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Forums - Microsoft Discussion - Microsoft FY2016-Q2. Revenue $23.8 bn, Op Income $6.0 bn, Net profit $5.0 bn. Beating expectations AGAIN.

DonFerrari on 30 January 2016
Swordmasterman said:
DonFerrari said:
Mummelmann said:

That's how one can easily see how overpriced Apple products are; look at their insane profit margins on hardware and it becomes clear that customers are paying a whole lot for brand and not really for components.

Anyway, MS has always been a software company first and foremost, and that yields significantly more profits on average, for obvious reasons. I still remember fondly when I had to explain to a member on this very site that the development cost of games is not tied to how many copies you printed (yes, he actually tried to argue that).

Well, the margin on SW is ridiculous as well, but that is because they have very small cost for production.

On the discussion of dev cost. They could at most imply that when you expect a certain bracket of sales you calculate the cost to dev. And the cost to burn, print, package and distribute but they are very small.

The biggest costs are the Retailer's margin, is really a lot, is like paying the Tax for Sony, or Microsoft, and pay another Tax, for the Retailer, even more expensive than what they gave to Sony, or Microsoft.

Probably. Always thought all SW are too expensive by what they offer. Worse yet are professional ones. It seems like they don't charge by what they offer but by how much you end up profiting in you profession. Office was expensive but now at least home edition is ok. Adobe PS was ridiculously expensive but at least now home edition is ok. Autocad I don't know home edition but professional was completely unreal.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Around the Network
Zappykins on 02 February 2016
DonFerrari said:
Zappykins said:

Doom! Doom! Yes, I say DOOM!!

Although, if they keep making all this money it's going to be hard to burn through that $100 billion cash they have sitting around.

Good job Microsoft.

Haven't Nintendo patented doom claims? You'll be sued

Ah, yes,  probably,  but a patented communication so I'm good.

But you all owe me money!  Ha ha ha

But seems like people here aren't good at math.  Microsoft as spent over a Billion dollars per year on research.  No so much 'easy high margin products.' lol

Samsung is the one of the few major companies that comes close to the R&D cost investments.



 

Really not sure I see any point of Consol over PC's since Kinect, Wii and other alternative ways to play have been abandoned. 

Top 50 'most fun' game list coming soon!

 

Tell me a funny joke!
LurkerJ on 02 February 2016
Zappykins said:
DonFerrari said:
Zappykins said:
 

Doom! Doom! Yes, I say DOOM!!

Although, if they keep making all this money it's going to be hard to burn through that $100 billion cash they have sitting around.

Good job Microsoft.

Haven't Nintendo patented doom claims? You'll be sued

Ah, yes,  probably,  but a patented communication so I'm good.

But you all owe me money!  Ha ha ha

But seems like people here aren't good at math.  Microsoft as spent over a Billion dollars per year on research.  No so much 'easy high margin products.' lol

Samsung is the one of the few major companies that comes close to the R&D cost investments.

 

"Aren't good at math" then you go and make a mistake yourself?

MS probably spent 12 Billion dollars on R&D in 2015. 



LurkerJ on 02 February 2016
Mummelmann said:
Teeqoz said:

 

Microsoft is in businesses with way higher margin (software), while Sony is primarily in businesses with lower margins (hardware). Apple is basically the only hardware/electronics company that manages to maintain a very high operating margin.

It also obviously doesn't help that a lot of Sony's divisions have performed weakly, but in general, software has higher operating margins than hardware.

That's how one can easily see how overpriced Apple products are; look at their insane profit margins on hardware and it becomes clear that customers are paying a whole lot for brand and not really for components.

Apple hardware comes paired with their software, but who is counting?

The point Teeqoz is making applies to Apple too.



DonFerrari on 02 February 2016
Zappykins said:
DonFerrari said:
Zappykins said:

Doom! Doom! Yes, I say DOOM!!

Although, if they keep making all this money it's going to be hard to burn through that $100 billion cash they have sitting around.

Good job Microsoft.

Haven't Nintendo patented doom claims? You'll be sued

Ah, yes,  probably,  but a patented communication so I'm good.

But you all owe me money!  Ha ha ha

But seems like people here aren't good at math.  Microsoft as spent over a Billion dollars per year on research.  No so much 'easy high margin products.' lol

Samsung is the one of the few major companies that comes close to the R&D cost investments.

 

You'll have to find my pigbank if you want my money.

