MS Xbox Division - Profitable in 2008

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BinaryJack

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I find this fascinating, bare with me and I will reveal why I am so excited about this.

At any stage feel free to correct me.
I have highlighted some of the important bits that ties in with my mini-blog.

http://www.gamasutra.com/php-bin/news_index.php?story=19475

Microsoft Xbox Division Sees $426m Profit In Fiscal 2008
Microsoft has announced its fourth quarter and full fiscal year results, showing recovery from the $1.1 billion loss in Xbox 360 warranty charges in 2007, as its Xbox division sees first-ever yearly profits - of $426 million, up from its nearly $2 billion total loss the year prior.

Xbox 360 hardware and software and PC game sales were the primary contributor to the Entertainment & Devices division's fourth quarter sales rising 37 percent year over year to $1.5 billion. Yearly sales rose 34 percent to $8.1 billion.

Fourth quarter losses were $188 million, down sharply from the $1.2 billion the year prior that resulted from the company extending the Xbox 360 warranty from one to three years, after 'red ring' errors persisted across numerous consoles.

The company says it shipped 1.3 million Xbox 360 consoles during the fourth quarter ending June 30th, 2008, up from 0.7 million the year prior. Yearly shipments were also up, with 8.7 million consoles sold in fiscal 2008 (the year to June 30th, 2008), compared to 6.6 million the year prior.

Overall, Microsoft took in sales of $15.8 billion in its fourth quarter, up 18 percent, and $4.3 billion in profit, with sales also up 18 percent for the full year to $60.4 billion - with $17.7 billion profit.

Said COO Kevin Turner, "Delivering $60 billion in annual revenue is an outstanding accomplishment and a testament to the powerful combination of great technology solutions and strong execution by our partners and global sales and marketing teams. The outlook for fiscal year 2009 is positive given the breadth of our impressive technology portfolio and the expanding collection of online services we are bringing to market."

POSTED: 03.06AM PST, 07/18/08 - Brandon Boyer - LINK
Click to expand...

Now this is the exciting part.

The company says it shipped 1.3 million Xbox 360 consoles during the fourth quarter ending June 30th, 2008, up from 0.7 million the year prior. Yearly shipments were also up, with 8.7 million consoles sold in fiscal 2008 (the year to June 30th, 2008), compared to 6.6 million the year prior.
Click to expand...

Ms shipped 1.3 000 000 units in the last year!
Let's reflect quickly on some of the major titles that were released:
Gears of War, Bioshock, GTAIV (sort of) & Mass Effect...these are some of the major titles that was launched that helped with sales.

When I read this, I realised that the 360 has NOT peaked yet!
We have some major games coming out this year and a lot of them are autimatically system sellers and a few that I think have become system sellers.

The Obvious Big Players (imho):
Gears of War 2 - System Seller
Fable 2 - System Seller
Fallout 3 - multiplatform

Not to mention Sacred 2, Halo Wars, X Blades (our own god of war/heavenly blade), Bionic Commando etc.

The Not-So-Obvious Big Players(imho):
Infinite Undiscovery - System Seller
Banjo Kazooie - System Seller

The above has never been slated as system sellers but I think that they should be.

Infinite Undiscovery will be a system seller:
Why? you may ask, it is for a niche market!
And that is the exact reason why it will be a system seller.
That same niche market was either still playing on the PS2 waiting for PS3 to release FFXIII. They have not bought a PS3 because of the cost and might have been saving for the right time to buy the PS3 because of FFXIII.
Now they dont have to wait anymore, they can afford a system (R3000)that will have FFXIII and have a JRPG available in October made by the same people that are giving them FFXIII.
Infinite Undiscovery will lure all those niche players away from their PS2's and over into Next Gen with the games that they prefer!


E3 for Nintendo was not the highlight for the Wii system that many Wii owners was hoping for...many stated that it was a big middle finger for the hard-core gamer that was waiting for that major title that will satisfiy their needs, unfortunately it did not quite pan out that way.
The advised an ad-on for the wii-mote to make it more sensitive aka fixed and existing problem.
They advised a sequel to Wii Sports...hmmm good move Ninty!

Well, now we have a lot of gamers that was expecting the long-awaited hard core game and...nothing.
All those jaded hardcore gamers that love their platformers but have been playing SMG over and over to satisfy their need now needs to look elsewhere and lo and behold...MS is releasing Banjo Kazooie.
This will satisfy their gaming needs and will allow them to also play a more wider spectrum of AAA games.

Banjo Kazooie has just become a system seller, people are looking for options and on the 360 they have options.
The Wii has let a major side down in their core gaming community with lacklustre graphics and redundant gameplay.
All the new gamers that bought the Wii that has "grown up" from playing SMG and Zelda will now look elsewhere for their pleasures.
More hardcore games that look next gen and the 360 is perfect, in price and library.
 
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Hmm, as per the friggin post I can't get off my darn tag on lazy's site, Those aren't necessarily "system sellers".

Live Prime Time + Netflix, is a system Seller (If MS get the 360 down to $200 and enough momentum behind this, it's market changing stuff).

APB / Champions online are potential system sellers.

Regardless, it's a good time to be a gamer ;)
 
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