Forums - Microsoft Discussion - Xbox Platform decreases Microsoft's gross margin by $400m for FY2013/14

Taken from their 10K filing;

 

"Computing and Gaming Hardware revenue increased $3.2 billion or 49%, primarily due to higher revenue from the Xbox Platform and Surface. Xbox Platform revenue increased $1.7 billion or 34%, due mainly to sales of Xbox One, which was released in November 2013, offset in part by a decrease in sales of Xbox 360. We sold 11.7 million Xbox consoles during fiscal year 2014 compared with 9.8 million Xbox consoles during fiscal year 2013. Surface revenue increased $1.3 billion or 157%, due mainly to a higher number of devices and accessories sold.

 

Computing and Gaming Hardware gross margin decreased slightly, due to a $3.2 billion or 59% increase in cost of revenue, offset in part by higher revenue. Xbox Platform cost of revenue increased $2.1 billion or 72%, due mainly to higher volumes of consoles sold and higher costs associated with Xbox One. Surface cost of revenue increased $970 million or 51%, due mainly to a higher number of devices and accessories sold, offset in part by a charge for Surface RT inventory adjustments of approximately $900 million in fiscal year 2013."

 

This is on a gross margin basis as well so the operating loss is probably much higher.

 

Taken from here:

http://www.shareholder.com/visitors/activeedgardoc.cfm?f=rtf&companyid=MSFT&id=10123079 (link opens a Word doc).



Around the Network
So,what does that all basically mean?

oldschoolfool said:
So,what does that all basically mean?

Xbox makes no monies.



No troll is too much for me to handle. I rehabilitate trolls, I train people. I am the Troll Whisperer.

oldschoolfool said:
So,what does that all basically mean?

he doesnt know.

First of all I'd like to see the source for the artciles numbers.

Secondly can the OP analyse the various segments that xbox (both hardware AND software) exists in over those 12 months and break down the exact situation.

Also can you value the good will and brand awareness added value that exists from the xbox venture.

Next can you shoe m e the exact profit situation and not just revenue numbers.

Thanks.

 



I'm not really here!

televandalist Animated Gif on Giphy

Link: Shipment History Since 1995

oldschoolfool said:
So,what does that all basically mean?


It means MS spent $2.1 billion to make $1.7 billion in revenue from Xbox, meaning that they lost $400 million last FY13/14 from the Xbox platform (XB1 and X360). Now given that X360 would be profitable during that period, the loss must come from the XB1, so in essense the loss due to XB1 is $400 million plus whatever profit X360 brought in during that period.



Around the Network
So, Sony is doomed, Nintendo is more doomed, and Xbox is even more doomed?

As of now...

Wii U has the best games.

Wii U has the best price.

Wii U has the worst sales.

czecherychestnut said:
oldschoolfool said:
So,what does that all basically mean?


It means MS spent $2.1 billion to make $1.7 billion in revenue from Xbox, meaning that they lost $400 million last FY13/14 from the Xbox platform (XB1 and X360). Now given that X360 would be profitable during that period, the loss must come from the XB1, so in essense the loss due to XB1 is $400 million plus whatever profit X360 brought in during that period.

Exactly, basically unhappy shareholders are still unhappy with Xbox. Although, that hasn't changed since the original Xbox launched. 



Taken from Gaf, you mean.

maverick40 said:
czecherychestnut said:
oldschoolfool said:
So,what does that all basically mean?


It means MS spent $2.1 billion to make $1.7 billion in revenue from Xbox, meaning that they lost $400 million last FY13/14 from the Xbox platform (XB1 and X360). Now given that X360 would be profitable during that period, the loss must come from the XB1, so in essense the loss due to XB1 is $400 million plus whatever profit X360 brought in during that period.

Exactly, basically unhappy shareholders are still unhappy with Xbox. Although, that hasn't changed since the original Xbox launched. 


LMAO.  Really... thats a bit of a leap.  I'm a shareholder.  I'm not unhappy.

You?

If you can find an unhappy MS shareholder, I'll show you a moron.

a 1 year return of up 35% and long time record highs?  lol

compared to... oh.... I dunno.  Im sure we can find some worhty examples.

Isnt it amusing when people talk about things of which they have little knowledge.  Its why i dont get involved in techincal resilution warz... I dont know enough about it and frankly dont give a shit.

A lesson for all of us, Im sure you will agree.



I'm not really here!

televandalist Animated Gif on Giphy

Link: Shipment History Since 1995

Around the Network
kowenicki said:
maverick40 said:
czecherychestnut said:
oldschoolfool said:
So,what does that all basically mean?


It means MS spent $2.1 billion to make $1.7 billion in revenue from Xbox, meaning that they lost $400 million last FY13/14 from the Xbox platform (XB1 and X360). Now given that X360 would be profitable during that period, the loss must come from the XB1, so in essense the loss due to XB1 is $400 million plus whatever profit X360 brought in during that period.

Exactly, basically unhappy shareholders are still unhappy with Xbox. Although, that hasn't changed since the original Xbox launched. 


I'm a shareholder.  I'm not unhappy.

you?

If you can find an unhappy MS shareholder, I'll show you a moron.

a 1 year return of up 35% and long time record highs?  lol

compared to... oh.... I dunno.  Im sure we can find some worhty examples.

 

Makes perfect sense. 

Shareholders are happy with the company as a whole obviously but there are parts of the company to be worried about. 

We had a closed ama with the president of my employer and they had awful things to say about MS as a whole. Internally they are a mess and are bringing down their customers with them. 

You would know all this though because you deal with them on a day to day basis right?