Microsoft made a profit again!

[NJ5]

TheBigFatJ said:

NJ5 said:

Regarding the billion for RROD, that's history... It was set aside long ago, so it won't affect current and future reports (unless the billion runs out).

 

This is true, but it's sort of like a company saying, "we produced 5 million consoles and had a huge loss this year. But next year we're going to sell them and have a huge profit. So we were profitable!"

The point is that the profitability is paper-only -- that is, they're literally losing money now, but they're losing money they set aside and listed as a huge loss last year instead of this year. So while they're losing last year's money now, their product is still losing money, even if it shows to make money on paper.

It depends on how much of the billion they've spent... I have no idea whether they're spending more from that than they're currently making.