Global Hardware Feb 7-13 - Super Mario 3D World Pushes Switch Sales Above 400,000

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SKMBlake said:

Elputoxd said:

Spencer said a few weeks ago in Larry Hryb's Podcast that the Gaming division is profitable. Microsoft doesn't give profit figures for every product or service, only for the full divisions. So basically we know the division Gaming is in is very profitable - as per their last report - but we can't know the exact profit of Xbox and the other products within that division.

Nadella also said Gaming is "very profitable" in their last report but yeah we don't have exact numbers.

Do you have source for Nadella's statement ?

And yeah, restructuration of difivisons under bigger things to hide bad performance is pretty common. And the way reports are made doesn't help either. "Microsoft report shows record in profit while Xbox division see revenue reaching several billions" -> people assume MS's profits come from Xbox 

-> the reality is that the Xbox hardware and Game Pass make them lose money

Another thing about hiding real performance by only anouncing an entire division wich the Xbox is part of, is that all the other parts of that division also have a cost to operate. That disparity dosent show but from that the very least we can say is that out of that 11B a bigger percentage of it goes to cost as it encompasses a lot more stuff while both Nintendo and Sony are pure gaming so they have lower cost to operate.

But like you said. Thats the reality of these kind of services. They are meant to be a long term investment of wich a huge loss is expected at the begining. There's no doubt in my mind that xbox is in the red.