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Forums - Gaming Discussion - Prediction: Microsoft to become largest 3rd party publisher.

KLXVER said:
gtotheunit91 said:

Corporate BS talk? This is financial information they provided directly to the FTC you can call BS all you want, but numbers don't lie. If you want to ignore every piece of financial information that a publicly traded company provides during legal proceedings, that's your prerogative. 

You screaming "they're losing money because I think so!" doesn't change anything. 

Yeah, its like a guy with a million dollar debt bragging about making 100 dollars. Great job...

You do know that $70 billion MS spent on ABK was money they had just sitting in the bank right? Not tied to any revenue or profit margins. This was an all cash transaction. Get a hold of how financials work in major businesses when it comes to asset ownership. 

There was no loss or debt incurred on MS's end with this deal. This was a direct investment for long term revenue and profits going forward. And for the revenue Xbox brings in, last year being a record setting one, they still brought in a profit. Now expect that to go dramatically higher. 

MS is literally in a no-lose scenario. Either way, they're getting money whether from recurring monthly GP subs or outright purchases whether on console or PC. And the revenue and profits are proving that. 



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KLXVER said:
Goatseye said:

It’s mind blowing that chronic forum dwellers, have so little grasp on the video game market discussed on this platform. Xbox is second in revenue in terms of revenue from platform holders, in front of Nintendo, even though the latter sells more consoles.
Xbox have better profit margin than PlayStation, even though Sony brings in more revenue, only to be superseded by Nintendo.
It seems like we’re still in 2013.

https://gameranx.com/updates/id/476524/article/xboxs-data-suggests-they-might-have-a-better-profit-margin-than-playstation/#:~:text=For%20the%20first%20nine%20months%20of%20FY2022%2C%20which,in%20comparison%20to%20their%20competitors%2C%20PlayStation%2C%20and%20Nintendo.

Doesnt matter when they spend 60+ billion to buy a company. They are not making a profit. They spend more than they make. Easy as that.

This isn't how transactions work, at all, Lol. A lot of people have the misunderstood notion that to make a profit, a company needs to make back any money its spent on acquisitions. Phil even had to explain this to FTC's lawyer in court to which he embarrassingly ended his line of questioning after speaking to his council.

Microsoft is using $69bn to acquire a company, they're paying that all in cash, in effect, ABK to them is worth $69bn and they're turning $69bn in cash to $69bn in assets, ABK being the asset. In addition, they acquired ABK in a time where interest rates were shit, if ABK can pull in similar (or more) money than interest on cash sitting in a bank whilst at the same time boosting other portions of a their business, then they will be happy with that.

It's more preferable that if a business opportunity presents itself, and the company can afford it, that they use their massive cash hordes rather than having them sit away in the bank doing nothing except accumulating interest. Microsoft acquiring ABK doesn't put the Xbox division at a -$69bn profit, Lol. It isn't accounted for in the profit at all.

There is no doubt about it now, the Xbox division does profit as of today, Phil confirmed this during the FTC trial, in front of the Judge, whilst on oath, that Microsoft Gaming pulls in single digit profits (billions) on a $15bn+ per year revenue. If Microsoft Gaming wasn't profiting then Satya would have gutted it already as he's more cut-throat than previous CEOs.



gtotheunit91 said:
KLXVER said:

Yeah, its like a guy with a million dollar debt bragging about making 100 dollars. Great job...

You do know that $70 billion MS spent on ABK was money they had just sitting in the bank right not tied to any revenue or profit margins? This was an all cash transaction. Get a hold of how financials work in major businesses when it comes to assets. 

There was no loss or debt incurred on MS's end with this deal. This was a direct investment for long term revenue and profits going forward. And for the revenue Xbox brings in, last year being a record setting one, they still brought in a profit. Now expect that to go dramatically higher. 

MS is literally in a no-lose scenario. Either way, they're getting money whether from recurring monthly GP subs or outright purchases whether on console or PC. And the revenue and profits are proving that. 

This is just insane. So the 60 Billion dollars they spent doesnt count because they paid in cash? Are you even thinking before typing?



Ryuu96 said:
KLXVER said:

Doesnt matter when they spend 60+ billion to buy a company. They are not making a profit. They spend more than they make. Easy as that.

