(Business Perspective) Does MS really need Xbox Hardware?

[DonFerrari]

the-pi-guy said:

Azzanation said:

Sony have the marketing rights, which pushes a huge amount of CoD sales on their platform. Sales = Profits. Sony is making Billions on CoD alone, Xbox isn't. Sony have the Console CoD audience.

It's something like a ratio of like 2:1.  If Sony is making 1 billion, then MS is making something like 500 million. If Sony is making like 2 billion, then MS is making 1 billion.  

This is revenue specifically.

So this means Sony makes something like 1.3 billion revenue from Activision. And they probably keep something like $300 million of that, per year.  MS probably makes half that, $150 million per year from CoD. 

Azzanation said:

360 lost $4billion on hardware, the subs is what kept MS from leaving the market, the exact point of my thread. MS want subs not hardware responsibilities. 

It's harder to sell subs without hardware.

drkohler said:

Are you seriously trying to say that XBox is "a leader in profits"?

They were talking about Apple there.  

And saying that MS is trying to follow Apple's business model.  Not that MS is currently a leader in profits.  

Although I don't think it is the case it could even be that the profit margin of MS is higher than Sony for the console division or that it could be when they have more GP subs than HW.