MICROSOFT FY15 Q2: Analyst estimates beaten again. Revenue $26.5bn, Op income $7.8bn. Xbox 6.6m shipped.

[binary solo]

tak13 said:

walsufnir said:

tak13 said:

Don't get angry with what I will say but the intersting is the loss it made from xb1 price cut in USA!Although it's easy to count it,50$ loss per console(399$ manufacturing cost-349$ price=50$ loss per console),2.4m xb1 sold in November-December in the USA equals to 120.000.000 loss!

However,it has to be bigger as there were bundles that contained 2 games that ms of course paid the developers for them and also didn't  get  any profit from them as the bundle were being sold at 349$ too...

How do you get the $399 for manufacturing cost?! I guess you are quite wrong here...

http://venturebeat.com/2013/11/29/the-deanbeat-the-xbox-one-cost-471-to-make-the-ps4-costs-381-and-why-this-matters-in-the-long-run/ 

KInectless xbox one's manufacturing cost is 396$(Sorry,for saying it's 399$:P)so 47$  loss per console=112.800.000

You can't base end of 2014 manufacturing costs on year-old calculations. Even if they were highly accurate at the time. I would not be surprised that Xb one manufacturing cost has dropped to ~$350. But even so, with distribution, marketing and retailer margin thrown in that's still a loss on each console for MS. Just not as big as your posts have been suggesting. But you've also got to take into account the money MS had to pay to be able to pack ACU and AC:BF into that $350 price tag. That will bleed several dollars off the Xb one revenue steam into MS as well.

Assuming there is some loss being made with Xb one. Which I think there probably is. I think it's disingenuous to dismiss possibly $100 million loss as peanuts. The question is, what is MS buying with that loss. If you look at a loss as an investment in something, then the loss isn't a loss. But if the loss isn't actually achieving anything meaningful then it's just a loss and it's a drag on the company. The question is what value does MS get from being in the console business in the first place, and what value does it get from having 1-2 million more Xb one's in homes than it would have had if it was at $399 through the holidays? From an MS corporate strategy perspective I think consoles are old news, and the game console sector is a distraction for MS. Xbox was created to fight a war for control of the living room. Game consoles in general have lost that war. The war was one by tablets, Apple TV (and similar devices), and even the good old PC. Now that you can stream content direct from several multi-purpose devices what place do consoles have in the living room apart from gaming for gamers. Consoles are more multi-purpose than ever, but the reality they will never be seen as anything other than gaming devices with some other features. And now game streaming is becoming the next thing, which will make consoles that much more obolete. This is why I believe 8th gen will be smaller than 9th gen, and that traditional console sales peaked in gen 7. Consoles is no longer a battle ground in which MS should have an interest, and to lose money in a sector that is no longer relevant to MS's strategy is a waste. Indeed one might argue that MS was distracted by Xbox to the point that they missed the opportunity to get out in front, or at least be the fastest follower, with smartphones and tablets.