gary94080 wrote:I use the Xbox mostly as extenders and just have a few games. what do you get with the recurring subscription fee?
Access to online content such as Netflix requires an Xbox Live Gold subscription.
kingwr wrote:But its clear you don't know any information and are merely speculating like the rest of us.
My position is that Option A (Xbox) has greater profit potential than Option B (Softsled). That's not speculation...it's a fact. If you disagree, I challenge you to prove that if X represents the amount of money that Microsoft could profit from the sale of a single copy of Softsled, it would be impossible for Microsoft to profit X + 1 from the sale of a single Xbox. Alternatively, I will also accept your proof that X + 1 < X.
It is also my position that Microsoft chose the current option in an effort to maximize profits. Again, that is not speculation...it's a fact. There is not a for-profit business in existence who's ultimate goal is anything other than making as much money as they possibly can. Of course, you are welcome to try to prove me wrong. Prove that Microsoft's ultimate goal is anything other than maximizing profits.
kingwr wrote:Further, breaking someone else's comment down and attacking it point-by-point doesn't bring credibility to your argument, as you evidently imagine that it does.
When a post has multiple points that deserve a response, I will respond to each point, ensuring that the context of my response is evident.
kingwr wrote:Yes. The XSled extender was release by the eHome group as a game for the XBox. The XBox group didn't have this anywhere on the radar. It wasn't until a year and a half later when the XBox 360 was released that it had built-in extender functionality and a green button on the remote. SoftSled had come and gone by then.
I didn't ask you about the eHome team or the Xbox team. I asked you about Microsoft.
kingwr wrote:To make money off of Windows MCE licenses from OEMS, not from extender sales themselves.
kingwr wrote:Every observer knows that XBox sales makes no money for Microsoft. They take a loss on each unit. Its games sales, licensing revenue, and XBox Live revenue where they make money.
kingwr wrote:Further, I can guarantee you Microsoft made more money by selling premium SKUs of Windows 7 containing Media Center functionality than they did from XBox hardware sales.
I'm not sure why you are focusing on the box itself...think about the big picture, not just one piece of the puzzle.
kingwr wrote:Go back to 2007 when everyone was waiting on V2 extenders to be released. The overwhelming opinion at the time was XBoxes made lousy extenders -- big, hot, noisy, RROD, etc... Oh yeah, you weren't paying attention then. I forgot.
2004 <> 2007. Also, opinions are irrelevant. People still bought Xbox 360s to use as extenders, just like they do today.
blueiedgod wrote:Who is paying $100 for Win 7 license?
I quoted Newegg's price.
blueiedgod wrote:And I meant that soft sled option was available in win 7, not just an add on.
Microsoft is unlikely to switch from charging for the extender to giving it away for free, and they don't want to charge everybody for it when only a few people are going to use it (as evidenced by their actions in W8), so Softsled as a paid add-on is the only thing that makes sense to me.
blueiedgod wrote:What other extender devices? The alternatives were shelved due to low interest from the public, and the only currently available alternative it still trying to figure out how to make it work.
Your post was about Microsoft's actions in the past ("If Microsoft wanted the XBOX and its extender functionality to be a revenue generator, they would have required you to have Live Gold account to use Extender"). I assumed that my response would be interpreted as applying to the same time frame as your post. Besides, the older extenders can still be purchased today on eBay, etc.
blueiedgod wrote:Every used XBOX sold on the secondary market could also mean a complete loss to Microsoft, as the owner may have switched to competition. Most people who I bought used XBOXes from had no idea about extender functionality.
The seller decided to stop using the Xbox. It doesn't really matter why, because no matter what, the seller will not be purchasing anything else for that box. So there is no opportunity to make any more money from the seller.
The buyer has two options for acquiring an Xbox. He could buy a used Xbox, or he could buy a new Xbox. Either way, he's going to spend the same amount of money on "stuff" for the Xbox, which means Microsoft's cut of the sales of the "stuff" will be the same regardless of whether he purchases a new box or a used box. The difference comes down to how much Microsoft loses if he buys a new Xbox.
In mathematical terms:
P = Profit from "stuff"
L = Loss from the sale of a new Xbox
P > P - L
Alternatively:
P
1 = Profit from the "stuff" that person #1 bought for the Xbox
P
2 = Profit from the "stuff" that person #2 bought for the Xbox
L
1 = Loss from the sale of new Xbox #1
L
2 = Loss from the sale of new Xbox #2
P
1 - L
1 + P
2 > P
1 - L
1 + P
2 - L
2