Microsoft Console Boss Says XBox Will Be Profitable, and Flip-Flops On Nintendo
By Ron on Saturday, May 5th, 2007 at 8:47 AM PST In Game Companies, Game Consoles, Game Platforms, Games Industry, Microsoft, Microsoft, Nintendo, Sony
Robbie Bach, the president of Microsoft’s entertainment and devices division, says that he expects the company’s console business to turn its first yearly profit in 2008. Bach said, “It’s a business that will be profitable next year. We’ll make money next year and that will be the first time, which is pretty exciting.” Last week, we told you about the losses that the division had posted this year, totaling over $300 million.
Bach also said that he feels that Nintendo and Microsoft are the leaders in the console wars, “I think Nintendo and Microsoft are clearly in the driver’s seat on what’s happening in this generation,” he said. “Sony I think has some real challenges. They’ve got a pricing problem, they have a cost problem, they have a content problem, and they don’t have an online service.”
The interesting thing about this comment is that on Thursday, Bach said in a separate interview, “The rest of [Nintendo's] product is actually not a great product—no disrespect, but … the video graphics on it aren’t very strong; the box itself is kind of underpowered; it doesn’t play DVDs; there are a lot of down-line components [that] aren’t actually that interesting,” said Robbie Bach in an interview with eWEEK. “The challenge for them is figuring out, “Hey, how do I broaden beyond a casual demographic?” We’ll see how that plays out.”
So, which is it? Is Nintendo right behind Microsoft, or is it a product that isn’t so great? You can’t have it both ways, Mr. Bach. It sounds like he’s maybe trying to moderate his comments from earlier this week. In addition, I’d like to point out (again) that the reason the Devices Division will make money next year is fairly simple. The cost of producing the 360 will drop markedly, because nearly all the 360 sales are already done. Making less costs less, every time.
Hahahaha, I think he was just trying to point out how Microsoft is superior. I think the lack of a DVD player, and the fact that the graphics aren’t top of the line, really help support Nintendo’s manifesto with the Wii. Most consoles are becoming all-in-one home entertainment suites while Nintendo is trying to focus on the games. Which is why people buy the damn console in the first place. I see it as a kind of purist approach. Besides that, with the Wii they’re going after a larger demographic than just hardcore gamers. They have been successfully getting people to play their products, even buy their products, who normally wouldn’t have even touched a video game without attaching the normal stigma that comes with Video games. It’s making video games fun again, without having to include intensely complex story lines, or senseless violence. I think that is a huge step up in improving the image that video games have in our society.
Unlike some other companies that are doing it just for the money, and have no idea how the market works and won’t even put it’s foot down when dealing with it’s publishers. I’d go for morals over greed any day of the week.
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