Actually, in terms of stock health, if you make 200 billion in revenue (sales to distributors) but it costs you 199,999,999,999 (only a dollar profit). Your company will not be worth very much.

See, in terms of wall street, corporate health is calculated as profit divided by revenue. The better your profit margins (difference between sales and cost) the better your company will do.

In the market, a company that sells 10m consoles and only makes a dollar on each is worth less than a company that only sells 1,000 consoles, but makes 1k on each.

to be completely clear, even if ms made the exact same amount of money with a "steam box" even if it sold less, if they make a higher profit margin, their stock will go up, which means their value goes up.

Welcome to the world of Nintendo fans.

Thing is, higher revenue goes hand in hand with higher profits... They aren't selling the Xbox One at a loss (they probably had a loss when they unplugged the Kinect) and there is little reason for this revenue not to represent profit, especially with stuff like XBL around (not only is it profitable, but their costs are covered by the Cloud division, so it's revenue only for them)... 

yeap like i dis when Sega pulled the plug on console making... Back then I did some PC gaming though... But today no way I'm building a gaming PC, I don't find it as fun anymore... Zero chance I ever give a penny to Sony, not only I don't like the company, but I never like their console orientation and game line up in general.... Maybe Nintendo with the NX but unless they drastically upgrade their mature content or I get kids I don't have anywhere close to the interest I had back in the days for them... So yeah I'd quit until the next DC or XB like console.

This is not wrong but definitely I oversimplified and not a financial investor stand point but more of an economic analyst one... Which often diverge in conclusion... For a find investor long term equity, brand equity, all sorts of various assets, sometimes dividend, potential branching etc are really big factors at play.. Cold hard revenue vs profit balance is way to generic in finance..

to all, I also strong believe PC gaming is not a solution, the PC industry has been under heavy fire left and right for a while now, I also believe console gaming as we know it is going the same direction... And I strongly feel like MS for once is anticipating this and Sony is betting on their mage to last longer but will fall behind eventually... The key question here is what will control our living rooms in the future and more precisely what will be our Mai entertainment go to devices.. Cloud computing, Onecore win10, continuum are all solution that enables MS to be ultra versatile across devices and will help them adapt on the go... XBox will be their entertainment output for the mass market whatever this will be and probably a cross all devices they can be on...

Then quit gaming, please. If the box and the manufacturer is all you're looking for in your buying decisions, then maybe gaming's not for you. They call it corporate slavery for a reason. That Dreamcast anti-Sony rebellion has been poisoning the game industry for years, and to be honest, would today's gamers even enjoy the types of games that Sega put out then today? There's one thing to enjoy a platform for what it offers, but to stop enjoying your hobby because the plastic box you like isn't around anymore is crazy. Especially when there's so many alternatives still.

Usually the corporation you like isn't making consoles anymore because they consistently made awful choices that got them aced out of the industry.

I'd look for them... But the alternatives so far aren't my type... If MS is out, then I might be as well... 

If X1 was selling like Wii U, I'd entertain the notion Xbox is probably dead.

People were saying this about Nintendo during the Wii era...

Because if all X1 exclusives go to PC then all Xbox users because avid PC gamers. This is what we call out of touch with the average consumer.

On a side note, CoD is on PC (no subscriptions for online play) but its still the most popular game on consoles. That shows the impact of sharing games with PC.