drkohler said:
There is no research into EDD possible, since MS never details which parts inside the division are profitable or not. We can all guess until we are blue in the face and only list some known facts like: a) Some parts inside the division (like Peripherals, Mac Software) were highly profitable throughout the years, while other parts were not. We have seen one statement by MS (1-3 years ago) saying that "all parts inside the ED division are profitable". Again, we have NO numbers to decide. b) Ms did shift money around (like the $1b additional loss due to rrod which was NOT charged to EDD. Same with specific, heavy advertising costs which were (partially?) drawn from the corporate expenses coffin. Again, we have NO specific numbers to decide. c) Here is a bit of thought for you: In Europe, X360 typically sells for around $200-$250 (during XMas season, that price actually INCLUDES Kinect. In GB, X360 only took off when the 99pound bundles started to appear...). At the same time, PS3 typicaly sells for around $329-$349. Now if Sony can bearely make a profit with those prices, what makes you think MS profits on hardware? d) online X360 charges are the key profit in the ED division |
@Bolded: Come on now krkohler, you are making the whole profit thing way to simplistic. First MS does not sell to all of Europe at Christmas time prices. Second, other parts of Europe do not get those specials and last, other countries make up the difference. We all know what a lost leader is and we all understand how MS look to sell you services like XBL, XBLA games and assessories. There is a hell of a lot more to make a profit then the actual console. On another point why would anyone think it cost MS to build the 360 the same as it cost Sony to build the PS3. No one knows how much profit MS is making on the 360 hardware but I am sure since MS has not adjusted the price for over 3 years, its a decent amount.
