MS Q1 2011 Earnings Release - Official Thread

[Shorty11857]

Seece said:

whatever said:

Seece said:

whatever said:

All I said is it will be interesting to see the impact of Kinect on profitability.  Since I didn't make any claims, I'm not sure what you are referring to.

What do you mean by development costs? Costs of the HW or conception to release?

The costs of producing the hardware, the cost of testing the hardware, the cost of fixing bugs, etc.  Marketing costs will also have an impact on this quarter, but to say those will be the only costs is not realistic.

Well, it's hard to tell if the HW produced in this Q will be taking into consideration at all. It might and most probably will be moved to the following Q when the HW is actually sold. Also it's not really a secret or surprise they're selling for a profit. Kinect has been in dev for a long time, "fixing bugs, testing hardware" and the division has been profitable, so I'm not sure why testing and bug fixing will be a strain this time around?

Marketing costs like I said earlier, could be spread out over the course of the year, given that $500 mill marketing is a year thing. I can't see them paying for marketing due to start next September tbh. Hey I could be wrong.

Production costs will be moved to the following Q because even if they've made 2 million Kinects they can't show them (as a cost) in this Q because they haven't been sold or (most likely) written down

Advertising will be the same, if they pay for an advertising campaign for November it won't be included in this Qs figures (as a cost)

What a company gets in and out in cash is completely different from profit; so most likely they'll show a profit this Q, there's no real reason they shouldn't