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Xbox 360 exec Robbie Bach's personal red ring of death: insider sales?
Robbie Bach, Microsoft's executive in charge of the Xbox game console, raised a few eyebrows recently when he sold millions in Microsoft stock just prior to going public with Xbox 360 woes. In a review of SEC filings, Robbie sold some $6.2 million worth of company stock between May 2 and Microsoft's July 5th announcement of charges exceeding $1 billion for Xbox 360 repairs. It is of course perfectly normal for high-ranking corporate execs to turn over company stock. However, this is typically done according to a schedule in order to deflect concerns over insider trading -- Bach's trades followed 8 months of zero sales. Microsoft's stock did not make a significant move after the announcement which, in legal hindsight, has led some insider watchdogs to give Robbie the benefit of the doubt. We'll see if the SEC is so forgiving.
MS's Robbie Bach: Xbox 360 to be profitable next year
Robbie Bach, president of Microsoft's Entertainment & Devices Division, smells profits a'comin. Speaking to eWeek, Bach said that the Xbox 360 "[is 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."As to where the profits will come from, exactly, Bach offers this explanation: Software, both first-party games and third-party title through royalties Xbox Live: Bach relates this to an amalgam of subscription, ad-based, and download-based business models. Peripherals (e.g. camera, controllers) Concerning the hardware itself, Bach asserts that they will probably break even in the console's lifespan (i.e. as the cost come down, the profits from the units will eventually compensate for the losses Microsoft endured in the system's early years), although he also notes that the price of memory "goes up and down seemingly like a yo-yo."It will be a landmark event if Microsoft begins to turn a profit, since as Bach noted they have yet to do so in the in almost six years since Xbox One debuted.
Robbie Bach: 360 will be profitable in 2008
In an interview with eWeek, Robbie Bach, president of Microsoft's Entertainment and Devices division, disclosed that he believes the Xbox 360 will be profitable by next year. We reported recently that the EDD lost $315 million last quarter, down from $415 million the same time the year before. If losses continue to shrink at a similar rate every quarter, it's reasonable to assume that Bach is correct in his assessment. Bach notes that the Xbox 360 has multiple avenues to generate money. Among them are of course game sales, but Microsoft also makes money from selling ad space on Xbox Live (as well as collecting subscription fees) and selling peripherals. According to Bach, Microsoft is "humming pretty well in the business."Also discussed in the interview is the potential of the Zune and Microsoft's plans for XNA. Hit the "read" link to check it out.
Microsoft exec says Sony stretched too thin
Robbie Bach, President of Microsoft's Entertainment and Devices Division, had more to say than setting us straight on how much the Xbox 360 would cost. Buried in the interview, Bach had a few choice words for Sony. The gloves are off ... even further. Bach likened Sony's business model to that of the various failed invasions of Russia. According to Bach, Sony has overextended itself in trying to battle the DS and the Xbox 360. He further said that Microsoft -- with a resource chest far greater than Sony's -- would be stressed trying to enter the handheld market. The overextended statement could make sense; Sony is trying to compete on two fronts using state-of-the-art technology, which is demanding on production facilities and resources. Microsoft seems to have recognized that Nintendo's business model allows them to compete on two fronts and decided to focus on in-home consoles. Would Sony have made a more prudent decision in keeping the PSP efficient and affordable (or not entering the market at all) while pushing the technological limits with the PS3 or will offering two high-technology gaming solutions result in a major victory?
Sony spread too thin, according to Microsoft exec
Mercury News has some fighting words from Microsoft's Robbie Bach. The President of E&C goes on record saying that Sony is unable to successfully compete in the upcoming generation as Sony must focus its efforts across three platforms: PS2, PS3 and PSP. "I think Sony, frankly, suffers a little bit from this problem, which is they're spread really thin across all these areas. And trying to do PSP, competing with Nintendo, PSP to DS; competing with us, 360 to PS3, I think it does strain -- it would naturally strain any organization."It's interesting to point out that Microsoft, a company with quite possibly the largest monetary battle chest in the world, has avoided the handheld market, simply because the battle against Nintendo would be too resource-draining. While two-front wars have never been too successful, the consumers should feel comfortable in knowing that at least Sony puts dedication behind its products, unlike Microsoft. I'm confident that Sony will support the PSP for years to come, just like they have with the PS2. And that's something millions of currently abandoned original Xbox consoles can't vouch for.[Via GameDaily]