This isn't how transactions work, at all, Lol. A lot of people have the misunderstood notion that to make a profit, a company needs to make back any money its spent on acquisitions. Phil even had to explain this to FTC's lawyer in court to which he embarrassingly ended his line of questioning after speaking to his council.

Microsoft is using $69bn to acquire a company, they're paying that all in cash, in effect, ABK to them is worth $69bn and they're turning $69bn in cash to $69bn in assets, ABK being the asset. In addition, they acquired ABK in a time where interest rates were shit, if ABK can pull in similar (or more) money than interest on cash sitting in a bank whilst at the same time boosting other portions of a their business, then they will be happy with that.

It's more preferable that if a business opportunity presents itself, and the company can afford it, that they use their massive cash hordes rather than having them sit away in the bank doing nothing except accumulating interest. Microsoft acquiring ABK doesn't put the Xbox division at a -$69bn profit, Lol. It isn't accounted for in the profit at all.

There is no doubt about it now, the Xbox division does profit as of today, Phil confirmed this during the FTC trial, in front of the Judge, whilst on oath, that Microsoft Gaming pulls in single digit profits (billions) on a $15bn+ per year revenue. If Microsoft Gaming wasn't profiting then Satya would have gutted it already as he's more cut-throat than previous CEOs.

As I said its corporate BS talk. MS are Billions down. Nintendo and Sony actually makes money. Spin it any way you want.



KLXVER said:
gtotheunit91 said:

You probably should have read the link before making this comment. In short, Xbox was still in the profit margin even in their worst first party output year being 2022. 

Corporate BS talk. You should know better by now. How the hell would they make that kinda money after buying like 10 studios? Ridiculous...

It's not corporate BS talk, it's basic business finance, economics, in relation to Mergers and Acquisitions.

KLXVER said:
gtotheunit91 said:

Corporate BS talk? This is financial information they provided directly to the FTC you can call BS all you want, but numbers don't lie. If you want to ignore every piece of financial information that a publicly traded company provides during legal proceedings, that's your prerogative. 

You screaming "they're losing money because I think so!" doesn't change anything. 

Yeah, its like a guy with a million dollar debt bragging about making 100 dollars. Great job...

They aren't taking on any debt, Lol. Except Activision-Blizzard's debt...Which is $3.6bn (but Activision-Blizzard has over $10bn in hard cash in their bank too, Lol).

Microsoft is using pure cash for the transactions because they had $100bn sitting in the bank doing f*ck all, Lol. They aren't borrowing for this, they aren't financing it any other way than their own pure cash.

$69bn in cash is converted into $69bn in assets.

Again, Phil literally explained this to FTC's lawyer, gave him a little economics 101 to which FTC's lawyer had absolutely no rebuttal and after consulting the rest of FTC's team, instantly ended his line of questioning because he didn't know what he was talking about.



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KLXVER said:
Ryuu96 said:

This isn't how transactions work, at all, Lol. A lot of people have the misunderstood notion that to make a profit, a company needs to make back any money its spent on acquisitions. Phil even had to explain this to FTC's lawyer in court to which he embarrassingly ended his line of questioning after speaking to his council.

Microsoft is using $69bn to acquire a company, they're paying that all in cash, in effect, ABK to them is worth $69bn and they're turning $69bn in cash to $69bn in assets, ABK being the asset. In addition, they acquired ABK in a time where interest rates were shit, if ABK can pull in similar (or more) money than interest on cash sitting in a bank whilst at the same time boosting other portions of a their business, then they will be happy with that.

It's more preferable that if a business opportunity presents itself, and the company can afford it, that they use their massive cash hordes rather than having them sit away in the bank doing nothing except accumulating interest. Microsoft acquiring ABK doesn't put the Xbox division at a -$69bn profit, Lol. It isn't accounted for in the profit at all.

There is no doubt about it now, the Xbox division does profit as of today, Phil confirmed this during the FTC trial, in front of the Judge, whilst on oath, that Microsoft Gaming pulls in single digit profits (billions) on a $15bn+ per year revenue. If Microsoft Gaming wasn't profiting then Satya would have gutted it already as he's more cut-throat than previous CEOs.

