Teeqoz on 29 January 2016
LudicrousSpeed said:
I'm not keen on all this financial stuff, but how does MS have roughly the same revenue as Sony but over five times the profit? Do they just have divisions that lose way more money? |
Microsoft is in businesses with way higher margin (software), while Sony is primarily in businesses with lower margins (hardware). Apple is basically the only hardware/electronics company that manages to maintain a very high operating margin.
It also obviously doesn't help that a lot of Sony's divisions have performed weakly, but in general, software has higher operating margins than hardware.
