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Ryuu96 on 23 October 2023
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KLXVER said:
Goatseye said:

It’s mind blowing that chronic forum dwellers, have so little grasp on the video game market discussed on this platform. Xbox is second in revenue in terms of revenue from platform holders, in front of Nintendo, even though the latter sells more consoles.
Xbox have better profit margin than PlayStation, even though Sony brings in more revenue, only to be superseded by Nintendo.
It seems like we’re still in 2013.

https://gameranx.com/updates/id/476524/article/xboxs-data-suggests-they-might-have-a-better-profit-margin-than-playstation/#:~:text=For%20the%20first%20nine%20months%20of%20FY2022%2C%20which,in%20comparison%20to%20their%20competitors%2C%20PlayStation%2C%20and%20Nintendo.

Doesnt matter when they spend 60+ billion to buy a company. They are not making a profit. They spend more than they make. Easy as that.

This isn't how transactions work, at all, Lol. A lot of people have the misunderstood notion that to make a profit, a company needs to make back any money its spent on acquisitions. Phil even had to explain this to FTC's lawyer in court to which he embarrassingly ended his line of questioning after speaking to his council.

Microsoft is using $69bn to acquire a company, they're paying that all in cash, in effect, ABK to them is worth $69bn and they're turning $69bn in cash to $69bn in assets, ABK being the asset. In addition, they acquired ABK in a time where interest rates were shit, if ABK can pull in similar (or more) money than interest on cash sitting in a bank whilst at the same time boosting other portions of a their business, then they will be happy with that.

It's more preferable that if a business opportunity presents itself, and the company can afford it, that they use their massive cash hordes rather than having them sit away in the bank doing nothing except accumulating interest. Microsoft acquiring ABK doesn't put the Xbox division at a -$69bn profit, Lol. It isn't accounted for in the profit at all.

There is no doubt about it now, the Xbox division does profit as of today, Phil confirmed this during the FTC trial, in front of the Judge, whilst on oath, that Microsoft Gaming pulls in single digit profits (billions) on a $15bn+ per year revenue. If Microsoft Gaming wasn't profiting then Satya would have gutted it already as he's more cut-throat than previous CEOs.