bumidan on 30 July 2008
@ goddog, thanks.
Yes, once you get a bigger install base, then generally the increase in total gross margin should be more than enough to offset the increase in the expenses.
So currently if X360 is at 20.3 milllion and Software is at 49.5 million
then
if X360 is at 40.6 million then SW should be 100 million
So for example, if Software has a $12 gross margin (in my example), then:
Currently
@ 49.5 million = $594 million gross margin
but if doubled:
@ 100 million = $1200 million gross margin
That additional $600 million should be more than enough to offset many costs even buying exclusive games, etc.
Because "theoretically", marketing, headcount, R&D should NOT double as well.
