Official Microsoft Earnings Results for Q3 2010

[hobbit]

theprof00 said:

Shorty11857 said:

theprof00 said:

So I did some math on xboxlive numbers, and if 20M people subscribe to xboxlive and pay 9$ a month, they should be making 540M in a quarter. Of course lots of people just pay per year, not per month, but even so, subtracting the 165M profit this quarter gives us 380M to take away from my math.
WHat the hell does MS spend all its money on?!?!?

 

I guess a better question is, what the hell is dragging down EDD so much.

$9 a month? I'd say they make more like an average of $50 a year which would be $250 million a quarter

Like I said, even if they only made 165M a quarter, where is the profit from licensing, hardware sales, and game sales?

EDIT: correction, monthly rate is 8, not 9. But yes, I know that most people buy yearly subs.

how they handle the money from months paid in advance

Unearned Revenue

Unearned revenue at March 31, 2010 comprised mainly unearned revenue from volume licensing programs. Unearned revenue from volume licensing programs represents customer billings for multi-year licensing arrangements, paid either upfront or annually at the beginning of each billing coverage period, which are accounted for as subscriptions with revenue recognized ratably over the billing coverage period. Unearned revenue at March 31, 2010 also included payments for: unspecified upgrades/enhancements of Microsoft Internet Explorer on a when-and-if-available basis for Windows XP; post-delivery support and consulting services to be performed in the future; Xbox LIVE subscriptions; Microsoft Dynamics business solutions products; unspecified enhancements for Zune HD; the 2010 Microsoft Office system technology guarantee program; online advertising for which the advertisement has yet to be displayed; Mediaroom; and other offerings for which we have been paid upfront and earn the revenue when we provide the service or software, or otherwise meet the revenue recognition criteria