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Amazes me how many people dont know how to determine profit, loss, revenue, cost of revenue. No where does this information make it clear that the Xbox One portion of the Xbox business is losing money. Of course the cost of revenue for a product that costs more to produce is going to be higher. So they spent 2.1B more and made 1.7B more that doesnt mean they had a loss. One year I sell product that costs $10 to produce and I sell it for $50. The next year I sell a product for $70 that costs $50 to produce. Yes mot cost of revenue will be higher compared to the previous year.

 

Also the talk of unhappy shareholders is a fallacy anyway. It is something that a few shareholders with public voices have said and more so a few things that some speculative analysts have said. Most institutional investors dont give a rats ass.  Really they want MS to build the Xbox brand because it keeps MS in the minds of consumers, but just businesses. 



Its libraries that sell systems not a single game.