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

[goddog]

Bitmap Frogs said:

goddog said:

Bitmap Frogs said:

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.

 

why do we keep thinking it will come that early, last gen termination was forced, and short generations should become less common for the health of the industry 2011 is to soon 2012 earliest, better to wait till 2013-14. it would provided a clear upgrade path with truly enhanced tech. it would also provided crucial time for devs to make money back on assests they developed for this gen. I feel, and hope for the sake of the industry the next cycle is not rushed to the front burner like this one was all the player except nintendo rushed projects to get a lead, and it shows....... though that does not mean im not having fun with them

 

"That early"? From 2005 to 2011, that makes it 6 years. Pretty average if you look at the past..

I should have explained that 6 years is too short, and that they need to expand upon the life of a console, the ten year plan by sony that many see as a joke is close to true, to help devs out and really built a base 8 years should be the min, it would justify larger investments on the consumers end and build confidence in return on money developed assets by devs. this would give them the freedom of long development cycles and keep quality up, without fearing one bad game will kill them for the generation in terms of sales. as stated earlier it would also help the consumer feel value, in the coming years, after the xboxs early end the 360 fairly or not will be speculated to have one, and they need to squash that.... I am also of the opinion that last generation should not have ended till 2007 at earliest, would have allowed for better games at launch more technicaly impressive games, better hardware, where everyone would either be making money off of it, or breaking even in the case of the ps3. 

dont get me wrong i  enjoy all the games we have this gen, but both the gamecube and the xbox were no where near tapped out in terms of power, though by the end of 2006 to mid 2007 they might have been there. 

one of the reasons last gen ended in my mind early is how lopsided it was, and software sales were... ths time though hardware is lopsided, software is not, and thats where the real money is, and that could if it stays like this without nintendo gaining a 3rd party monopoly, the gen could benifit each console with money to keep all three in the black