Stat of the day: MS 'loses' 25 million dollars giving away free LIVE gold cards to RRoD's

[Zeus]

Nometet is claiming to have done some 'smart math' and estimates that MS has lost 25 million dollars giving away Xbox Live Gold memberships to those who have suffered the dreaded Red Ring of Death. This figure has been conjured up since the year 2005 until now...


o doing the maths, there are roughly 9.5 million Xbox Live Gold members. One third of them will have got the RROD, so 9,500,000 x 1/3 = 3.167 million. Thats 3.167 million people who have been given a month free on Xbox Live. Times that by the eight dollars it costs to buy a one month Xbox Live Gold card and it comes to 25,333,333.

What that means is Microsoft given away at least 25.3 million dollars worth of Xbox Live Gold membership cards since 2005. The figure could well be two, three or four times more. With no official figures it is hard to say.


News Source: <A href="http://www.nometet.com/news/microsoft-loses-25-million-dollars-giving-out-free-xbox-live-gold-cards-with-rroded-xboxes/" target="_blank">Nometet</a>

[chyottone]

Heh, still going with the 33% failure rate. One year ago this might've been "funny". They didn't even consider other errors it seems (DVD-failure, ANA-chip, etc.)

...and what is Nometet? :confused:

[EL_CAD]

We have a Stat of the Day?

[chyottone]

We have a Stat of the Day?There never was any stats for failure rates.

[Zak]

By that logic every XBL 12+1month-card sold on eBay for 40$ results in a loss of (8$*13)-40$ = 64$
The actual profit from 1 month of XBL must be much lower, nobody buys 1 month cards.

[mallinersha]

25 million dollars = Raindrop in the Ocean

[Cue]

"smart math" yeah right.

[jackoneil2000]

I never recieve a 1 month gold for the first 3 replacements, only 1 on the forth replacement.

How much much did MS make by selling extended warranties ($50), post warranty repairs ($130).

How much money did the individual consumer loose when paying for extended warranties with MS & instore and post warranty people that purchased a new xbox 360 to replace their busted one.

Its not the consumers fault that his 360 is busted. So why should they pay with a additional lost month of live that the consumer paid for already.


duuuuhhhhh.

[danight]

so Microsoft charges them self for live? :confused: Its a potential loss not a actual loss. Cant say that every system had gold to start with.

Not to mention it might entice people who had silver to try gold.... then after a month keep it. Si t makes up so of that money. but his math is just flawed to start with.

[crypysmoker]

What about the free month of gold just for starting a new account??
How many of you have 8000 emails for using live with different accounts?

[aayman_farzand]

What about the free month of gold just for starting a new account??
How many of you have 8000 emails for using live with different accounts?

I'm pretty sure you can only create 2 accounts and get Gold trial. The rest created will all be Silver.

[Siku84]

Take the Live prepaid card users in account. Or even the possibility of multiple gold users on a single 360. They all lose a month because of repairs.

And what do you get for waiting a month for another 360, a single 1 month live card. It hurts the consumer more than it does them, M$ can cry me a river.

The only people that benefit from it are silver members. Which we all know majority are Gold members using prepaid cards. IMO, If M$ wants to save money with this they should do a new system where they add an extra month of gold electronically to the gold gamertags they know are associated with the console that was sent in for repair.

It saves them money on the paper, and only gives it to those that actually lost a month of service from their faulty hardware. Instead it's like a gamble, some get a card, some don't. It's ridiculous.

What about the free month of gold just for starting a new account??
How many of you have 8000 emails for using live with different accounts?

If I recall correctly, I believe that only applies to certain "Game for Windows" games and the first 3 accounts created on a single 360. After that 3rd account is made the rest you make become silver, not gold for a month.

I could be wrong but I know this has been the case for awhile last I remember.

EDIT : nevermind, aayman_farzand beat me to it. lol.

[billysastard]

thats like the mpaa claiming that someone who shares a movie online is costing them $1 billion in lost sales, just an outright lie.

[Discounts]

LOL, M$ also lost around 40 million dollars on shipping out boxes for the infected which is why today they don't supply boxes any longer

so much for M$ making profits...also the next low on M$ is that their console is worth $199 USD, and they only make like $20 USD out of every ARCADE sku console they sell. Nintendo is dominating with their cash but when it comes to M$ & SOny, Sony are playing it smart by focusing on profits & not marketshare. i know i lead another topic into this but this is something M$ should think about.

[danight]

Sony are playing it smart by focusing on profits

ummm thats just dumb.... Sony was losing money as a company and a big thanks to that has been the ps3. So your saying its smart for a major company to lose money and then focus on profits.... dee dee dee.

wow...... here i thought sony fired the defense force because they couldn't afford message board spammers anymore.

Sony has played this gen about as stupid as it could be played. Nintendo is playing it smart.

[QrafTee]

Considering LIVE should be free, I don't see a "loss" in any of this.

[grapeape]

thats like the mpaa claiming that someone who shares a movie online is costing them $1 billion in lost sales, just an outright lie.

Not really this would be more like some movie fan whining about something thats never been an issue on the mpaa's behalf. This is nothing from MS its just some guys innacurate musings on a website no one has heard of that zeus decided was worthy to pass on as news even though it wasnt.

[technofranki]

I never recieve a 1 month gold for the first 3 replacements, only 1 on the forth replacement. Me too. Well, I got two games after my third replacement, and I got 1 month of Gold the last time.

[pledo2000]

LOL, M$ also lost around 40 million dollars on shipping out boxes for the infected which is why today they don't supply boxes any longer

so much for M$ making profits...also the next low on M$ is that their console is worth $199 USD, and they only make like $20 USD out of every ARCADE sku console they sell. Nintendo is dominating with their cash but when it comes to M$ & SOny, Sony are playing it smart by focusing on profits & not marketshare. i know i lead another topic into this but this is something M$ should think about.


MS still offers boxes, But they give you the option to ship it yourself for faster return time. Not to be a fanboy but Sony isn't focusing on profits they just can't afford for the ps3 to be any lower. As for Nintendo your right it's a cash cow

[Siku84]

LOL, M$ also lost around 40 million dollars on shipping out boxes for the infected which is why today they don't supply boxes any longer

MS still offers boxes, But they give you the option to ship it yourself for faster return time. Not to be a fanboy but Sony isn't focusing on profits they just can't afford for the ps3 to be any lower. As for Nintendo your right it's a cash cow

I second this. As recent as last week I opted to report my 2nd rrod online rather than phoning someone in India and I was given the option to get a box shipped to me. Which I did receive, same way and same packing materials as I got for my first rrod, a 1 year and half ago.

Slightly off-topic banter to keep some sony fanboys at bay (ZOMG ANOTHER RROD); This is my 2nd rrod but in a 3+ year period which isn't really getting me worked up considering I butcher my 360s with 30+ hours of gaming every week. My gamerscore can attest to this.