XBox Price Cuts – The financial effect on the division – A FINANCIAL ANALYSIS

[bumidan]

@ ail

I appreciate your comments and understand your points. I do want to respond to see if we can get a better consensus.

1. I have 2 different analysis. Please refer which one you are talking about.

2. As I have mentioned before, I do not mind your comments and they are very much appreciated.

However, as per the post, I would like you to point out, not just 1 set of figures, but also supply your own figures for the other line items.

For the projected FY Jun 09 - I have no problems making the Revenue per Software Unit Lower and Gross Margin per unit lower.
However, for the previous FY, I can't suddenly make it lower because:
a. Have to change revenues/margins for XBox Consoles - make it higher
b. Or have to change revenues/margins for PC games - make it higher
c. Or have to change revenues/margins for Live
d. Or have to change revenues/margins for Accessories

Note that Revenue for Zune+ and Mobile - CANNOT BE CHANGED - in the previous FY.

So I need to know, what other numbers are you suggesting that needs to be changed for FY Jun 08 and FY Jun 09?

It is much easier to change the FY Jun 09 assumptions, because everything is up in the air.

But for FY Jun 08 - You can only change so much, as other numbers are "TRUE".