Original Analysis:
FY End Mar Jun 07
X360 console average revenue = $300(*)
X360 console cost = $255(*)
Gross Margin = $45(*)
FY End Mar Jun 08
X360 console average revenue = $300(*)
X360 console cost = $225(*)
Gross Margin = $75(*)
Are these numbers too high or about right? I don’t know the answer to that. You may have a different opinion.
However, do keep in mind, that if you have a different opinion in cost or gross margin, understand that if you do “change” those numbers, you also have to change all the other gross margin figures for: Games, Xbox Live, PC games, Zune+ and Windows Mobile.
I will be open to different margin figures. Again, there is a multitude of possibilities. However there are fewer possibilities for the numbers to make sense for every business segment.
Therefore, I did an alternative analysis that still somehow manages to fit in with the MSFT reported figures.
