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Was it really profitable when it was doing things fans did want? The original console was a massive loss and a mess because they didn't know what they were doing. The 360 gave them a few good years but in the end the ended the cycle in second place yet again. Afterwards it was years of being distant third. Will Microsoft ever recoup that investment? The only good years they had were because their competitor stumbled momentarily. How good was the brand when they never really made inroads into asia?

(I say all this as someone enamoured with the first console as it was a core moment of my upbringing)

discuss

willis936|9 days ago

Of course it was. The proof is in the pudding. You don't go from a skunkworks program to a major division without profit. Selling millions of consoles and games for hundreds of dollars with healthy margins is a printing press. The issue is while searching for making the printing press to have ever growing margins you squeeze the soul out of the product and make it so your customers leave. Optimizing for 3 months out kills you in 24 months. This is textbook enshittification. It is very obvious when it's happening and it should be very obvious when looked back on.

It was xbox yesterday, it's Windows today. Microsoft is on the way out.

nebula8804|8 days ago

I'm not so sure. Your comment is based on assumption that all they needed to do was launch the thing and then its free riding there. This is developing an entire platform we are talking about.

The original console cost a billion dollars to produce(confirmed in the documentary here: https://youtu.be/yT_i6hXf9WU?list=PL0il2l-B_WwadxfTkK3-NLoYN... ).

There are xbox engineers confirmed reading these forums so maybe some of them can shed some light but it seemed like the first console was a dud for multiple reasons and they killed it off early. Why would they do that if it was making money?

The second console was on its way to being a blockbuster until the RROD issue cost them at least a confirmed billion dollars in losses(also mentioned in the documentary here: https://youtu.be/z2d6IMBS8oY?list=PL0il2l-B_WwadxfTkK3-NLoYN... ).

So thats a confirmed negative two billion dollars and we haven't even talked about the cost to develop 360.

Sony caught up to them after RROD and managed to turn PS3 around so 360 didn't even end the cycle as number one in sales. After that, they never had any real success again and continued to fall further behind until today.