Ail said:
Margins on the software are nowhere near where you put it because most of those 90 millions software sales will be third party software, Microsoft only take a licencing fee on those.......
Your numbers would imply third party publishers and developers get close to no cash on games sold on the 360. That is your big mistake, the software sold for 360 is in its huge majority not software developed by Microsoft so you can't compare it to Windows........ I can try to explain it in a simpler way : Take a game sold 60$ 3 main actors get their share of those 60$ : - retailer - Publisher ( who then shares with the developer). - Microsoft through a licencing fee. the biggest share is the one the publisher gets. Common accepted numbers for the licencing fee are in the 10-15$ range.......... Microsoft just doesn't make anywhere near 30$ per copy of GTA4 or Madden sold....... Any analysis you did based on your software will as a result be heavilly flawed.. Now divide by two the software revenue and you pretty much have to redo all the analysis....... |
UHM, that is nice, but completely irrelevant to MICROSOFTS SOFTWARE sales. MSFT is not selling GTA or MAdden. Some other r company is. These are MSFT financial we are talking about, not rockstars. If MSFT gets a licensing fee from Rockstar, that would be listed under 'licensing revenue' or some other category not a 'software sale'. When they sell Halo, Age of Empires, Flight Simulator (all very popular software packages!) they are making ~ 75% gross margin on that sale....
Trying to convince me the Wii is a real adult game machine 'if you play it right' is like trying to convince me Tofu tastes great 'if you just cook it right'