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Forums - Sales Discussion - Can Microsoft afford another price cut??? erm NO

Soriku said:
JaggedSac said:
Looks like the SDF cares more about this price cut than anybody else.

 

Ironic considering they're hoping for more PS3 price cuts when Sony is losing more money than MS...

 

i dont want the ps3 to get a price cut because i dont wan tto have to talk to a bunch of cheap skates on psn



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MICROSOFT CORPORATION

 

Segment Revenue and Operating Income (Loss) 
(In millions)

 

  Three Months Ended
June 30,
Year Ended
June 30,
Revenue 2008 2007 2008 2007
Client $4,367 $3,809 $16,865 $14,976
Server and Tools 3,737 3,084 13,170 11,171
Online Services Business 838 677 3,214 2,441
Microsoft Business Division 5,263 4,634 18,932 16,402
Entertainment and Devices Division 1,575 1,153 8,140 6,069
Unallocated and other 57 14 99 63
Consolidated $15,837 $13,371 $60,420 $51,122

 

 

Operating Income (Loss)
Client $3,228 $2,778 $13,052 $11,467
Server and Tools 1,373 987 4,593 3,643
Online Services Business (488) (210) (1,233) (617)
Microsoft Business Division 3,341 2,983 12,358 10,777
Entertainment and Devices Division (188) (1,223) 426 (1,969)
Corporate-level activity (1,582) (1,326) (6,704) (4,777)
Consolidated $5,684 $3,989 $22,492 $18,524

I believe this is as specific as M$ gets, and this in no way indicates how the games division is doing. 



psrock said:
they have no choice.

 

that.



obieslut said:

Last quater the games division was in the red, now microsoft are talking about price cuts and everything else. but what i am thinking is can they afford it. to me it just seems like they are in the games business just to try and hurt sony but they will have to make a profit at some point because if no then why are they in this business. they are billions of dollas in the red with the xbox brand and with the way they are going they are only going to get even deepr into the red.

I think if they kep up lik this then they are not going to last in the games market too long

 

 

 

Its very likely that the price cut corresponds the new Jasper chip, which will be smaller and smaller chips correspond directly to lower manufacturing costs.  Microsoft's other big price-cut also corresponded roughly to the introduction of the falcon chip (which was then smaller and less expensive than the zephyr chip).  If this is the case, then all Microsoft is doing is keeping its profit margin roughly steady.

 



Oh, so since Microsoft doesn't have a separate division just for games, we don't count it?

That's fair.



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DMeisterJ said:
Oh, so since Microsoft doesn't have a separate division just for games, we don't count it?

That's fair.

 

Well considering all of the other things in the division there is no way of telling what is generating what revenue and what is generating operating loss.  Not sure how fairness comes into play.  Fair to who?  Is this a competition?



DMeisterJ said:
Oh, so since Microsoft doesn't have a separate division just for games, we don't count it?

That's fair.

So because they don't differentiate between, say, the Xbox and the Zune in their financial report, we assume whatever we want?

That's fair.

 



badgenome said:
DMeisterJ said:
Oh, so since Microsoft doesn't have a separate division just for games, we don't count it?

That's fair.

So because they don't differentiate between, say, the Xbox and the Zune in their financial report, we assume whatever we want?

That's fair.

 

 

well, why hide it? unless....



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11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
psrock said:
badgenome said:
DMeisterJ said:
Oh, so since Microsoft doesn't have a separate division just for games, we don't count it?

That's fair.

So because they don't differentiate between, say, the Xbox and the Zune in their financial report, we assume whatever we want?

That's fair.

 

 

well, why hide it? unless....

Unless it is irrelevant to anyone outside of the company.  I do not remember reading any articles about people miffed that M$ doesn't provide a more detailed breakdown of their financials.  I guess they did it so forum analysts can infer things.

 



psrock said:
badgenome said:
DMeisterJ said:
Oh, so since Microsoft doesn't have a separate division just for games, we don't count it?

That's fair.

So because they don't differentiate between, say, the Xbox and the Zune in their financial report, we assume whatever we want?

That's fair.

 

 

well, why hide it? unless....

You're right! It's because they want to win the internetz!