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Segment Revenue & Operating Income (Loss) (in millions)
Year Ended June 30 2010 2009 2008

Operations


Revenue
Windows & Windows Live Division $ 18,491 $ 14,974 $ 17,211
Server and Tools 14,866 14,191 13,195
Online Services Division 2,199 2,121 2,198
Microsoft Business Division 18,642 18,910 18,899
Entertainment and Devices Division 8,058 8,035 8,495
Unallocated and other 228 206 422
Consolidated $ 62,484 $ 58,437 $ 60,420

 

 

Operating Income / (Loss)

Windows & Windows Live Division $ 12,977 $ 9,982 $ 12,422
Server and Tools 5,491 4,803 4,149
Online Services Division (2,355) (1,652) (578)
Microsoft Business Division 11,776 11,664 11,859
Entertainment and Devices Division 679 108 445
Corporate-Level Activity (4,470) (4,542) (6,026)
Consolidated $ 24,098 $ 20,363 $ 22,271

This is how to read the chart:  The Revenue (the top figures) are before expenses, and the Operating Income (the bottom figures) are profits after expenses.  The "Entertainment and Devices Division" is the Xbox division but also includes Zune and Windows Phone along with some others.

In 2008 MS spent $8,495 million on it's Entertainment division and made $445 million from it.

In 2009 MS spent $8,035 million on it's Entertainment division and made only $108 million from it.

In 2010 MS spent $8,058 million on it's Entertainment division and made $679 million from it.

The bang for your buck with the entertainment division is one of the reasons Goldman Sachs said what they did.  They just seem to be allocating to much money to the division for a fraction in return.