thx1139 on 16 May 2009
| scottie said: Very well reasoned, but I'm not convinced. Mostly due to the ambiguous 'cost of revenue' Is the 'cost of revenue' all of the costs that the 360 is incurring? |
"cost of revenue" is really what the direct costs to produce the items that are purchased.
I run a consulting business and we have a similiar term "cost of sales" this is the direct cost of my consultants. Salaries and benefits. This does not include as weird as it sounds sales and marketing expenses or general and administrative expenses.
Its libraries that sell systems not a single game.
