More Additional Losses:
Based on MY model and assumption, it was actually quite easy where this came from. These losses actually came Windows Mobile and from the X360 hardware.
Why?
For 3 quarters, Windows Mobile was allocated/projected to have had $100(*) million in losses.
However for Q4, I projected a $10(*) million profit. I should have used a $33(*) million loss. That is a difference of $43(*) million.
Don’t ask me why. Like I mentioned in the beginning of the post, this was done with less care and hasty manner.
Also, for the past 3 quarters, my model allocated a net LOSS of $75(*) per X360 console. However for Q4, I projected a $20(*) PROFIT per console – a huge and significant difference. Maybe I was optimistic and reading too many MSFT fanboys claims, who knows?
But if I assumed a more reasonable $20(*) LOSS per console, instead of a $95(*) swing in hardware profitability, then that represented a change from $26(*) million profit to a LOSS of $26(*) million. That is a difference of $52(*) million.
Again, don’t ask me why. It seemed reasonable at that time.
