Rooster! said:
I hope everyone realizes that if it wasn't for the extreme moddibility of the X-Box, it very likely would have died an early death, ala Dreamcast. I'm sure you remember the lack of really decent game on the X-box for a long while (with the exception of Halo and a couple of others)
Dreamcast was highly moddable. It stands right now as probably the most heavily modded console yet. I think it was the first console to run Linux, and well, I'm not sure what else you do with modded systems other than play pirated games. Warez and linux. Anyway, it did that.
MS was supremely pissed at the modders, because MS knows that they basically were packaging a $600 windows PC and selling it for $300. And if it was easy to run Linux or whatever on it, they could look forward to every linux hacker in the world buying the cheapest linux PC ever at $300. Colleges would build beowulf clusters out of the shit, if it were legal. And all that while, MS would be eating that $300 loss for each unit--and presumably most of these purchasers would have ZERO interest in buying games.
SOME STATS:
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And for Varnish saying it "prolly" loses money, that's more like "definitely" or "known as a fact". That's hardware. As far as software, not so sure.. But you figure:
about 15 million units worldwide. average loss of $150 per unit (early ones were bigger losses than current ones, due to streamlining)
total loss = $2,250,000,000
marketing budget (for 1, 2 or 3 years.. I forget): $5 billion
net loss:
7 and a quarter billion dollars.
Claimed titles sold per system: 2 or 3 (anyone help?)
my estimate on average titles sold per system: 10 (which I would say for any console)
royalties: cheap you say? I think Sony was about $10 per title, so we'll say $8 =
$1.2 billion dollars royalty profit
Figure that everyone bought Halo, as one of those 10 titles, so add the remainder from the royalty price and the wholesale price that retailers pay (figure $8 + $22 (developer) + $20 (retailer) = $50, so $22 * 15,000,000)
= $330,000,000
So 1.53 billion dollars of profits to date, versus $7.25 billion in losses
I'm sure I am missing a lot of numbers here. There are probably additional profit sources, and sources of loss as well (R&D?)