Based on MSFT numbers:
Over 19 Million Consoles Sold (at end of Q3 FY 2008)
7.5 attach rate for games; 3.6 attach rate for accessories
Until the end of Mar 2008 - XBox has been out for (Nov 2005) = 28 months
For the 3 Quarters ending Mar 2008:
Games = $230 Million = (19 million x 7.5 attach rate divided by 28 months x 9 months @ $5 per game net profit)
Accessories = $110 Million = (19 million x 3.6 attach rate / 28 months x 9 months x $5 per accessory net profit)
XBox Live = $144 Million = (8 million PAYING customers x $2 per month net profit x 9 months)
Total Profit = $484 Million (CONSERVATIVE ASSUMPTIONS) for 9 months out of the $614 Million Profit of the Division
If your assumptions are more aggressive, then the profit is even greater. If you have different numbers in mind, please explain.
Discuss.
