Microsoft Q1 2009 earnings report today (2:30PM PST)

[Bitmap Frogs]

Dolla Dolla said:

Bitmap Frogs said:

Dolla Dolla said:
Counting Xbox losses, they are still some 6 billion dollars of debt. Just the 360, I think it would be some 2 billion.

 

I estimate they'll get to -5 billion before the R+D on the nextBox starts ramping up and throws the division back to the red.

I guess that depends on when they start producing the next hardware, right? Technically, aren't they already prepping for the next box? We won't hear about that for awhile.

 

If the NextXbox is to launch at the end of 2011, R+D costs should start hitting big in 2010. It means whatever is left of 2008, 2009 and a few months of 2010 (roughly 6 quarters) is all that's left before the R+D costs drown the division. Average it at 200M profit per quarter and yeah, make it 5 billion sunk costs before it shoots up again. Unless they do what's rumored sony will do, release a minor update with minimal R+D costs and sell at a profit from launch onwards.