aderoche said:
That revenue figure was for financial year 2008 (full year) wheras the cost of revenue was for the 9months so far this year. It probably still on the low side, but includes the cost of all revenue. I was just grabbing more info and looking to see if I could find something that contradicted my original estimates. I can't find a 10Q report that breaks down cost of revenue and marketing expenses are practically nerver mentioned. Of the $6.5 Billion in revenue we have something like 3.5+ billion cost of profit 1 Billion sales and marketing (how much of that is windows retail sales and marketing - those Sienfeld edds where not cheap) 1.3 billion R&D 300 million profit 400? Administrative expenses We can tell that a large amount of the R&D belongs Mobile but the breakdown of the other expenses is impossible. Given near $5 Billion in revenue, you would have to assign all of the cost of revenue, all of the marketing and the remaining 500 million in R&D purly at the XBOXs feet in order for it to be unprofiable. In order for the gaming to generate $1 Billion in profit you would need to move at least $500 million cost of revenue to non gaming revenue and assign no more then 500million sales and marketing and $300million R&D. This would allow for $200 Million administrative overhead. It's impossible to say if this is the case, but I can say that if it's less then $1 Billion then it's due to very large R&D and Marketing expenses which are discretionary and not due to manufacturing or waranty expenses. |
In any case it makes an entire monkey of the profit/loss lists which have Microsoft losing in the order of 6Billion and having it all attributed to the Xbox and Xbox 360. Because if thats true then the Xbox 1/Xbox 360 would have had to have lost over $200 each per console and thats not taking into account positive revenue sources.
Tease.
