Microsoft subsidised Xbox Hardware to the tune of $1.5B in FY21

Satoru

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Found in the FTC's document leak, Phil Spencer confirms that the Series Consoles were to be subsidised at least $1.5B during FY21.

nhnpRC1.png
 

arvfab

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"budget for AM" = Advertising and Marketing?

I think it's something else.

It talks about TAM at the end, which seems to be

Total Adressable Market

Would make sense combined with the 200M units/generation remark.
 

historia

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I think it's something else.

It talks about TAM at the end, which seems to be

Total Adressable Market

Would make sense combined with the 200M units/generation remark.
So PS5: 130 million
Shitbox: 60-70 million?
 
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historia

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Probably depends on how the Switch 2 will be considered.
Switch 2 if keeps momentum probably about 130-140 million, same as Switch.

My guess is Switch will land at 146 million, more than PS5 and PS4, but less than PS2.
 

Entropi

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And they still, somehow, managed to produce an inferior product after all the planned subsidies.
 

ChorizoPicozo

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the level of bullshit inside MS/Xbox are incommensurables....😈 can't wait to see MS/Xbox struggle with mismanagement, culture clash, power vacuums, people leaving... a total cluster fuck after the ABK deal is approved. 🤣😂
 

Entropi

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I think this means they took a 1.5 billion dollar loss on the hardware, not the prototyping of it.
Or this is by design, so, when prototyping, it gives you more wiggle room to add more power/features.

Like every other xbox before xss/xsx
 
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Satoru

Satoru

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Or this is by design, so, when prototyping, it gives you more wiggle room to add more power/features.

Like every other xbox before xss/xsx

No. This is for FY2021, meaning post-release. FY21 runs between July 1st 2020 and June 30th 2021, so this is entirely related to the production and release cycles, and involves the subsidy of selling HW at a lass.
 
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