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Forums - Microsoft - MSFT Q1 2015 Results: $23bn rev, $5.8bn profit and 2.4m Xbox shipped. Analystst estimates easily beaten.

 

Xbox ONE shipments

<0.5m 25 9.26%
 
0.5m to 0.75m 16 5.93%
 
0.75m to 1m 20 7.41%
 
1m to 1.25m 26 9.63%
 
1.25m to 1.5m 15 5.56%
 
1.5m to 1.75m 20 7.41%
 
1.75m to 2.0m 19 7.04%
 
2.0m+ 66 24.44%
 
see results 63 23.33%
 
Total:270
ethomaz on 24 October 2014
thx1139 said:
Why do people think that due to a greater increase in the cost of revenue then the platform revenue increased that the Xbox portion of MS business lost money. You cant just that. Lets put it in a way people can understand, You own a lemonade stand and your old flavor which you sell for $1 per glass is now kind of old and people starting to move on. That lemonade costs you 10 cents per glass to make. You still sell 100 glasses in a day. You introduce a new flavor and because of the new not mass produced ingredients you charge $2 per glass for this new lemonade. For now this lemonade costs $1 per glass just to make. So see how your cost of revenue increased, but you still profited.

The moral of the story is you cant determine profitability or loss solely on cost of revenue increasing more then revenue increasing. You need total expenses and total revenue to determine profitability.

From the report
Computing and Gaming Hardware Revenue $2.45 Billion (Surface Revenue was $908 million)
Computing and Gaming Hardware Gross Margin $479 Million (That is a profit)

Game Software is in another Segment
Devices and Consumer Other Revenue $1.809 Billion
Devices and Consumer Gross Margin $312 Million (That is a profit)

Gross Margin is not profit.

Gross Margin doesn't account for several expenses (selling, administrative, etc) who makes part of the profit.

PS. It is the same "error" I did in the PS thread with my Division charts... I just used it because there is no other info... and some guys get mad due that fact.



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thx1139 on 24 October 2014
ethomaz said:
thx1139 said:
Why do people think that due to a greater increase in the cost of revenue then the platform revenue increased that the Xbox portion of MS business lost money. You cant just that. Lets put it in a way people can understand, You own a lemonade stand and your old flavor which you sell for $1 per glass is now kind of old and people starting to move on. That lemonade costs you 10 cents per glass to make. You still sell 100 glasses in a day. You introduce a new flavor and because of the new not mass produced ingredients you charge $2 per glass for this new lemonade. For now this lemonade costs $1 per glass just to make. So see how your cost of revenue increased, but you still profited.

The moral of the story is you cant determine profitability or loss solely on cost of revenue increasing more then revenue increasing. You need total expenses and total revenue to determine profitability.

From the report
Computing and Gaming Hardware Revenue $2.45 Billion (Surface Revenue was $908 million)
Computing and Gaming Hardware Gross Margin $479 Million (That is a profit)

Game Software is in another Segment
Devices and Consumer Other Revenue $1.809 Billion
Devices and Consumer Gross Margin $312 Million (That is a profit)

Gross Margin is not profit.

Gross Margin doesn't account for several expenses (selling, administrative, etc) who makes part of the profit.

PS. It is the same "error" I did in the PS thread with my Division charts... I just used it because there is no other info... and some guys get mad due that fact.

Gross Margin is the closest we will have to an individual unit if the business profit. After all it is one company with several organizational segments. Not several companies.

Administrative and Sales functions directly related to those segments are indeed included in those number.  There are some things that cover the whole company and for those I present you this information from the Quarterly Report. These are shared across all segments.

And FYI here it is

Revenue

Corporate and Other -$43 million

Gross Margin

Corporate and Other -$64 million



Its libraries that sell systems not a single game.

Farsala on 25 October 2014

Somehow missed this.

XB1 definitely did better this quarter then Titanfall Quarter imo. Destiny, Madden bundle and UK deals> Titanfall+ mandatory $500 XB1. They had to tone down production last quarter only to ramp back up this quarter.

With this in mind imo. .6m 360 shipped 1.8m XB1 shipped. XB1 undertracked.



chocoloco on 25 October 2014

These threads are hardly about the xbox at all.



TheWPCTraveler on 25 October 2014
chocoloco said:
These threads are hardly about the xbox at all.

Section: Microsoft Discussion

You know, at this point, it's getting more and more likely that Windows Phone overtakes iOS in 2015, for at least one quarter.



 
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DeletedAccount3 on 25 October 2014

User Requested removal



Mummelmann on 25 October 2014

1.8 million One's shipped for Q3, I guessed 1.9. It has to be undertracked by a pretty fair amount; it is not unreasonable to think it would have sold through close to all the stock with a fantastic September.
The One might actually beat the Wii U this year, and even if it doesn't; it won't be far off.



TheWPCTraveler on 25 October 2014
LurkerJ said:
TheWPCTraveler said:

Section: Microsoft Discussion

You know, at this point, it's getting more and more likely that Windows Phone overtakes iOS in 2015, for at least one quarter.

Lowest selling quarter for iPhone in the past 4 quarters = 35 millions iPhones. You think Windows phones can top that? 

A rule of thumb when it comes to Windows Phone sales is that Lumia sales typically take up 80% of the total. That'll leave us with slightly more than 11 million this quarter. This is before the 530, 730, and 830 get full rollouts worldwide. I expect next quarter to hold up at least 12-13 million Lumia sales. And, this is with a lineup largely seen as subpar (cue x30 lineup), or old (x20 lineup).

The thing is that I actually expect iPhone sales to dip below 30 million in at least one quarter next year as saturation takes full effect.



 
I WON A BET AGAINST AZUREN! WOOOOOOOOOOAAAAAAAAHHHHHHHHHHHHHHHHHHH

:3

DeletedAccount3 on 25 October 2014

User Requested removal



prinz_valium on 26 October 2014

wtf im 100k off by my numbers. soooo bad
next quarter we will see 5.5 - 7m shipped xbox consoles.

still wired that there should be 1.5m xbox one on shelfs according to chartz, while wiiu does not even has 100k


on the gross margin =/= Profit
thats not true.

gross margin =/= net profits
but gross margin = operating profits before interest, taxes, depreciation and amortization

just not Company wide