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Forums - Microsoft - Microsoft Lost $900 Million on Surface RT in Q1

Not surprising



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Mmmfishtacos said:
Its a flop and there's no way to spin it

never underestimate the rhetoric power and selective perception of kowenicki,dirtyp2000 and multimedialover!



I never knew what the point of RT was when you could get a nexus tablet or even an iPad a bit cheaper. The Keyboard cover was a good idea though but too expensive for what the tablet promised to do.

The Pro was a far better product but even that was too expensive and why buy it if you can get an ultrabook? It will take a while for Windows 8 to get onto it's feet.



Xbox Series, PS5 and Switch (+ Many Retro Consoles)

'When the people are being beaten with a stick, they are not much happier if it is called the people's stick'- Mikhail Bakunin

Prediction: Switch 2 will outsell the PS5 by 2030

Soleron said:
DirtyP2002 said:
...


I think this logic is a big problem on VGC.

Microsoft does not generate its revenues from being Microsoft. MS is that successful because 9 out of 10 times they make the right choice.
As Kowe said they make bets / investments / experiments or whatever you want to call it all the time. Xbox was such a experiment and it paid off.

Azure was an investment 3 years ago and it became a huge success. Office 365 is doing really well, too.

Are you living on a different planet? Online Services is still making big losses; EDD is making a loss.

None of their bets/experiments using Windows/Office have ever paid off, ever. You may call them a success by other metrics (supporting Windows pervasiveness) but not financial.

Their choices are only right for a product that has ~90% marketshare. Any other market they fail hard time after time.

Like for example their response to this is an expensive redesign of RT tablets. I expect a $900m writedown on that gen as well in a few months. The best thing to do would be to scrap it and focus on bringing full Windows down to a competitive price, size and weight.

 

The EDD just made a loss this Q, not for the full year. It always posts a loss for Q4.

Here are the results for the financial years:

2013: 848 million USD profit
2012: 364 million USD profit
2011: 1.257 billion USD profit
2010: 517 million USD profit
2009: 169 million USD profit
2008: 497 million USD profit

And that includes R&D, Zune, Kin and payments to Nokia. The EDD is a very healthy division. It hasn't post a loss since 2007.

Windows phone is on a pretty good way.
Skype (a 7 billion bet) is stronger than ever, posting a 41% increase YoY.
Heck even Bing is making small steps in the right direction and might actually turn a profit in the next 1 or 2 years.



Imagine not having GamePass on your console...

The devices are just not that appealing and way overpriced. I don't expect them to do better in the next quarter with even more new tablets to compete with.



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Why isn't there any competitor stats we can compare with. Like, how much does Sony made tablets sell?



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

The 900 million adjustment is most likely a retailer refund on revenue already collected due to price cut.

So if microsoft shipped 10 million Surface RTs and expected 500 bucks a pop in revenue (5 billion dollars), and now is adjusting price by 150 on unsold units (6 million), it has 900 million less revenue.

It doesn't mean they are "losing money" on the Surface at all...



This will ultimately get better. MS will develop more of a hardware culture, and figure more things out. However, my ultimate thesis of slowing growth, of having a much harder time in mobile, and will eventually lose more and more ground to apple and google



sales2099 said:
Why isn't there any competitor stats we can compare with. Like, how much does Sony made tablets sell?


Because there's not a way for Sony fants to spin how crappy  Sony is doing with their tablets like they like to pretend console exclusives don't count when they are on PC (because again, apparently the average customer buys a PC these days with all the equipment needed to support such graphics).



Already covered in this thread: http://gamrconnect.vgchartz.com/thread.php?id=164234&page=1