Mega meltdowns if true!
But who really knows outside their own accountants and shareholders?

Have we not seen how analyst try to make something out of nothing a lot of times.  Information, even if half truth or not makes money on the market.  I always give analyst that pinch of salt because you never really know their agenda.  

That doesnt add up at all since that part of MS was posting a profit before the patents, WP and Skype. I would rather suggest that XBox is actually driving the profit since XBLG continues too grow. This is probably just a way to critizise MS for entering the hardware market in such a distinctive way, where som analysts seems determined that it is a bad move for MS.

Scherlund is Bill Gates friend.

Microsoft is hemmoraging this much money over the last 3 years. Its ridiculous

He is talking about the last quarter? If so I believe it is true... the massive amount of money to release a new console is crazy guys and MS faced a lot of issues with Xbone development this year.

PS4 hurt the Game division this quarter too.

Maybe because they're launching a new console? Millions of consoles being produced, games being published, marketing, etc.

Lets not forget MS apparently spent $500 million when launching Kinect.

@ Bolded: Really thats just an asumption.  It could also be that Xbox and XBL also help hide the cost of other parts within the EDD that are not successful.  If you want to know how important the Xbox brand is to MS, you only have to look at the amount of money they are willing to continue to spend on it.  There is no such things as these other devices or services dragging down the Xbox division as the company as a whole needs to balance, revenue, profits and losses.

As for MS liking or not liking transparency, all companies do this.  There will be products that perform and some that do not and thus lumpting them in the same division helps to defer the cost for everything.  It really seems silly to think MS would put all underperforming products in the same division.  Instead you would have a combination of both.

Nintendo never did it, Sony does it with the PSVita. and PSP in their reports

I believe it. NFL cost them 400 million right out of the gate. God knows how much money MS poured into Ryse, Titanfall, Dead Rising and their other titles. 300 million went into their new controller. R&D for the actual Xbox One, production, etc. I'm surprised that number isn't any higher (Unless they're hiding part of the bill somewhere else).

I thought the new controller was closer to $100 million. $300 million... that's just silly.

The Xbox 360 appears to be very profitable. Maybe that's where they're hiding some of those X1 bills.