Forums - Microsoft Discussion - Yahoo: "Microsoft can no longer afford to keep investing in the Xbox"

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http://finance.yahoo.com/news/steve-ballmer-s-nightmare-is-coming-true-181558610.html

9. The Xbox was never going to make up the slack, and Microsoft can no longer afford to keep investing in it.
In a year of relative gloom, Microsoft's Xbox has become a big bright spot for the company. Kinect is great technology, people are still buying the console, and it's been a great entry point for Microsoft to take over the living room. But, for a company like Microsoft, Xbox isn't enough. Microsoft had $21 billion in operating income last year. The Entertainment and Devices division, which is home to the Xbox had $364 million in operating income. So, as nice as Xbox is, it's not going to be enough to boost Microsoft if the rest of the business collapses.

 



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Yahoo would be long gone before Microsoft lose any money.

Galaki said:
Yahoo would be long gone before Microsoft lose any money.


MS lost already billions with xbox. The small profit MS is making with the xbox now is nothing compared with the loss before.



What kind of a failed article is this?

A: $67 billion in cash reserves say hi.

B: Despite massive R&D expenses during the last 3 Q's the division is still profiting.

C: The rest of the business collapsing? lol.

Kinda suprised anyone bothered to post this failure of an "article".

If this trend continuous next gen I can't imagine they'll be around for the 9th gen... But I'm sure we'll see them in the gaming business for quite a while.

I'm on Twitter @DanneSandin!

Furthermore, I think VGChartz should add a "Like"-button.

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D: The EED posted $1.62 billion in revenue last Q3 alone.

That will be all.

They're arguing that because the Xbox business is small, it's not worth it? It fits well with everything else MS does.

Proclus said:
What kind of a failed article is this?

A: $67 billion in cash reserves say hi.

B: Despite massive R&D expenses during the last 3 Q's the division is still profiting.

C: The rest of the business collapsing? lol.

Kinda suprised anyone bothered to post this failure of an "article".

This article is getting alot of responses on neogaf :P, anyways this article is far from a doomed one, they are just saying the xbox doesn't generate enough profit to be worth the investment.



007BondAgent said:
Proclus said:
What kind of a failed article is this?

A: $67 billion in cash reserves say hi.

B: Despite massive R&D expenses during the last 3 Q's the division is still profiting.

C: The rest of the business collapsing? lol.

Kinda suprised anyone bothered to post this failure of an "article".

This article is getting alot of responses on neogaf :P, anyways this article is far from a doomed one, they are just saying the xbox doesn't generate enough profit to be worth the investment.



And they're so obviously wrong, despite some whatwasit $250M in R&D expenses last Q alone they still managed to offset that and make a profit, and there's not any real profit makers besides the Xbox in that devision that could account for that



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Proclus said:
007BondAgent said:
Proclus said:
What kind of a failed article is this?

A: $67 billion in cash reserves say hi.

B: Despite massive R&D expenses during the last 3 Q's the division is still profiting.

C: The rest of the business collapsing? lol.

Kinda suprised anyone bothered to post this failure of an "article".

This article is getting alot of responses on neogaf :P, anyways this article is far from a doomed one, they are just saying the xbox doesn't generate enough profit to be worth the investment.



And they're so obviously wrong, despite some whatwasit $250M in R&D expenses last Q alone they still managed to offset that and make a profit, and there's not any real profit makers besides the Xbox in that devision that could account for that

Well i think the article is a load of BS also, but they do bring up a valid point, anyways i guess this is why microsoft is pushing kinect so hard, and trying to change the xbox into a media hub.