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Forums - Microsoft - Yahoo: "Microsoft can no longer afford to keep investing in the Xbox"

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BenVTrigger on 04 December 2012
007BondAgent said:
DirtyP2002 said:
actualli the 360 covered all the losses it made for the gen. SO the 360 is a profitable business. If they talk about the original Xbox, MS has a way to go, but they are doing fine right now. Especially with XBL generating a profit from the very start of next gen.


Microsoft has lost more money in this gen, then they have made..

Even with xbl profits and all.

2005-2006 and 2007 hurt them the most.


Sorry but your wrong on that one.  The 360 is profitable



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Soundwave on 04 December 2012

So wait the article claims Microsoft had $9 billion in operating profit last year, and the XBox division made about $370 million in profit ... but yet they can't afford it?

LOL.

MS is a company that just spent $8 billion to buy Skype. They have so much money they don't even know what to do with it.



Lostplanet22 on 04 December 2012
007BondAgent said:
nightsurge said:
007BondAgent said:
DirtyP2002 said:
actually the 360 covered all the losses it made for the gen. SO the 360 is a profitable business. If they talk about the original Xbox, MS has a way to go, but they are doing fine right now. Especially with XBL generating a profit from the very start of next gen.


Microsoft has lost more money in this gen, then they have made..

Even with xbl profits and all.

2005-2006 and 2007 hurt them the most.

This post is wrong.

Where was the "Big 3 gains/losses over the years" thread? Would do this thread a lot of good to show that the 360 itself has erased all the losses and begun profiting while the original Xbox's losses are still around.

And please, lets not let the division of EED distort our view of Xbox profits. EED division has Windows Phone, Zune, Xbox, and a variety of other small products. The main money loss in that division is from Zune and Windows Phone. If they were out of the division, I would imagine Xbox posting over a billion in profits per year alone. That's more than worth it.


http://gamrconnect.vgchartz.com/thread.php?id=136006

Here it is

That is an old one,  Even nothing included for 2012:s. 



 

Akvod on 04 December 2012
kowenicki said:
Akvod said:
Proclus said:
What kind of a failed article is this?

A: $67 billion in cash reserves say hi.

B: Despite massive R&D expenses during the last 3 Q's the division is still profiting.

C: The rest of the business collapsing? lol.

Kinda suprised anyone bothered to post this failure of an "article".

http://en.wikipedia.org/wiki/Cost_of_capital

http://en.wikipedia.org/wiki/Opportunity_cost

Just making a profit isn't enough. The money they make has to be greater than the money they (investors) could have made by investing in something else.

For investors... yeah thats right, I agree. 

Stock YTD:

Google v Nintendo v Sony v Dow v Microsoft.

 

 

So its pretty much in line with Google and the Dow.  Not much opportunity cost there given the correct diversification and volatility required in an effective portfolio.   This of course doesn't factor in the dividends payable.  


But you're looking at the entire company. We're looking specificly at the XBox division (although getting cost of capital for that would probably be difficult, since there's only 2 other comparable companies, a few more if you look at historical data [but that's probably irrelevant now]).



Exile1987 on 04 December 2012
kowenicki said:
pokoko said:
This is a good thread for anyone who wants to see ad hominem attacks in the wild.


You have a very, very high opinion of yourself don't you?  Getting a little tired of your pious posts

Enough of denigrating and belittling the posters here, if you dont like the reactions in the thread then ignore them.

I dont see you ever commenting on fans of another persuasion in the same way.  You are like a miserable old schoolmaster on xbox watch.




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walsufnir on 04 December 2012
z101 said:
Galaki said:
Yahoo would be long gone before Microsoft lose any money.


MS lost already billions with xbox. The small profit MS is making with the xbox now is nothing compared with the loss before.


ach z101, musst du hier auch noch posten? reichen nicht das heise- und golem-forum? manmanman...

@post: and you have the numbers that prove your statement?  i want numbers of losing billions, of a small profit for ms (especially compared to sony and bigN) and a comparison to "before". thans in advance.



Turkish on 04 December 2012

I agree, if Xbox 3 doesn't become the success they want, it could be the end. MS will probably shift all their focus on desktops and tablets because those are existential problems.



Proclus on 04 December 2012

lol, right.



MDMAlliance on 04 December 2012
007BondAgent said:
nightsurge said:
007BondAgent said:
DirtyP2002 said:
actually the 360 covered all the losses it made for the gen. SO the 360 is a profitable business. If they talk about the original Xbox, MS has a way to go, but they are doing fine right now. Especially with XBL generating a profit from the very start of next gen.


Microsoft has lost more money in this gen, then they have made..

Even with xbl profits and all.

2005-2006 and 2007 hurt them the most.

This post is wrong.

Where was the "Big 3 gains/losses over the years" thread? Would do this thread a lot of good to show that the 360 itself has erased all the losses and begun profiting while the original Xbox's losses are still around.

And please, lets not let the division of EED distort our view of Xbox profits. EED division has Windows Phone, Zune, Xbox, and a variety of other small products. The main money loss in that division is from Zune and Windows Phone. If they were out of the division, I would imagine Xbox posting over a billion in profits per year alone. That's more than worth it.


http://gamrconnect.vgchartz.com/thread.php?id=136006

Here it is

I'm not entirely certain at how accurate that chart is, but this is measuring JUST the gaming departments for both Sony and Microsoft, right?  Because I don't think that Sony was positive in 2010 and that Microsoft was negative as a whole.



pokoko on 04 December 2012
kowenicki said:
pokoko said:
This is a good thread for anyone who wants to see ad hominem attacks in the wild.


You have a very, very high opinion of yourself don't you?  Getting a little tired of your pious posts

Enough of denigrating and belittling the posters here, if you dont like the reactions in the thread then ignore them.

I dont see you ever commenting on fans of another persuasion in the same way.  You are like a miserable old schoolmaster on xbox watch.

Ruh roh, someone is having a bad morning.  Honestly, I don't care what you're getting tired of  =]  Just seems silly to see several posts attacking Yahoo rather than what the article is actually saying.  Did you read my first comment, where I said Xbox is an important brand for Microsoft in terms of their whole strategy?  What are you even talking about, anyway, with the "other persuasion" comment?  I mean, you of all people?  Seriously, you?  That's awesome and ironic in one nifty package.  Besides that, I have nothing against Microsoft, as I'm mostly a PC gamer, anyway.  Regardless, you're coming across as the miserable one here.  Lighten up, your Xbox still loves you (not really, it's inanimate) and it's the holidays!