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Forums - Microsoft Discussion - Xbox Platform decreases Microsoft's gross margin by $400m for FY2013/14

Why did I know that Kowen's already wrecking up the place before I clicked the thread?

Should've gotten here earlier.



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S.Peelman said:

Uhm, maybe I'm overlooking something and being stupid, but...

I don't think it says that.

It said revenue and cost of revenue increased by an amount, not what amount it increased to. Wouldn't we need to know from what number both increased to come to any sort of conclusion?

EDIT: Yeah, Ka-Pi sort of Ninja'd this observation.

We can say that XB1 cost MS $400 million, what we can't say is that the Xbox Platform as a whole lost money (a mistake I made before) because we don't have the absolute amounts. Total revenue could still be higher than the cost of revenue (making them profitable) but if the cost of revenue has increased faster than total revenue when the only change has been the release of the XB1, then it can be inferred that the XB1 lost MS $400 million, versus if it hadn't been released. 



maverick40 said:

Shareholders have been unhappy with the Xbox brand since its inception. As a whole though, they are pushing all the right buttons.

How long will the Xbox experiment go on for thouigh?

Well of course, i agree with you. Just certain people seem to think the Xbox brand is loved by everyone and means a lot to Microsoft, when really it is an ant compared to it's other division's.



S.Peelman said:

Uhm, maybe I'm overlooking something and being stupid, but...

I don't think it says that.

It said revenue and cost of revenue increased by an amount, not what amount it increased to. Wouldn't we need to know from what number both increased to come to any sort of conclusion?

EDIT: Yeah, Ka-Pi sort of Ninja'd this observation.

Well, that would be easy since we have the 72% number.

It was 2.9B but is now 5B



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czecherychestnut said:
S.Peelman said:

Uhm, maybe I'm overlooking something and being stupid, but...

I don't think it says that.

It said revenue and cost of revenue increased by an amount, not what amount it increased to. Wouldn't we need to know from what number both increased to come to any sort of conclusion?

EDIT: Yeah, Ka-Pi sort of Ninja'd this observation.

We can say that XB1 cost MS $400 million, what we can't say is that the Xbox Platform as a whole lost money (a mistake I made before) because we don't have the absolute amounts. Total revenue could still be higher than the cost of revenue (making them profitable) but if the cost of revenue has increased faster than total revenue when the only change has been the release of the XB1, then it can be inferred that the XB1 lost MS $400 million, versus if it hadn't been released. 

Eh, but we do have the absolute numbers.

Cost of revenue was 5B while revenue was 6.7B (1.7B + 1.7B/0.34). Yep, they didn't lose money lol



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I am surprise it is so little. However losses so early in a console's life is not unusual.

I am now waiting for someone to claim to be the CEO of Microsoft posting on this forum. Anyone can claim to be anyone or claim to know anyone on an internet forum.



Ninsect said:
czecherychestnut said:
S.Peelman said:

Uhm, maybe I'm overlooking something and being stupid, but...

I don't think it says that.

It said revenue and cost of revenue increased by an amount, not what amount it increased to. Wouldn't we need to know from what number both increased to come to any sort of conclusion?

EDIT: Yeah, Ka-Pi sort of Ninja'd this observation.

We can say that XB1 cost MS $400 million, what we can't say is that the Xbox Platform as a whole lost money (a mistake I made before) because we don't have the absolute amounts. Total revenue could still be higher than the cost of revenue (making them profitable) but if the cost of revenue has increased faster than total revenue when the only change has been the release of the XB1, then it can be inferred that the XB1 lost MS $400 million, versus if it hadn't been released. 

Eh, but we do have the absolute numbers.

Cost of revenue was 5B while revenue was 6.7B (1.7B + 1.7B/0.34). Yep, they didn't lose money lol


Oops, you are correct! Glossed over the percentage figures. 



I'd expect consoles to make a loss this early in the generation. There always seems to be one that bucks the trend (PS2/Wii) and PS4 seems to be that console this gen.



just 400m for the frist year?
will be profitable next year for sure :)



prinz_valium said:
just 400m for the frist year?
will be profitable next year for sure :)


Depands how the K unbundlking effects it.  Not force selling them by the millions might be a massive finencial burden to write of later.  

Low sales mean a cluster of finencial issues.  Likly even more loss next time.