Doesn't matter much how much you invest on R&D or marketing, the discussion is that the profit margin are very very high. I don't like it, and don't buy, but if people want to, I see no problem with they expending their money as they want and a company picking that money. But mine they only get when the price is right for me.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

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GameAnalyser on 02 February 2016

Kowenicki strikes back.



GameAnalyser on 02 February 2016
Sixteenvolt420 said:
It'd be nice if MS would ever let us know, how many X1's have been sold to consumers, instead of this guessing game.

Would you be surprised to know that the last official reveal from MSFT was a little before the console's first anniversary of 10 million sold and then the actual numbers remained in secret to date? This is most certainly arrogance as well in one way as they have decided to use Xbox LIVE userhip as a metric for stats. Ofcourse in the VGI, often masking statistics is one strategy.



Sixteenvolt420 on 02 February 2016
GameAnalyser said:
Sixteenvolt420 said:
It'd be nice if MS would ever let us know, how many X1's have been sold to consumers, instead of this guessing game.

Would you be surprised to know that the last official reveal from MSFT was a little before the console's first anniversary of 10 million sold and then the actual numbers remained in secret to date? This is most certainly arrogance as well in one way as they have decided to use Xbox LIVE userhip as a metric for stats. Ofcourse in the VGI, often masking statistics is one strategy.

I'm not surprised. It seems they have created all kinds of otherwise pointless stats to give us, so that they don't have to reveal sales numbers.



peter.peter on 04 February 2016
Lawlight said:
So, how is the gaming division doing?

 holiday quarter:                             

•  Gaming revenue increased $192 million or 5%, primarily due to higher revenue from Xbox Live and video games, offset in part by lower Xbox hardware revenue. Xbox Live revenue increased 24%, driven by both higher volumes of transactions and higher revenue per transaction. Video games revenue grew 47%, driven by the Halo 5 launch in October 2015 and sales of Minecraft. We acquired Mojang AB, the Swedish video game developer of the Minecraft gaming franchise, in November 2014. Xbox hardware revenue decreased 9%, mainly due to a decline in Xbox 360 console volume. Xbox One revenue decreased slightly, due to higher console volume, offset by lower prices of consoles sold. 

total Gaming revenue ~$4 billion
Live revenue up 24%
Video games revenue up 47%
Xbox hardware revenue down 9%
Xbox One hardware volume up

second half 2015

•  Gaming revenue increased $221 million or 4%, as growth in revenue from Xbox Live and video games was offset in part by lower Xbox hardware revenue. Xbox Live revenue increased 21%, driven by both higher volumes of transactions and higher revenue per transaction. Video games revenue grew 52%, driven by sales of Minecraft and the launch of Halo 5. Xbox hardware revenue decreased 11%, mainly due to a decline in Xbox 360 console volume. Xbox One revenue decreased, due to higher console volume, offset by lower prices of consoles sold. 

  total Gaming revenue ~ $5.75 billion
Live revenue up 21%
Video games revenue up 52%
Xbox hardware revenue down 11%
Xbox One hardware volume up

 

LurkerJ said:

that comes close to the R&D cost investments.

 

"Aren't good at math" then you go and make a mistake yourself?

MS probably spent 12 Billion dollars on R&D in 2015. 

MS spent $2.9 billion on R&D last quarter
MS spent $5.85 billion on R&D second half 2015
MS spent $11.95 billion on R&D calendar year 2015
MS spent $12.05 billion on R&D fiscal year 2015



LurkerJ on 16 February 2016
LurkerJ said:
UshiotheOmega said:
Damn Microsoft should just shut down their phone division selling less in the holiday quarter than the one before that is awful.

2015 - 3rd quarter (Microsoft 2016 1st quarter) - 5.8 million Lumia's and 25.5 million dumb phones.

2015 - 4th quarter (Microsoft 2016 2nd quarter) - 4.5 million Lumia's and 22.5 million dumb phones.

Should come as no surprise. The low-end market was a ray of hope that quickly vanished as chinese manufacturers adopted Android. The new premium Lumias come with unfinished software, Windows 10 mobile was delayed etc. But the good news is the Windows App store will potentially receive more/better app support, despite lagging smartphone sales, as hybird Windows tablets rise in popularity. It will potentially become a viable option for smartphone buyers by then. If not... who cares? MS is pushing its services to all devices and its paying off. 

"Microsoft now has 74 partners preloading Office Mobile, OneNote, and more on Android devices"

I find this hilarious. What's next? Android to ship with Bing and Cortana as default apps?

Google has so little control over Android and MS is taking full of advantage.