I think we can assume he is talking about the hardware business.  He isn't an idiot, he know ms makes billions upon billions each quarter.

xbox is very proftable.

live is a massive money maker, nobody else has that... as shown by the recent revelation on ps+ subscriber numbers. 

Unfortunately that one article or should i say that one source was proved to be ridiculous by the recent accounts.....  did you miss those then?

Its bullshit....  pure and simple.

Thanks.

kowenicki said:

 Lol.  All the same source ffs, all around the same time.  This is actually quite embarrassing now...

Look at the accounts, open your mind and learn something.

An opinion in an article is just that.  The accounts are fact.

If you knew anything about accounts and business you would know this is horse shit and wouldn't be posting it.  Therefore I'm guessing you know nothign about it.

Business Insider said:

Microsoft is generating $2 billion per year in revenue from Android patent royalties, says Nomura analyst Rick Sherlund in a new note on the company.

He estimates that the Android revenue has a 95% margin, so it's pretty much all profit. 

This money, says Sherlund, helps Microsoft hide the fact that its mobile and Xbox groups are burning serious cash. 

For the past few years, Microsoft reported the revenue and operating losses of Entertainment and Devices, which was the group that housed Xbox, Windows Phone, and those Android royalty payments. 

That group always seemed to be profitable, but Sherlund says it's largely because of the Android money.

Sherlund says that if you back out the Android profits, Microsoft is probably losing $2.5 billion on Skype, Xbox, and Windows Phone. Of that, $2 billion in losses are attributable to the Xbox platform. 

Sherlund believes Microsoft needs to spin out Xbox. He sees it as an orphan group at Microsoft that doesn't really fit with anything it's doing. 

Investors are blind to Xbox's struggles, says Sherlund, because they are "concealed by the hugely profitable Android royalties."

No he isnt saying that.  He is talking purely about devices.  Xbox is the only hardware MS is making any decent return on right now.

I do wish people would think before posting sometimes.