I definitely want a Surface Pro but just can't at that price.
Soleron said:
The problem with that is that you could justify MS doing ANYTHING, no matter how little sense it makes, because the background revenue from just being Microsoft will cause quarterly profits anyway. MS could hand out $900m of cheeseburgers on street corners and it'd be OK. The important message from this writedown is that certain people and departments within Microsoft have no idea what they're doing or what the market wants. If these people are promoted within the Windows division, eventually the background revenue will be under threat. There will come a time when a Windows device isn't necessary in every house or office. |
I think this logic is a big problem on VGC.
Microsoft does not generate its revenues from being Microsoft. MS is that successful because 9 out of 10 times they make the right choice.
As Kowe said they make bets / investments / experiments or whatever you want to call it all the time. Xbox was such a experiment and it paid off.
Azure was an investment 3 years ago and it became a huge success. Office 365 is doing really well, too.
The Surface did not pay off (so far).
Imagine not having GamePass on your console...
| kowenicki said:
The RT was simply too early. It made a noise in the market, which was probably part of its aim. Next shot will be better and clearly windows tablets and hybrids are popping up all over the place. If they mke the next pro a bit cheaper and more efficient it will do well enough. ...and yes a $900m dollar write down isnt the same as a loss but you will be banging your head against a wall on that one. |
neh.. it was too late.. and not needed.. they should have made a WP7/8 Tablet as the cheaper option and a year earlier..
Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!)
| kowenicki said: ... Net profited over lifetime thus far? Thats debatable and in any event largely irrelevant as xbox is now a very profitable and viable business. Losses are losses and are one time event and in the past. Losses dont accumulate in any business when the parent is a massively profitable organisation. Which is one of the reasons why that oft shown profit history chart is a load of old nonsense for people (gamers/fanboys) who know nothing about business.
|
EDD is losing money right now. This isn't a historical thing.
DirtyP2002 said:
Microsoft does not generate its revenues from being Microsoft. MS is that successful because 9 out of 10 times they make the right choice. Azure was an investment 3 years ago and it became a huge success. Office 365 is doing really well, too. |
Are you living on a different planet? Online Services is still making big losses; EDD is making a loss.
None of their bets/experiments using Windows/Office have ever paid off, ever. You may call them a success by other metrics (supporting Windows pervasiveness) but not financial.
Their choices are only right for a product that has ~90% marketshare. Any other market they fail hard time after time.
Like for example their response to this is an expensive redesign of RT tablets. I expect a $900m writedown on that gen as well in a few months. The best thing to do would be to scrap it and focus on bringing full Windows down to a competitive price, size and weight.
Wow this might be the biggest flop of all time. People really need to start questioning Microsoft investments as clearly they don't have a damn clue what they are doing lately.
I think surface a meh pad... at least the one I tried to use.
Soleron said:
Are you living on a different planet? Online Services is still making big losses; EDD is making a loss. None of their bets/experiments using Windows/Office have ever paid off, ever. You may call them a success by other metrics (supporting Windows pervasiveness) but not financial. Their choices are only right for a product that has ~90% marketshare. Any other market they fail hard time after time. Like for example their response to this is an expensive redesign of RT tablets. I expect a $900m writedown on that gen as well in a few months. The best thing to do would be to scrap it and focus on bringing full Windows down to a competitive price, size and weight. |
I won't claim to be any more expert than you, but have a different opinion. Even though M$ wrote down $900 million on the surface RT, it wasn't a complete failure that you seem to think. M$ is making a long term investment in Windows RT(the OS for Surface RT), as they are using that same operating system on the XBone and they are converging it with the Windows phone OS. The Surface RT write down is being done mostly to push out the gen 1 devices from the sales channel and make way for the revised products to hit market in the next few months. M$ is hoping to slow or stop their slide into obselesence by jumping full into the next generation of operating systems - Windows 8 and Windows RT/Windows Phone 8. If you haven't tried windows 8.1, it is a nice tune up to Win8 and fixes most(not all) of the nagging problems with such a drastic change from the previous version of windows. You are probably right that M$ will lose another load of $$$ this year on Surface products, but that amount will be reduced. Also, M$ is alos trying to build market share through not only their Surface products, but the dozens of other manufacturers that have and are releasing Windows RT products. So, they might lose a bundle on surface itself, but because they are building a new tablet presense through their products and the other vendors products, they win in the long run.
"Taking the £590m write-down into account, it would suggest that Microsoft has a store of six million unsold Surface tablets."
http://www.ibtimes.co.uk/articles/492120/20130718/microsoft-takes-900-million-charge-surface-tablets.htm
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