rocketpig on 24 April 2008
That doesn't even make any sense, RocketPig, and you know it. On the face of it, one could point out that the unit they get the money for on April first will go towards units they produce and ship in June, but do not get the money for until July. The point is, they have 3 months worth of produced, shipped and sold consoles, and they're counting three months of sold consoles.
But what they're doing with the repair-cost chargeback is saying, "We have these ongoing costs that we shouldn't have, so we want to show our investors that without those unforseen costs, we'd be making tiny profits."
The costs were foreseen, though.
But what they're doing with the repair-cost chargeback is saying, "We have these ongoing costs that we shouldn't have, so we want to show our investors that without those unforseen costs, we'd be making tiny profits."
The costs were foreseen, though.
My point is that the money has been counted against the division. The division took a massive loss in one year as a result.
End of story. That's it. We have no idea why kind of money MS is pumping out today on RRoD costs but we do know that they already took out $1b to offset future costs.
Calling it a paper-profit is completely speculative and very misleading.
And again, I seriously doubt MS took a profit hit like that for investors. That's a silly notion. It was for the taxes.
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