Blogger Analyst: Xbox is 3% of Microsoft's Value

[DirtyP2002]

supercat said:

Killergran said:

supercat said:
It's basically saying that the 360 brings in a horrible rate of return for the amount invested in it, even for the most recent quarters.

Wait! Did we read the same article?

 

Where did it say that?

I'm forming my own conclusions from simple math: 

 

Ms's games division got 375 million in profit most recently, which is 4.5% of total profit, but the firm lists this as 3% of it's value, implying

that the profit coming from this division generates less return on investment than the other ones.  Basically it takes more resources to generate a profit from the games division than the other divisions if of course, we can consider the trefis model as valid.

- Zune HD and
- Windows Mobile 7 R&D

= probably 500 million USD profit for the 360. The data is just too hard to get through, but we do know the Zune is not a big moneymaker, probably some losses. And Windows Mobile 7 had some R&D costs, since it will be annopunced in 2 weeks. Overall the Xbox 360 might break even in the next 6 months. Imagine the losses of the Zune for the past 5 years must have been huge.

But anyway, the other divisions of MS are soooooo