cosmic_drift said:
Are we talking only their gaming division? If so, they still have a problem retaining it. |
Microsoft's gaming division makes more money than Nintendo does and its been pretty consistent in doing so. There is a lot of things in the gaming division Microsoft makes money off compared to the amount of cash flows Nintendo has. Microsoft makes hardware sales, software sales, content deals with say Netflix or other companies, the use of Bing on their system provides increased revenue, xbox live subscriptions, etc. To take an example of the last available quarter data of Q1 2017 just their gaming division had a $1.9 billion dollar revenue stream for Microsoft. Ignoring the profit Microsoft made from other aspects of their business. Nintendo's gaming division in that same time had a net operating loss of $49 million. In fact Nintendo's gaming division has been operating at a loss for quite some time now, even with relatively strong 3DS sales. I'd say Microsoft is doing FAR better with revenue streams even when hardware doesn't move than Nintendo. If hardware doesn't move for Nintendo they are dead in the water as they have very little consistent revenue elsewhere without subscriptions, online partnerships, browser revenue, etc.
