Xbox is not going anywhere, lets rid this talking point.

[theprof00]

AsGryffynn said:

theprof00 said:

windows is all profit though.

xbox is not. If someone buys an xbox, and two games, microsoft will get revenue of 400$, but profit of 20-30$. If someone buys 100$ of windows, ms profits 100$ of windows.

MS likely...scratch that...DOES make more on windows than xbox. Way more.

Looking at the graph, and breaking down the numbers, "gaming" rev was around 5b, while windows was around 3.5-4b even if ms made 50% profit off of xbox revenues, it would still be under windows by 1-2 billion...or double....and that's being very generous.

Revenue is revenue and they are keeping it... They are easy money... 

Actually, in terms of stock health, if you make 200 billion in revenue (sales to distributors) but it costs you 199,999,999,999 (only a dollar profit). Your company will not be worth very much.

See, in terms of wall street, corporate health is calculated as profit divided by revenue. The better your profit margins (difference between sales and cost) the better your company will do.

In the market, a company that sells 10m consoles and only makes a dollar on each is worth less than a company that only sells 1,000 consoles, but makes 1k on each.

to be completely clear, even if ms made the exact same amount of money with a "steam box" even if it sold less, if they make a higher profit margin, their stock will go up, which means their value goes up.