@Lord N
No just no.
Obviously the 360 / PC had costs as well. The non-gaming related costs are relatively higher. If you want me to venture an educated guess then I would say $4bn was from 360/PC costs and $2.2bn is from other products and other activity. This is based on the fact that the costs are roughly split up 48% cost of revenue, 21% R&D, 31% corporate level activity. Hence, since 360 / PC made around $5bn, it looks much more profitable than other parts.
I wouldnt dream of asking you to believe me but I do financial analysis for a living (for what its worth anyway).
The bottom line is over the last 9 months:
- EDD made $6.5bn in revenue. If you ask me and take a look at the market, its really not hard to believe that $5bn was made by gaming related platforms. Remember that any less means more revenue by Zune, Windows Mobile, Surface, application software for Mac and PC which all are clearly going down significantly. Just read current business news.
- EDD had $6.2bn in costs. We know that 360 costs are going down, its in their report. We know it is roughly split up 48% cost of revenue, 21% R&D, 31% corporate level activity. Even if 360 and PC took ALL of cost of revenue and R&D, this still doesnt reach $5bn. We also know that EDD is responsible for the costs of developing Mac/PC apps and costs for sales and marketing of Office and Windows. So there is strong evidence that gaming and 360 is profitable.
