So the following are the Xbox Platform Revenue for both years:
FY End Jun 2007
Console = 6.6 million x $300(*) = 1,980(*)
Games = 49.5(*) million x $25(*) = 1,238(*)
Accessories = 23.8(*) million x $25(*) = 594(*)
Live = 225(*) million
PC Games + Variance = 48(*) million
Total Xbox Platform Revenue = 4,084(*) = the same figure we have from the previous calculations.
FY End Jun 2008
Console = 8.7 x $300(*) = 2,610(*)
Games = 65.3(*) x $30(*) = 1,958(*)
Accessories = 31.3(*) x $25(*) = 783(*)
Live = 380(*)
PC Games + Variance = 53(*)
Total Xbox Platform Revenue = $5,784(*) = the same figure we have from previous calculations
Questions you may have:
- Games and Accessories revenue per unit are just assumptions
- I increased the Games revenue per unit in 2008 due to Halo
- I kept console revenue constant – which is an average console revenue
- Live revenue is just a guesstimate – but it makes some sense that it increases from the previous year – especially with all the new stuff plus movie downloads
- PC games + variance – is just to make the numbers add up.
If you guys have any data that I can use, please let me know. For example, if someone can show me that PC games bring in $100 million a year for MSFT, let me know so I can use it in my analysis.
So after the Revenue Analysis, we basically can calculate/speculate the Gross Margin or % so we can do some scenario analysis with different numbers.
The numbers that you will see are mostly educated guesstimates and assumptions to make the numbers add up that make any sense.
So please, if you do have any comments, just note that we can’t just change 1 figure or number, without affecting the whole calculations.
Each figure change has to make sense, not only for that line item, but also for all the other line items.
I can let you know what I mean, if someone makes a suggestion of a number change and show you the implications – whether it makes sense or not.
