truly revolutionary online service for consoles.

      They've done more for the future of gaming in the past five years than Sony have, IMO. To say they don't belong or don't mix is just plain ignorant.
      • 0
        Final Blade Aug 3, 07
        PSN has achieved the same in 8 months, as XBL has in 4 years, whos better.
  • -1
    tidus04 Jul 29, 07
    They both make losses but at the moment the 360 has more units to the consumer. Either way Microsoft are way in-front and with Gates behind them they can try anything and always have the funds so I doubt the recent set back means anything.

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