Question:
Which set of assumptions are more reasonable? The original analysis had gross margins increasing the last fiscal year. While the gross margins in the alternative analysis is more consistent with the non-Xbox platform business segments.
The alternative analysis basically falls in line with the hardware assumptions by most of the vgchartz community. However, I find that if those assumptions are more “correct”, the other parts of the EDD business are so much more “profitable” on a gross margin basis – which may not make too much sense.
Most likely, it is probably somewhere in the middle – but it would take a lot of time to calculate and derive the figures.
Which Assumption to Use?
I will use both to show the impact of the price cuts.
