Will Microsoft release a new console for Next Gen? Interesting Read,,,

[Squilliam]

Lord N said:

Squilliam said:

Since you ignored what I stated I have no reason to spend any effort on this because the chances of it changing your opinion are 0% and the chances of me wasting my time in trying are 100%.

Unless you can prove that some other cost, whether its from the R+D account or somewhere else exceeds the Xbox 360 revenue then you cannot prove that the Xbox 360 is unprofitable. What you just posted is fluff and speculation and you're avoiding the real issues. 5.6B Revenue Xbox 360, 4.3B Cost of revenue which includes things like keyboards, mice, zunes and Xbox 360s and 1.8B R+D. So you're going to prove to me that the majority of the R+D is Xbox 360 related in a division which also houses Natal, Surface, Windows mobile and Zune? Are you going to prove to me that they are spending billions every year in advertising?

 

MSFT spends a lot more every year on advertising than either Sony or Nintendo, and they also spend more money securing third-party support. They also make less money on their first-party titles.

Anyway, trying to assign respective profits and losses to each product and service within MSFT's E&D division is flawed from the start, and the mere fact that they have it in the E&D division is awfully suspicious when it comes to finances.

So they spend somewhere in the realm of a billion dollars to advertise?

Like I said, 5.6B revenue, 4.3B Cost of revenue incl Xbox 360, with the Zune being a minor component and a significant chunk of R+D of which most goes to areas outside of the Xbox 360 such as Windows Mobile, Natal, Surface etc.

Hopefully you'd also realise that the significant way they money hat any prospective third party publisher is in the royalty fees paid and that would show up in reduced revenue and not as an outgoing expenditure.

Trying to assign a dollar value on their operations is flawed? They give percentages for each component so its not hard to work out revenue etc.

But its obvious that the idea that they are making money on the Xbox 360 just doesn't fly with you on a personal level.