drkohler said:
EDD Division is divided into: 1. Interactive Entertainment Business (XBox, Windows Games) 2. Communications Business (Mobile software) 3. Media Business (all Zune related stuff) 4. Connected TV Business (MS TV, eHome) 5. Specialised Devices and Application Business (PC Hardware. Mac Software, Windows embedded software) As has been mentioned, 5. is certainly printing large amounts of money, 2.-4. who knows, and you are essentially interested in what 1. is doing on its own.. As a rough guess, the software part in 1. is printing large amount of money while the hardware part in 1. is burning money like hell. |
I agree completely. $199.99 is almost without question a loss, on a (console+controller+etc) basis. With the inclusion of a 60GB HDD and a couple cables, even $299.99 is probably still a loss, or close to it.
Hardware profits are probably only really a positive factor for Nintendo this generation. It doesn't matter to Microsoft that they lose some money on consoles, or even if they make it up on software. What matters to them most is their presense in the livingroom, and if they don't make a dime on it, they've still cemented Windows, or a product of theirs, as the primary media system in your household.
"Monopoly good. Destroy all contenders." == effective MS motto. Sony and Nintendo are both enemies of the MS household, even if the execs play up the "we're not competing with so-and-so" BS now and then. MS will not bow out of the console race... ever. You can trust in that.