Originally Posted by FatalProximity
Originally Posted by Captain318
As long as you are in the Black and not loosing money you are successful. Not hitting your projections doesn't mean you are a failure. Red Ink does though. I'd argue the XBOX was and still is a flop because it doesn't make money and is and always was nothing but Red Ink for Microsoft.
Sorry but this is incorrect. You need to factor in the cost of lost opportunities based on their decision to create the Gamecube to determine if something adds value to the company. You have to subtract the value of the next best alternative use of the funds invested from the accounting profit. Therefore being in the black from an accounting standpoint doesn't necessarily mean that they made the correct business decision.
Regarding your xbox comment, you're again mistakenly using accounting profit rather than economic value. Although the xbox may have lost money on paper (I'll take your word on it), it created a very valuable brand for microsoft that it would profit from in the future.
As of the end of 2012 Microsoft had cumulatively lost over 2 Billion on Xbox.
More losses were reported on the launch of the Xbone.
If they've made any profit at all, it's a very recent development.
Even more interesting is that these already bleak numbers may be unrealistically positive because of patent licensing on Android phones.
Which at the outset sounds horrible, but if I think about it a little more selfishly, I kind of like the idea that Microsoft is effectively funneling money away from the Mobile sector into a high end gaming machine.
If I could steal billions of dollars from my competitors and put it into anything I want, the Xbox might not be too far off from what I would try to accomplish.
Really the Xbox program is one of the most altruistic things I've ever seen out of a megacorporation, if that sort of concept can possibly be applied.
And just imagine where gaming would be without witnessing all these gross failures? The current position of the PS4 is just as reliant on Microsoft's bad decision making as it is on Sony's good decisions.
Gaming is mature, but it's still not a century old industry, everyone is still rapidly learning and the bigger the industry is as a whole the more everyone benefits.
I'm specifically impressed with Phil Spencer, I know he has limited power, and "Microsoft" is still a mutilated corporate abomination that is ultimately in charge, but after the Xbone disaster he seems to be doing a good job of channeling the Xbox in a positive direction.
Regardless of whether or not they make any money, the Xbox story is very interesting, and I'm excited to see what happens with Xbox in the next few years (Scorpio's 4K focus is practically a dream come true for me).
Edit: To be more on point, I agree, the biggest battle that any corporation fights is simply "mindshare". There are millions of people who want to stream messages into your brain and only a small, small percentage of those messages will ever reach you. For a product to seen by someone is an accomplishment, to have a product that is used by people for multiple hours a week, specifically in the formative years of their life, is one of the highest goals a corporation can possibly achieve.Edited by ILoveHighDPI - 8/4/16 at 3:22pm