Microsoft Reports $357 Million Profit in Entertainment and Devices Division

[Bitmap Frogs]

DarkNight_DS said:
Sorry guys... but I think this needs to be brought up in here. Microsoft's Xbox division didn't make money last quarter but most likely came very close to making money. If you look at the following you'll understand what's at play:

Q2 3 months ended Dec 31, 2007
Revenue $16.4 billion
Operating Income $6.5 billion
Net Income $4.7 billion

Entertainment and Devices Division
Q2 Operating Income $357 million

Operating income is your income before taxes and other expenses, Net Income is your profit after taxes and other expenses. As you can see, Microsoft chose to run with the Operating income number for it's Entertainment and Devices Division as it's the more impressive number to use. Sadly they didn't report on Net Income, most likely because it was a loss again for the company.

I swear, some of you people are hellbent on your particular crusades for/against certain companies.

Operating income has already discounted all the operating costs - the only other expenses it involves are interests but MS barely pays any of those. I'm not privy to the exact % of taxes MS pays, but the max. is around 30 something %, so let's make it 33% rounding it. The E&D was profitable to the tune of 230 million dollars - much to your dismay, it would appear.

 You aren't seeing 2 billion dollars hidden under the general umbrella of the corp at those two entries, operating income and net income of the corpwide numbers. Those are taxes.

 

PS: you might notice the difference between operating income and net income for the whole of the corp let's you know MS pays actually less than 33% taxes.