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finanzen said:
DanneSandin said:
I wonder how profitable the gaming division is for MS? I would expect that it isn't all that great, hence why they don't disclose the numbers. But I could be totally wrong?

the most profitable parts of the gaming divison are game sales and xbxo live. not hardware

ms gaming divison made ~$7.4 billion  in the last 9 months (july 2015 - march 2016)
sony made $11.6 billion while $5.7 billion accounted for hardware in the same timeframe
only about 50% of sonys gaming revenue is non hardware

for microsoft, that number is bigger (xbox one gets outsold by ps4 about 2:1 so hardware revenue should be in the ~ 3billion range only)

 

MS:
~3 billion hardware
~4.5 other gaming related revenue

Sony:
5.7 billion hardware
5.9 billion other gaming related revenue

 

but ms does not give hard numbers for live, games and hardware as ZhugeEX said. so take this figures as estimates.
the biggest question is operating income, where we don't have any clue. yes live and gaming has way higher margings and profits compared to hardware (to be fair, hardwar has next to none, nevertheless) , but ms marketing and sales expenses are unknown and probably big due to retailer and sales promotions


Yes, I think that XboxLive is what saved MS's gaming division as a whole and is one of the major reasons why MS still bothers with the Xbox brand. They're probably making huge amounts of it, well, pennies really when compared to the rest of MS. I suspect they haven't made much profit from HW at all, with the RROD last gen and the debacle of the launch this gen. XL and SW is what makes MS afloat as a game publisher. It's actually quite interesting how the Big 3 contrasts to each other; Nintendo earns a lot from their HW (usually) and periferies, while MS is earning from SW and Live acounts while Sony... I guess they're a combination of both?



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