thx1139 said:
Seece said:
S____M____C____C said:
Seece said:
ethomaz said:
Mad55 said:
really? i mean getting second place when another race starts doesnt mean much. |
Well... Sony is just growing in market share before the new generation start... for now this is the best they can do after the previous huge profitable last generation.
Microsoft is just profiting now before the new generation because the they need profit now after the huge loses in previous generation.
Seems fine to me... both company's goal.
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Wrong. Sony didn't have huge profits last generation, Nintendo beat them and Sony has managed to wipe nearly all PS1/PS2 profits away.
Xbox losses are bad, but Microsoft have officially written them off, so no they're not aiming to recover them, they obviously just want a steady stream of profit in this division.
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What source states that Sony didn't make huge profits from the PS2, and states that the Gamecube made more profit? Although you may well be correct, I find this hard to believe, especially when you take software and software royalties into account.
And I don't believe you can 'write off' a loss, althought I'm not qualified to say so.
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Their financials?? The Gamecube era saw Nintendo pass 1B profit twice and come close to it twice (fical years), Sony never passed 1B profit through the PS2 generation, and most years were closer to 500M than 1B. Again talking fiscal years here.
And I believe MS did write it off, as an investment or something, I don't know will have to look it up.
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MS didnt write off anything. A loss in a particular division just offsets profits in another. XYZ company makes 1 million in 1 portion of business and loses 500K in another portion of the business means the XYZ only made 500K and they pay taxes on the 500K.
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MS absolutely did "write off" the warranty extension costs due to RROD. It was a smart move, although they should have been more open and responded more quickly, taking a lot longer than they should have to admit the issue.
Here's some coverage from around the event:
http://www.ecommercetimes.com/story/58422.html
http://hlime.wordpress.com/2007/07/07/xbox-360-3-year-red-ring-of-death-warranty-enhancement/
The write off was basically taking a one time hit for the estimated costs of RROD as while large it was small enough to be covered by their overall revenue and profits and this allowed MS to show profits much earlier for 360 than would otherwise have been the case. Writing off the charge basically means taking your lumps up front and being done with it. If they hadn't the cost of covering RROD would have been spread out longer and would have held back when they could claim profitabilty for the 360.
