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MICROSOFT FY15 Q2: Analyst estimates beaten again. Revenue $26.5bn, Op income $7.8bn. Xbox 6.6m shipped.

Forums - Microsoft Discussion - MICROSOFT FY15 Q2: Analyst estimates beaten again. Revenue $26.5bn, Op income $7.8bn. Xbox 6.6m shipped.

Quarterly combined Xbox shipments?

2.5m to 3.0m 58 22.92%
 
3.1m to 3.5m 12 4.74%
 
3.6m to 4.0m 13 5.14%
 
4.1m to 4.5m 9 3.56%
 
4.6m to 5.0m 17 6.72%
 
5.1m to 5.5m 14 5.53%
 
5.6m to 6.0m 17 6.72%
 
6.1m to 6.5m 16 6.32%
 
6.6m to 7.0m 58 22.92%
 
7.1m to 7.5m 37 14.62%
 
Total:251
DerNebel said:
thx1139 said:
Insidb said:
It looks like they emphasized the increased market share of the X1 to assuage investors, so they can expect a return on the back end (XBL, DLC, etc.). While the revenue falloff is significant, it is definitely tolerable for a company as successful as MS. There is a lot of rhetoric about investor tolerance for the X1 division losses, but I'd imagine that MS is a Delaware C corp., where investors effectively have no rights (This is how big business is always done.). The only tolerance that matters is that of executives and whether or not they want to ride the storm out. Since they can, it is a choice. Sony had a similar predicament with their mobile devices segment, but they had to cut the division to prevent the damage it was doing to the overall bottom line. From a financial perspective, the X1 may be a loser, but the brand is too valuable to offhandedly discontinue. If anything, this press release shows they are committed to defending and extending its lifecycle. If I put that much money into development, I'd sure as hell be doing the same.


What? You do realize that the 2 divisions that hold the X1 and X1 software had gross margin (profit) of close to $1Billion.

Gross margin is not profit.

Its the closest we have declared at the division level.  Taxes and corporate level expenses are not declared at the division level.



Its libraries that sell systems not a single game.

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thx1139 said:
Insidb said:
It looks like they emphasized the increased market share of the X1 to assuage investors, so they can expect a return on the back end (XBL, DLC, etc.). While the revenue falloff is significant, it is definitely tolerable for a company as successful as MS. There is a lot of rhetoric about investor tolerance for the X1 division losses, but I'd imagine that MS is a Delaware C corp., where investors effectively have no rights (This is how big business is always done.). The only tolerance that matters is that of executives and whether or not they want to ride the storm out. Since they can, it is a choice. Sony had a similar predicament with their mobile devices segment, but they had to cut the division to prevent the damage it was doing to the overall bottom line. From a financial perspective, the X1 may be a loser, but the brand is too valuable to offhandedly discontinue. If anything, this press release shows they are committed to defending and extending its lifecycle. If I put that much money into development, I'd sure as hell be doing the same.


What? You do realize that the 2 divisions that hold the X1 and X1 software had gross margin (profit) of close to $1Billion.

I'm just going off their press release; that's all:

"XBox platform revenue DECREASED 20%."

"XBox platform gross margin DECLINE driven by transition to to new generation of consoles."



Seece said:
riecsou said:
VGC seems to be spot on with the tracking:
Xbox One and 360 at 6 Millions and 83.3 Millions as of October 4th
Xbox One and 360 at 11 Millions and 84.4 Millions as of January 3rd.
So that means Xbox One and 360 sold 5 millions and 1.1 millions during the quarter for a total of 6.2 Xbox Sold. Leaving 400 K on shelves + whatever was on shelves for the previous quarter. Unless the previous numbers on shelves was really high, that is a very good tracking by VGC

Nah. - http://gamrconnect.vgchartz.com/thread.php?id=197304&page=1#

Thanks,

I was doing the math for Xbox One numbers, for 360 numbers I prefer to go with MS released shipments. The tracking on the 360 has gone through a lot on VGC. So for Xbox One numbers, I think they are spot on.



thx1139 said:
DerNebel said:
thx1139 said:
Insidb said:
It looks like they emphasized the increased market share of the X1 to assuage investors, so they can expect a return on the back end (XBL, DLC, etc.). While the revenue falloff is significant, it is definitely tolerable for a company as successful as MS. There is a lot of rhetoric about investor tolerance for the X1 division losses, but I'd imagine that MS is a Delaware C corp., where investors effectively have no rights (This is how big business is always done.). The only tolerance that matters is that of executives and whether or not they want to ride the storm out. Since they can, it is a choice. Sony had a similar predicament with their mobile devices segment, but they had to cut the division to prevent the damage it was doing to the overall bottom line. From a financial perspective, the X1 may be a loser, but the brand is too valuable to offhandedly discontinue. If anything, this press release shows they are committed to defending and extending its lifecycle. If I put that much money into development, I'd sure as hell be doing the same.


What? You do realize that the 2 divisions that hold the X1 and X1 software had gross margin (profit) of close to $1Billion.

Gross margin is not profit.

Its the closest we have declared at the division level.  Taxes and corporate level expenses are not declared at the division level.