As I said its corporate BS talk. MS are Billions down. Nintendo and Sony actually makes money. Spin it any way you want.

No, you just don't understand business economics, Lol.



KLXVER said:
gtotheunit91 said:

You do know that $70 billion MS spent on ABK was money they had just sitting in the bank right not tied to any revenue or profit margins? This was an all cash transaction. Get a hold of how financials work in major businesses when it comes to assets. 

There was no loss or debt incurred on MS's end with this deal. This was a direct investment for long term revenue and profits going forward. And for the revenue Xbox brings in, last year being a record setting one, they still brought in a profit. Now expect that to go dramatically higher. 

MS is literally in a no-lose scenario. Either way, they're getting money whether from recurring monthly GP subs or outright purchases whether on console or PC. And the revenue and profits are proving that. 

This is just insane. So the 60 Billion dollars they spent doesnt count because they paid in cash? Are you even thinking before typing?

Dude……please familiarize yourself with business transactions and asset ownership lol

It’s whatever either way. 



Ryuu96 said:
KLXVER said:

As I said its corporate BS talk. MS are Billions down. Nintendo and Sony actually makes money. Spin it any way you want.

No, you just don't understand business economics, Lol.

I understand basic math. If I buy a big diamond, then yes, I own something worth millions of dollars. But if nobody buys it from me I just have a big useless paperweight. 

Its not that difficult. Assets means fuck all if you cant sell it. They have spent way more than they have ever made back.

Im sure MS will make their money back at some point, but we are talking years and years. 

Its really easy, but whats the point of arguing with someone who just insults you. Take care.



KLXVER said:
Ryuu96 said:

This isn't how transactions work, at all, Lol. A lot of people have the misunderstood notion that to make a profit, a company needs to make back any money its spent on acquisitions. Phil even had to explain this to FTC's lawyer in court to which he embarrassingly ended his line of questioning after speaking to his council.

Microsoft is using $69bn to acquire a company, they're paying that all in cash, in effect, ABK to them is worth $69bn and they're turning $69bn in cash to $69bn in assets, ABK being the asset. In addition, they acquired ABK in a time where interest rates were shit, if ABK can pull in similar (or more) money than interest on cash sitting in a bank whilst at the same time boosting other portions of a their business, then they will be happy with that.

It's more preferable that if a business opportunity presents itself, and the company can afford it, that they use their massive cash hordes rather than having them sit away in the bank doing nothing except accumulating interest. Microsoft acquiring ABK doesn't put the Xbox division at a -$69bn profit, Lol. It isn't accounted for in the profit at all.

There is no doubt about it now, the Xbox division does profit as of today, Phil confirmed this during the FTC trial, in front of the Judge, whilst on oath, that Microsoft Gaming pulls in single digit profits (billions) on a $15bn+ per year revenue. If Microsoft Gaming wasn't profiting then Satya would have gutted it already as he's more cut-throat than previous CEOs.

As I said it’s corporate BS talk. MS are Billions down. Nintendo and Sony actually makes money. Spin it any way you want.

Ok. Non corporate talk.

Last year Microsoft made almost 2 Sony worth in revenue. That’s some serious investment in their gaming division never done before and something Sony been doing for decades for PlayStation.
That $60 billion is worth more now in form of ActiBlizz, than collecting meager interest for them. 🤷🏾‍♂️ 



Goatseye said:
KLXVER said:

As I said it’s corporate BS talk. MS are Billions down. Nintendo and Sony actually makes money. Spin it any way you want.

Ok. Non corporate talk.

Last year Microsoft made almost 2 Sony worth in revenue. That’s some serious investment in their gaming division never done before and something Sony been doing for decades for PlayStation.
That $60 billion is worth more now in form of ActiBlizz, than collecting meager interest for them. 🤷🏾‍♂️ 

Doesnt matter what its worth. Unless MS sells Activision Blizzard for 70 Billion, they havent made any profits from it.

Its that "what a thing is worth in assets" that I dont agree with. By that account every company can say they are doing great since they have assets. THQ had a lot off assets. They failed because not many people bought anything associated with their "assets".

Good thing for MS they are filthy rich and makes money from other "assets".