EpicRandy said:
Same here. But it might be event worst, MS may just have completely inserted themselves in the handling of such decision. |
I believe people are not understanding something about this report and going on the wrong assumption. The 30% is "accountability margin" which for MS doesn't mean the same thing as just a base 30% profit margin to the division. MS has this same 30% for all of their divisions and its more of a internal baseline that do not include a lot of the cost that is associated with a complete product cycle to market but is more something that is measured based on specific datapoints. This is why it seems like MS is making some impossible profit margin but in reality its not based on the same data metrics like EBITDA.
Yes, MS has transitioned that the Xbox division needs to be profitable but that margin isn't what you think it is.
