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

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

BeElite said:
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.  


true.

i am wondering though, would the profit margin be higher or the XB1 sale now (or lose being lower). due to kinect probably costing them more than 100$ to make? 



Around the Network
BeElite said:
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.  


maybe that will cut theire profitl. but maybe it will benefit because of the much more sold units

 

frist year x360 lost was 1.9 billion in coparison



prinz_valium said:


maybe that will cut theire profitl. but maybe it will benefit because of the much more sold units

 

frist year x360 lost was 1.9 billion in coparison


the difference is very big between the 360 and the XB1. 

first of all, we dont know just how much the XB1 lost. keep in mind the bulk of XBL subscribers are on teh 360, and the software on the 360 is still selling pretty well. 

second of all, didnt the 360 have a huge loss due to red ring of death? 

and third of all, the 360 was probably losing a lot more money on hardware than the XB1 due to it trying to penetrate the market and break sony's dominance, the XB1 isnt trying to do that (well, wasnt trying to do that)



Ninsect 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.

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

It was 2.9B but is now 5B

Ninsect said:

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

Yes, of course, thank you. It's nothing to panic about.



prinz_valium said:
BeElite said:
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.  


maybe that will cut theire profitl. but maybe it will benefit because of the much more sold units

 

frist year x360 lost was 1.9 billion in coparison

No maybe about it.  There are no extra sales due to the cut, numbers already show that.  

new kless sku failed to motivate sales.  



Around the Network

Well it's pretty clear you have to do some  math to get the clear number for the Xbox.. its pretty spread out when they put first party, Xbox live transactions into another place..

Computing and Gaming Hardware
The principal products and services provided by the Computing and Gaming Hardware segment are: Xbox gaming and entertainment consoles and accessories, second-party and third-party video game royalties, and Xbox Live subscriptions (“Xbox Platform”); Surface devices and accessories; and Microsoft PC accessories.

Devices & Consumer Other
 D&C Other , comprising: Resale, including Windows Store, Xbox Live transactions, and Windows Phone Store; search advertising; display advertising; Office 365 Consumer, comprising Office 365 Home and Office 365 Personal; Studios, comprising first-party video games; our retail stores; and certain other consumer products and services not included in the categories above.



 

Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!) 

We had this before...

"While the Xbox Platform’s revenue increased by $1.7 billion, the cost of said revenue increased by $2.1 billion. Both the differences point at the Xbox One’s launch as their primary cause. That’s a $400 million difference between increase and decreases of gross margins."

The cost of said revenue increased due to a shift from 360 to Xbox One.

You sell a highly profitable product on 2013 (Xbox 360) and then you sell a product with a small profit margin in 2014 (Xbox One). Of course the cost of revenue increases, but it is still a profitable product. Nobody lost 400 million USD here.



Imagine not having GamePass on your console...

BeElite said:

No maybe about it.  There are no extra sales due to the cut, numbers already show that.  

new kless sku failed to motivate sales.  


this guy again...

is there any funtion to block posts from people i dont want to read anymore

 

the kinectless sku is not even out for 2 month and u talk about "numbers already show that"....

u have no idea what ur talking about. u dont even have anything to compare



...



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

Should've gotten here earlier.

silver lining: kowen said he deals with ms on a daily basis confirming what i think we all long suspected,..  kowen is on the take.

- Moderated, Carl