Source downplayed the results predictably but it is rather odd that profit in the EDD division declined compared to last year. Live Gold only cost $50 last year. And aren't they selling Kinect at an insane margin?

Last year PS3 shipped 3.2 million, cant see Sony shipping less this time around with price cut. So maybe the gap now stand at 2 million? And just 1 million by year end?

>_>

Ethomaz predicted higher than Kowenicki. And I didn't mention it but my prediction was 2.4 million.

They already said, higher operating expenses.

lol.. throwing around XBox freebies by truckloads to students in the States is now called "higher operating epenses"? Well, gotta pay those truck drivers, somehow..

That doesn't explain why Revenue is up.

According to my figures (although adjustments have changed them a very small amount I think) since the X360 started profiting in FY2008, the EDD has made over $3 billion profit.

Since just before the Xbox was launched, up to FY 08 they were at $7.38B loss, now that's at $4.36B and should dip below $4B next Q given they made around $600 million profit last xmas? I can't remember, something like that.

Indeed, but we'll never know, so might as well analyse the division insted of second guessing.

how is VGC numbers in July~Sept

Is Skype a profitable business? Besides I think it's getting its own division with its own president (previous president of Skype) so not sure it'll be included, although it might be. They should put Skype, Windows Phone and all communications in one division, and entertainment standalone.

I think, if MS keep profits steady (although price cuts might hinder things obviously) they can get it down down below $2 bill loss by the launch of the next console.