kowenicki said:
ImJustBayuum said:
So overall the Entertainment division profit margin is 679mil/8bill = ~8.49%. This is quiet low if you compare it to Windows division's profit margin of 12.977bil/18.491bill = ~66-70%. Having said that, the windows division has always had a high profit margin due their position in the market. And secondly microsoft needs to diversify its business via investment. They are loaded, they can afford to take risky investments. The EED have absolute potential for growth especially the gaming division / living room division, so 8.49% is not bad if you look at it holistically in the long term for MS.
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quite low compared to windows yes... quite high compared to most companies on the planet.
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@bolded = very general pointless comparison.
My point was that MS should continue to invest in these smaller division for the long term, regardless of its profitability relative to its most profitable division.
