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

Ninsect on 08 August 2014
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

Reposting for emphasis, since most seem to ignore it. 

I reiterate:

Revenue:  6.7B (increase of 1.7B from 5B)

Cost of revenue: 5B (increase of 2.1B from 2.9B)

This doesn't really tell us that One lost 400M. Could be many things.



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NiKKoM on 08 August 2014
kitler53 said:
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.

Maybe he has a windows pc and we know he has a windows phone.. I myself exclusively deal with Apple..



 

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

BeElite on 08 August 2014
prinz_valium said:
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


Amazon numbers, ndp and even VGC show the new sku had little effect thats a fact.  Your opinion is nothing comapred to that.   Fundemnetally its just less product for less price, its no surprise to most it didnt do anything.  All it did is kill a massive investment on their part and end any potential kinect had for this gen.  

 And its on you to actually post anythign or worth.  Its your choice to read and or respond, or even post at all. 



Puppyroach on 08 August 2014

I think the XBox brand has been absolutely essential for MS to keep customers eyes fixed on MS as a brand. Remember, over 80million enjoys this gaming consoles and are subject to MS marketing. That is VERY potent market!

Also, those numbers, if true, says nothing about the division at all.



roivas2 on 08 August 2014
Ninsect said:
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

Reposting for emphasis, since most seem to ignore it. 

I reiterate:

Revenue:  6.7B (increase of 1.7B from 5B)

Cost of revenue: 5B (increase of 2.1B from 2.9B)

This doesn't really tell us that One lost 400M. Could be many things.


Could tell us that the One actually lost more than 400M since selling 360 consoles is profitable.



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DirtyP2002 on 08 August 2014
roivas2 said:
Ninsect said:
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

Reposting for emphasis, since most seem to ignore it. 

I reiterate:

Revenue:  6.7B (increase of 1.7B from 5B)

Cost of revenue: 5B (increase of 2.1B from 2.9B)

This doesn't really tell us that One lost 400M. Could be many things.


Could tell us that the One actually lost more than 400M since selling 360 consoles is profitable.

care to explain how?



Imagine not having GamePass on your console...

GribbleGrunger on 08 August 2014

I'm just going to go ahead and assume this is bad more MS. It makes me feel so much better ...



 

The PS5 Exists. 


MoHasanie on 08 August 2014

I'm sure this was posted before...
Anyways, its not good at all. The playstation division is making money already whist the Xbox division is losing a lot of money.



    

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Landguy on 08 August 2014
maverick40 said:
czecherychestnut said:
oldschoolfool said:
So,what does that all basically mean?


It means MS spent $2.1 billion to make $1.7 billion in revenue from Xbox, meaning that they lost $400 million last FY13/14 from the Xbox platform (XB1 and X360). Now given that X360 would be profitable during that period, the loss must come from the XB1, so in essense the loss due to XB1 is $400 million plus whatever profit X360 brought in during that period.

Exactly, basically unhappy shareholders are still unhappy with Xbox. Although, that hasn't changed since the original Xbox launched. 

You are both wrong.

You have compared to time periods with different totals of sales and jumped to a wrong conclusion.  The  # of $1.7b is only the difference from the previous year, not the total of sales from the XB1.  The 360 sold a lot less, thus generating less revenue.  Becasue you only have half the number, you can't even come to that conclusion.  Also, even the $2.1b # is reflective of cost from other things, but it is "Mainly" due to XB1 (system launch costs?).  YOu grabbed 2 #'s and compared them without have 2-3 other #s that are actually needed( like the amount of revenue decrease from the 360).



It is near the end of the end....

Neodegenerate on 08 August 2014

Anyone who expects a console to turn a profit in its first year doesn't have a firm understanding of what goes into releasing a new product. The goal in year one isn't maximize profits, it's mitigate loss.