SabbraCadabra wrote:
Jaden wrote:
I bet if we take all the money that microsoft has made on the crappy systems they've produced (note, just the ones that have failed), we'd be able to fix the economy. I wish that was a joke, but sadly it might be accurate.
Don't they lose money on every console produced?
Not necessarily, the only people actually losing money is the consumer, because we're paying a base price for a product that doesn't perform the way it's supposed to, so then we have to spend yet more money to fix it or send it in (like 360's before this), which often leads to spending an individual cost of over $100, and when that doesn't cut it, we're spending yet more money for another system, once again at the base price.
So, let's say the base price is: $600
But it breaks down, so you have to send it in (if 360 is any indication) $100
But then that one doesn't work either and it's used, so you buy a new one $600
Already at a bare minimum the consumer has spent in excess of $1300
Since the baseline for this construct is the xbox 360, which has sold over 80 million systems worldwide, and the estimated fail rate was stated at one point to be about 1/3, that's roughly 26 million consumers worldwide spending at least, or more than $1300 and that's if they owned only two.
So multiply $1300 and 26 million and you get a basic idea of what has been gained on bad products.
And unless they're losing billions and billions of dollars making them (doubtful since they'd go out of business with one bad turn), they're most likely making a profit at our expense.
Now, granted, not all 360's had such a bad fail rate and this is a rough model so it doesn't account for time, but you get the idea. You could probably at most, cut the final profit in half, from this model, to account for time, and maybe 1/4 from that because of slight price drop. But once again, you get the idea.
If there are any mathematicians who could give us all something better than a construct based on current numbers vs. old fail rates, I'd greatly appreciate it, thank you for adding if you do.
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