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Forums - Microsoft - Official Microsoft Earnings Results for Q3 2010

theprof00 on 22 April 2010

So I did some math on xboxlive numbers, and if 20M people subscribe to xboxlive and pay 9$ a month, they should be making 540M in a quarter. Of course lots of people just pay per year, not per month, but even so, subtracting the 165M profit this quarter gives us 380M to take away from my math.
WHat the hell does MS spend all its money on?!?!?

 

I guess a better question is, what the hell is dragging down EDD so much.



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matt247 on 22 April 2010
Shorty11857 said:
I wonder if the 360 has been profitable for MS yet, I imagine it's likely to be profitable or close to it by now

it's been profitable for awhile



Shorty11857 on 22 April 2010
theprof00 said:

So I did some math on xboxlive numbers, and if 20M people subscribe to xboxlive and pay 9$ a month, they should be making 540M in a quarter. Of course lots of people just pay per year, not per month, but even so, subtracting the 165M profit this quarter gives us 380M to take away from my math.
WHat the hell does MS spend all its money on?!?!?

 

I guess a better question is, what the hell is dragging down EDD so much.

$9 a month? I'd say they make more like an average of $50 a year which would be $250 million a quarter



Huya on 22 April 2010
theprof00 said:

So I did some math on xboxlive numbers, and if 20M people subscribe to xboxlive and pay 9$ a month, they should be making 540M in a quarter. Of course lots of people just pay per year, not per month, but even so, subtracting the 165M profit this quarter gives us 380M to take away from my math.
WHat the hell does MS spend all its money on?!?!?

 

I guess a better question is, what the hell is dragging down EDD so much.


I blame Zune



Shorty11857 on 22 April 2010
matt247 said:
Shorty11857 said:
I wonder if the 360 has been profitable for MS yet, I imagine it's likely to be profitable or close to it by now

it's been profitable for awhile

I meant overall



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theprof00 on 22 April 2010
Shorty11857 said:
theprof00 said:

So I did some math on xboxlive numbers, and if 20M people subscribe to xboxlive and pay 9$ a month, they should be making 540M in a quarter. Of course lots of people just pay per year, not per month, but even so, subtracting the 165M profit this quarter gives us 380M to take away from my math.
WHat the hell does MS spend all its money on?!?!?

 

I guess a better question is, what the hell is dragging down EDD so much.

$9 a month? I'd say they make more like an average of $50 a year which would be $250 million a quarter

Like I said, even if they only made 165M a quarter, where is the profit from licensing, hardware sales, and game sales?

EDIT: correction, monthly rate is 8, not 9. But yes, I know that most people buy yearly subs.



matt247 on 22 April 2010
theprof00 said:

So I did some math on xboxlive numbers, and if 20M people subscribe to xboxlive and pay 9$ a month, they should be making 540M in a quarter. Of course lots of people just pay per year, not per month, but even so, subtracting the 165M profit this quarter gives us 380M to take away from my math.
WHat the hell does MS spend all its money on?!?!?

 

I guess a better question is, what the hell is dragging down EDD so much.

R&D



theprof00 on 22 April 2010
matt247 said:
theprof00 said:

So I did some math on xboxlive numbers, and if 20M people subscribe to xboxlive and pay 9$ a month, they should be making 540M in a quarter. Of course lots of people just pay per year, not per month, but even so, subtracting the 165M profit this quarter gives us 380M to take away from my math.
WHat the hell does MS spend all its money on?!?!?

 

I guess a better question is, what the hell is dragging down EDD so much.

R&D

but think of this too. Just on the number of games (27M) they make nearly 450M. First party games make much more than that, and 360 revenue must be pretty high too. Probably around 25-50$ per Elite and maybe 5$ per arcade.

That's a lot of R&D money, especially considering that they didn't invent Natal, some other company did.



yaskar on 22 April 2010

In two years, Xbox live will give 2 billions profits by quarter.
In two years 30 millions Xbox live gold could be possible and so 2 billions for a year.

Don't forget natal wich will be a fantastic success.



Squilliam on 22 April 2010
theprof00 said:

So I did some math on xboxlive numbers, and if 20M people subscribe to xboxlive and pay 9$ a month, they should be making 540M in a quarter. Of course lots of people just pay per year, not per month, but even so, subtracting the 165M profit this quarter gives us 380M to take away from my math.
WHat the hell does MS spend all its money on?!?!?

 

I guess a better question is, what the hell is dragging down EDD so much.


Research and development is a big one. For instance they have a ~500 person R+D division headquarters in Israel and thats only their third largest which is doing Natal related things. They also have invested heavily in Windows Mobile 7 + whatever else they've been doing.



Tease.