Xbox Platform decreases Microsoft's gross margin by $400m for FY2013/14

[Landguy]

maverick40 said:

czecherychestnut said:

oldschoolfool said:
So,what does that all basically mean?

It means MS spent $2.1 billion to make $1.7 billion in revenue from Xbox, meaning that they lost $400 million last FY13/14 from the Xbox platform (XB1 and X360). Now given that X360 would be profitable during that period, the loss must come from the XB1, so in essense the loss due to XB1 is $400 million plus whatever profit X360 brought in during that period.

Exactly, basically unhappy shareholders are still unhappy with Xbox. Although, that hasn't changed since the original Xbox launched. 

You are both wrong.

You have compared to time periods with different totals of sales and jumped to a wrong conclusion.  The  # of $1.7b is only the difference from the previous year, not the total of sales from the XB1.  The 360 sold a lot less, thus generating less revenue.  Becasue you only have half the number, you can't even come to that conclusion.  Also, even the $2.1b # is reflective of cost from other things, but it is "Mainly" due to XB1 (system launch costs?).  YOu grabbed 2 #'s and compared them without have 2-3 other #s that are actually needed( like the amount of revenue decrease from the 360).