By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Microsoft - Business Insider : MS loses 2 billion a year from Xbox, Hides it with Andriod Royalties

Lock if old.

http://www.businessinsider.com/microsoft-earns-2-billion-per-year-from-android-patent-royalties-2013-11#ixzz2jyrv03hK

Microsoft is generating $2 billion per year in revenue from Android patent royalties, says Nomura analyst Rick Sherlund in a new note on the company

He estimates that the Android revenue has a 95% margin, so it's pretty much all profit. 

This money, says Sherlund, helps Microsoft hide the fact that its mobile and Xbox groups are burning serious cash. 

For the past few years, Microsoft reported the revenue and operating losses of Entertainment and Devices, which was the group that housed Xbox, Windows Phone, and those Android royalty payments. 

That group always seemed to be profitable, but Sherlund says it's largely because of the Android money.

Sherlund says that if you back out the Android profits, Microsoft is probably losing $2.5 billion on Skype, Xbox, and Windows Phone. Of that, $2 billion in losses are attributable to the Xbox platform


I am Torgo, I take care of the place while the master is away.

"Hes the clown that makes the dark side fun.. Torgo!"

Ha.. i won my bet, but i wasnt around to gloat because im on a better forum!  See ya guys on Viz

Around the Network

Sorry, Turkish already created a thread based on this article



Click this button, you know you want to!  [Subscribe]

Watch me on YouTube!

http://www.youtube.com/user/TheRadishBros

~~~~ Mario Kart 8 drove far past my expectations! Never again will I doubt the wheels of a Monster Franchise! :0 ~~~~