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Are you sure the Xbox business is a loss leader? http://www.reuters.com/article/idUSTRE64R63P20100528 http://www.reuters.com/article/idUSTRE64R63P20100528 The
by Goronmon 16y ago
Are you sure the Xbox business is a loss leader?
http://www.reuters.com/article/idUSTRE64R63P20100528 http://www.reuters.com/article/idUSTRE64R63P20100528
The entertainment business is in a stronger position, providing most, if not all, of the $851 million operating profit the [entertainment and devices unit] made in the first nine months of Microsoft's current fiscal year.
- aarongough 16y agoOriginally the Xbox console itself was a loss-leader, with the games being sold to make back the money. Now, I'm not so sure if that would still be true given that they must have made back their initial manufacturing investments by now...
- cma 16y agoIt isn't fair to cherry-pick profitable quarters late in the life-cycle of a loss leader 'razor blades' model product. I don't know how profitable they have to be from now to the EOL of the 360 to be able to say the strategy paid off; anyone?