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thx1139 said:
Insidb said:
It looks like they emphasized the increased market share of the X1 to assuage investors, so they can expect a return on the back end (XBL, DLC, etc.). While the revenue falloff is significant, it is definitely tolerable for a company as successful as MS. There is a lot of rhetoric about investor tolerance for the X1 division losses, but I'd imagine that MS is a Delaware C corp., where investors effectively have no rights (This is how big business is always done.). The only tolerance that matters is that of executives and whether or not they want to ride the storm out. Since they can, it is a choice. Sony had a similar predicament with their mobile devices segment, but they had to cut the division to prevent the damage it was doing to the overall bottom line. From a financial perspective, the X1 may be a loser, but the brand is too valuable to offhandedly discontinue. If anything, this press release shows they are committed to defending and extending its lifecycle. If I put that much money into development, I'd sure as hell be doing the same.

What? You do realize that the 2 divisions that hold the X1 and X1 software had gross margin (profit) of close to $1Billion.

I'm just going off their press release; that's all:

"XBox platform revenue DECREASED 20%."

"XBox platform gross margin DECLINE driven by transition to to new generation of consoles."