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DiscussionTime on 23 July 2014
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jnemesh said:
DirtyP2002 said:
jnemesh said:

You need to subtract the extortion money they are getting from Android.  Take that money out and they post a loss.

As I said, these rumors were debunked months ago.
Just one arguement for you: The Xbox business reported a profit before Android was even released.


Link or it didn't happen.  I never saw the "debunking" of this story.  It has been widely reported that they are "hiding" their losses with creative bookkeeping.  Also, you are wearing your colors in your tag.

I have been reading your messages, and it seems your claim is based on 3rd party journalists and rumors. I mean yes it is true that Android patent royalties make the division profitable for Surface, Windows Phone, and Xbox, but that doesn't mean Xbox itself is posting a loss.

http://en.wikipedia.org/wiki/Android_%28operating_system%29

This wiki says that Android first came out in September 2008.

http://www.gamasutra.com/view/news/110426/Microsoft_Xbox_Division_Sees_426m_Profit_In_Fiscal_2008.php

$426 million profit from FY 08. Posted on July 2008. An official statement from Microsoft's quarterly statements.

Now the most crucial link:

http://www.zdnet.com/microsofts-most-profitable-mobile-operating-system-android-7000015094/

"Microsoft has been making hundreds of millions a year from Android since 2011"

Based on all three points, one can logically deduce that Xbox has been profitable before Android patents help drive profits in the entertainment and devices division. It has been profitable since 2008 - November 2013, as we don't know specifics since the 8th gen launch. While we don't know specific profit margins since the Xbox 1 launched, what we can know is that Xbox 360's continued profitability is either 1. making up for Xbox One's early losses or 2. Softening any losses until it can be self-sufficient.

Also, you made a valid point about investors calling for Xbox to be sold. This was explained because some investors want an all-in approach with Windows and MS Office, Microsoft's bread and butter. While the Xbox division is profitable, it is small change compared to the real cash cows of Microsoft. Regardless, it is still in fact profitable. As for Surface and Lumia, I have no comment on the matter.

I look forward to your response and hope we can come to a understanding.