| disolitude said: Sony's playbook? Doubt Microsoft is looking to lose money on their gaming division... |
Gregg Moskowitz of Cowen & Company asked Microsoft management to clarify why Xbox platform revenue grew $1.2 billion year-over-year in the second quarter, but at the same time related cost-of-goods-sold rose $1.6 billion.
Amy Hood, Microsoft's Chief Financial Officer, said that Microsoft is still in "launch mode" for the Xbox One and will continue to expand markets over the course of the year, implying the company could likely see costs exceed revenue in the near term. http://www.fool.com/investing/general/2014/03/05/electronic-arts-titanfall-is-a-big-deal.aspx
edit: After having those numbers added to last years numbers It at most it shows the margin on the console is currently pretty low, but not necessarily losing money. With a 100 dollar pricecut around the corner that could change but I was wrong to insinuate they already were losing money.
