Non Sequor on 21 December 2007
| eugene said: Well Bod, thats only if you continually look at the glass half empty. If they did not buy out Bioware and Pandemic, they would probably have posted a near billion dollar profit last quarter. The loss was something they anticipated on and it was a very good investment. Good investments typically pay off. As the installed base of current generations rise, they will only benefit more. They are profiting greatly still this generation as will most the other major publishers. |
It doesn't work that way. Money spent acquiring assets (capital expenditures) doesn't show up on the quarterly income statements because the asset is assumed to be worth as much as it cost to acquire. Instead, the cost shows up over time as amortization or depreciation. If the asset later turns out to be worth less than it's book value it can also be written down and that loss will show up in a later income statement.
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