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lmaobox on 05 June 2014
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gergroy said:
lmaobox said:
gergroy said:

They xbox division reported a profit in their first quarter with the xbox one on the market... Also units sold do not equal profit...

The division containing the Xbox division reported a profit. Xbox division alone wasn't reported in MS's financial statement and the losses are probably covered up through Android licensing fees.

Also, units sold may not equal profit, but that figure will determine net profit. Units sold will determine 3rd party support, net profit made through software royalty fees, online subscription fees.

So you are guessing that the xbox division is losing money then?  

Units sold does not determine net profit at all (same thing as saying it doesnt equal profit by the way).  It may be a factor in determining third party support, but more important factor is ease of porting games from the leading console (in this case very easy, the x1 wont ever lose third party support, ps4 might get some third party exclusives though).

it does affect the gross income of the division and total license fees and subscriptions.  Thats true.  Still, you dont need to sell tons of hardware to make a profit.  The gamecube was profitable from day 1 and was profitable for nintendo.  It only sold 20 million units.  

You are saying profit, but you are refering to revenue.  All that matters in the end is the bottom line, did they make more money then they spent.  Microsoft can easily make more money than they spent even if they only sell 40 million units.  Thats all I am saying

The gamecube was profitable from day 1 because Nintendo likes to be cheap.

The sunk cost for the Xbone was humungous. The APU alone cost MS $3 billion in R&D. Also consider the amount of money Microsoft spent on titanfall advertisement all to have it blow up in their faces during NPD day. Now they're taking a hit on each console sold @ $399.

Xbox LIVE Gold subscribers are definitely going down, which must make Microsoft furious at Don Mattrick for destroying one of their cash cows. MS also lost a lot of software royalty fees to SONY. Microsoft now wants to torture and sodomize Don Matttrick for destroying their second biggest cash cow.

There is no way in hell MS will make a profit this gen with a puny LTD of 40 million.