Microsoft may spinoff Xbox brand?

[Alby_da_Wolf]

kowenicki said:

mike_intellivision said:
Interesting how long term profit and loss potential (history) does not get taken into account by market analysts.

I wonder how much of an operating loss and/or for how long Microsoft will take on th XB1. I also wonder where all the R&D shows up on the accounting statements.

in the E&D division.

much of it will already have been in there.

Actually not: part of R&D costs (and many other costs too, including legal expenses) of all divisions are accounted for in the "cauldron" balance sheet item named "Corporate-Level Activity"

http://www.microsoft.com/investor/reports/ar12/financial-review/discussion-analysis/index.html

This makes quite difficult to exactly tell if a division with operating income greater than zero, but less than Corporate-Level Activity, is actually profitable or not.