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Forums - Sales Discussion - MS EAD division (incl X350) posts $31mill loss in Q3

DirtyP2002 said:
X360 is profitable. R&D for Zune HD is the reason for this. the only thing that seems logical to me.

not the arcade, they are selling it a small loss but they should recoup on gold subcriptions.

though if they bought an arcade and never sign in on live gold. thats maybe a problem.

 

and HD Mp3 player won't be that expensive R&D.

actually its pretty cheap. even chinese companies have one.

 



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wow! this is weird i thought only sony were allowed to lose money?



Jo21 said:
DirtyP2002 said:
X360 is profitable. R&D for Zune HD is the reason for this. the only thing that seems logical to me.

not the arcade, they are selling it a small loss but they should recoup on gold subcriptions.

though if they bought an arcade and never sign in on live gold. thats maybe a problem.

 

and HD Mp3 player won't be that expensive R&D.

actually its pretty cheap. even chinese companies have one.

 

 

Any proof for those statements? or are you just speculating?




SOLIDSNAKE08 said:
wow! this is weird i thought only sony were allowed to lose money?

 

You realize MS is still extremely profitable and Sony currently not, right?




does XBL fall under E&D or online services division? anyone know?



Proud Sony Rear Admiral

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aderoche said:

 EDD revenue decreased primarily due to decreased sales of application software for Apple's Macintosh computers, partially offset by increased Xbox 360 platform and PC game revenue. The decrease in revenue included an unfavorable impact from foreign currency exchange rates of $38 million or two percentage points. Sales of application software for Apple's Macintosh computers declined 63%, reflecting the launch of Mac Office 2008 in the prior year as well as a decline in sales of Apple computers. Xbox 360 platform and PC game revenue increased 16%, primarily as a result of an increase in Xbox 360 platform sales, partially offset by decreased revenue per Xbox 360 console due to price reductions during the past 12 months. We shipped 1.7 million Xbox 360 consoles during the third quarter of fiscal year 2009, compared with 1.3 million Xbox 360 consoles during the third quarter of fiscal year 2008.

I had not thought of this but the value of the Euro and the British Pound have both fallen in value versus the dollar from last year.  Similar to Sony's problem with the strong Yen this may be cutting into their profits.

 



Proud member of the Sonic Support Squad

Jo21 said:
DirtyP2002 said:
X360 is profitable. R&D for Zune HD is the reason for this. the only thing that seems logical to me.

not the arcade, they are selling it a small loss but they should recoup on gold subcriptions.

though if they bought an arcade and never sign in on live gold. thats maybe a problem.

 

and HD Mp3 player won't be that expensive R&D.

actually its pretty cheap. even chinese companies have one.

 

 

 even if the arcade is sold with a loss (we don't know), the accessories, games, Xbox Live and the other Xbox360 versions (pro and elite) are probably covering the maybe-losses of the arcade.

The R&D for the Zune HD is around 70 million according to the article someone posted earlier. okay the R&D costes increased by 70 million. I bet the zune is the reason for this. hell, this thing will be out next month.



Imagine not having GamePass on your console...

DirtyP2002 said:
Jo21 said:
DirtyP2002 said:
X360 is profitable. R&D for Zune HD is the reason for this. the only thing that seems logical to me.

not the arcade, they are selling it a small loss but they should recoup on gold subcriptions.

though if they bought an arcade and never sign in on live gold. thats maybe a problem.

 

and HD Mp3 player won't be that expensive R&D.

actually its pretty cheap. even chinese companies have one.

 

 

 even if the arcade is sold with a loss (we don't know), the accessories, games, Xbox Live and the other Xbox360 versions (pro and elite) are probably covering the maybe-losses of the arcade.

The R&D for the Zune HD is around 70 million according to the article someone posted earlier. okay the R&D costes increased by 70 million. I bet the zune is the reason for this. hell, this thing will be out next month.

Microsoft stated that they broke even with accessories on the Arcade sometime last year, so you can work your way from there if you wish.

 



Tease.

Interesting things from the 10Q.

Mac Office sales dropped 63% compared to last year.
Currenct exchange rates cost division $38 million.
R&D costs jumped $66 million primarily because of investment into Windows Mobile (MS SmartPhone)
Cost of Revenue (Cost to make things) increased by $52 million. If all of that was to produce 400,000 (difference between last year and this year 360 sales) that comes out to $130 per console.



Its libraries that sell systems not a single game.