Yes, but it's still just a revenue figure. Since that's the primary driver of market cap, it makes perfect sense for them to focus on it.



Insidb said:
thx1139 said:
Insidb said:
It looks like they emphasized the increased market share of the X1 to assuage investors, so they can expect a return on the back end (XBL, DLC, etc.). While the revenue falloff is significant, it is definitely tolerable for a company as successful as MS. There is a lot of rhetoric about investor tolerance for the X1 division losses, but I'd imagine that MS is a Delaware C corp., where investors effectively have no rights (This is how big business is always done.). The only tolerance that matters is that of executives and whether or not they want to ride the storm out. Since they can, it is a choice. Sony had a similar predicament with their mobile devices segment, but they had to cut the division to prevent the damage it was doing to the overall bottom line. From a financial perspective, the X1 may be a loser, but the brand is too valuable to offhandedly discontinue. If anything, this press release shows they are committed to defending and extending its lifecycle. If I put that much money into development, I'd sure as hell be doing the same.


What? You do realize that the 2 divisions that hold the X1 and X1 software had gross margin (profit) of close to $1Billion.

I'm just going off their press release; that's all:

"XBox platform revenue DECREASED 20%."

"XBox platform gross margin DECLINE driven by transition to to new generation of consoles."

Revenue DECLINE and gross margin DECLINE doesnt mean that the business was not profitable nor does it mean it isnt healthy.  X360 sales dropped considerably YOY as people transition to new generation of consoles.  



Its libraries that sell systems not a single game.

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Insidb said:
thx1139 said:
DerNebel said:
thx1139 said:
Insidb said:
It looks like they emphasized the increased market share of the X1 to assuage investors, so they can expect a return on the back end (XBL, DLC, etc.). While the revenue falloff is significant, it is definitely tolerable for a company as successful as MS. There is a lot of rhetoric about investor tolerance for the X1 division losses, but I'd imagine that MS is a Delaware C corp., where investors effectively have no rights (This is how big business is always done.). The only tolerance that matters is that of executives and whether or not they want to ride the storm out. Since they can, it is a choice. Sony had a similar predicament with their mobile devices segment, but they had to cut the division to prevent the damage it was doing to the overall bottom line. From a financial perspective, the X1 may be a loser, but the brand is too valuable to offhandedly discontinue. If anything, this press release shows they are committed to defending and extending its lifecycle. If I put that much money into development, I'd sure as hell be doing the same.


What? You do realize that the 2 divisions that hold the X1 and X1 software had gross margin (profit) of close to $1Billion.

Gross margin is not profit.

Its the closest we have declared at the division level.  Taxes and corporate level expenses are not declared at the division level.

Yes, but it's still just a revenue figure. Since that's the primary driver of market cap, it makes perfect sense for them to focus on it.

Its a revenue minus expense figure.



Its libraries that sell systems not a single game.

thx1139 said:
DerNebel said:
thx1139 said:


What? You do realize that the 2 divisions that hold the X1 and X1 software had gross margin (profit) of close to $1Billion.

Gross margin is not profit.

Its the closest we have declared at the division level.  Taxes and corporate level expenses are not declared at the division level.

Not by MS at least, which majorly annoys me about their financial reports, on the corporate level their gross margin was $8.5 billion higher than their operating income, I'm way more interested in the operating income of the divisions than a rather misleading number like gross margin.



sully1311 said:
Zekkyou said:
Why can't they just release the individual platform shipment numbers? I really don't understand what they're trying to achieve in clouding the numbers (same goes for Sony). It seems so pointless.

If anyone can give me a proper explanation, i'd be interested to hear.


Because the media would compare the numbers to Sony directly, and would paint MS in a negative light.

That's my assumption too... Likewise, as celador said, i expect Sony do it to hide the Vita's poor numbers.

The whole thing strikes me as rather silly though.



Zekkyou said:
sully1311 said:
Zekkyou said:
Why can't they just release the individual platform shipment numbers? I really don't understand what they're trying to achieve in clouding the numbers (same goes for Sony). It seems so pointless.

If anyone can give me a proper explanation, i'd be interested to hear.


Because the media would compare the numbers to Sony directly, and would paint MS in a negative light.

That's my assumption too... Likewise, as celador said, i expect Sony do it to hide the Vita's poor numbers.

The whole thing strikes me as rather silly though.

Indeed. MS are gonna have to update eventually and they're always gonna be behind, just a matter of fact. Though knowing MS, I can see them only talking about US figures and never mentioning WW sales (in any capacity) ever again lol.

Grrrr.



 

DerNebel said:
thx1139 said:
DerNebel said:
thx1139 said:


What? You do realize that the 2 divisions that hold the X1 and X1 software had gross margin (profit) of close to $1Billion.

Gross margin is not profit.

Its the closest we have declared at the division level.  Taxes and corporate level expenses are not declared at the division level.

Not by MS at least, which majorly annoys me about their financial reports, on the corporate level their gross margin was $8.5 billion higher than their operating income, I'm way more interested in the operating income of the divisions than a rather misleading number like gross margin.

Well how do you want them to break it out then? Do you want corporate level expenses to be prorated out to the divisions?



Its libraries that sell systems not a single game.