Adinnieken said:
The thing to understand is that while the division that the Xbox team is a part of is doing well, the team that Xbox LIVE is a part of has slowly been climbing up. The Online Services business has been in the red for a LONG time. Xbox LIVE is paying for a lot more than just the cost of the Xbox LIVE service. With Xbox LIVE being successful Microsoft is going to do two things, 1) they're going to eek out every cent that can so get the division to balance, 2) they're try to build on the success of the service as much as possible expanding it out. |
I don't really know about it being in the red for Microsoft and agree with both Pachter and Beer that Microsoft is in profit heaven with it (Next year will be eight years exactly) but no doubt its still in the red for Sony, which is why they had to add PSN Plus and probably soon they will need ads to break even while being subsidized.