It may mean that too, but I doubt these costs are fixed and associated with the launch in more countries, since we did not see that happening when they launched it in the 1st grade countrys. IMO they are resulted from the drop in price plus the bundles of XO, so the more they sell these bundles the more money they lose in the short time.

YES we did. advertising alone during launch is a massive cost hit as are launch events, these are all front loaded costs during launchs.

Didn't the Playstation division lose about $70 million in its first quarter after launch? So the PS division lost about $15 million less than the Xbox division of last quarter?

Nope, Xbox made a profit, PS a loss.

Exactly.  I was reading the comments and seeing this one particular poster go in.  I saw the figures and said... um... nevermind.  

Ok, I just cheked the last results and they all had a drop in gross margin be it launch quarter or not. Hard to be sure without the disclosure of more information.

1.5 million is a lot especially with all those bundles that are gonig to ship now,   AC bundle/Sunset overdrive/Call of Duty and do I miss some?

My take on the numbers down below:


http://www.neogaf.com/forum/showpost.php?p=135650548&postcount=284

That's the change , not the absolute numbers. So it's highly likely that they are still profitable, but with a downward trend which makes sense given 360 profit would be far higher than XB1 profit currently (higher margin on hw sales, higher sw sales, more live subscriptions). As 360 sales continue to wind down, if XB1 sales don't pick up the slack then profit in that division will continue to decline.

I commented on GAF too... your estimates are close to mine the only difference are the 60% drop for 360... seems a bit high in my personal opinion... 400k from these 2.4m... I don't know.