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Forums - Sales - Microsoft made a profit again!

FishyJoe on 24 April 2008

Jeez, the market is really punishing MS and Nintendo for having conservative guidance.



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elnino334 on 24 April 2008
TheBigFatJ said:
elnino334 said:
TheBigFatJ said:

 

But Sony isn't doing Cell/hardware R&D for the PS3 anymore, so it wouldn't make sense to amortize that cost, since they didn't have to charge it back anyhow (it cost as they did it). Microsoft is still repairing tons of Xbox 360s all of the time. And they're still selling Xbox 360s that break/rrod.

The reason they charged it back, specifiically, was so they could start reporting profits to placate investors.

Do you have a link for that statement? rrod has been a non issue for a while though yes you will still have older ones break like some guy posted recently he had a 2 year old 360. MS went on record saying they messed up but that they resolved their issues and that was months ago. Seriously do you have numbers?links? or anything to backup that statement besides pulling it out of your butt? Yes some 360's may break but it should be more in the 3-5% acceptable rate now then it was before. Stop beating a dead horse unless you can come up with solid evidence that it is is still an issue.


I do. Look at the something awful forums "my xbox broked" thread and you'll see a lot of people still reporting failures from falcon consoles.  Right around Christmas time, several people reported that they got forza/marvel bundled consoles that were broken out of the box.  Further, the failure rate for refurbished consoles from Microsoft is insane -- people there report that their console broke, then they're sending it to MS, and they provide a timeline. If their refurb brakes on short order or is broken out of the box, they report that as well. The numbers are absolutely insane, and this is in a very pro-xbox forum.  Yesterday, a local guy was selling his Falcon refurb on Craigslist because he replaced it with a DVD player.  He barely played it, but his falcon (which he got as a Christmas present) got an RROD.

I don't have great satistics, and neither do you.  MS is the only company with great statistics, and all they've been telling us is that the RROD isn't a problem and that the failure rate for the 360 is not out of the ordinary.  Until, of course, they had to announce the 3 year RROD program.


LOL you have no proof basically.  How about ALL the other millions of people not having problems with their 360's?  Want me to tell you their story...  well so far it has been months since a 360 has died for a friend of mine... see i can do stories of 360's running well. 



dbot on 24 April 2008

That's a lot of Zunes. Go MS.



Thanks for the input, Jeff.

 

 

FishyJoe on 24 April 2008

Enough with the RROD stuff already. Stick to the topic.



TheBigFatJ on 24 April 2008
rocketpig said:

That doesn't even make any sense, RocketPig, and you know it. On the face of it, one could point out that the unit they get the money for on April first will go towards units they produce and ship in June, but do not get the money for until July. The point is, they have 3 months worth of produced, shipped and sold consoles, and they're counting three months of sold consoles.

But what they're doing with the repair-cost chargeback is saying, "We have these ongoing costs that we shouldn't have, so we want to show our investors that without those unforseen costs, we'd be making tiny profits."

The costs were foreseen, though.


My point is that the money has been counted against the division. The division took a massive loss in one year as a result.

End of story. That's it. We have no idea why kind of money MS is pumping out today on RRoD costs but we do know that they already took out $1b to offset future costs.

Calling it a paper-profit is completely speculative and very misleading.

And again, I seriously doubt MS took a profit hit like that for investors. That's a silly notion. It was for the taxes.


I'm not arguing that they didn't count those numbers against their division for FY07. In fact, I said so in a previous post. So why do you keep bringing that up as if that's a point of contention? It would be nice, wouldn't it, if that was a point I was contending because I'd be completely wrong.

You're right. We don't know what kind of numbers MS is paying for repairs right now because they swept them into the past. That was their entire plan. Since we have no recourse but to say "MS reported a profit so we have no choice but to assume they profited."

That works out nice, doesn't it?  A division that posted consistent losses for 6 years running suddenly charges back some ongoing costs and then posts 3 profitable quarters in a row.  

6.5 billion to go.... 



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ssj12 on 24 April 2008

ok so when is Sony's being released?



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TheBigFatJ on 24 April 2008
ssj12 said:
ok so when is Sony's being released?

Due by May 14th

[edit] incorrectly said 12th

 http://www.reuters.com/article/marketsNews/idUST22909420080424?pageNumber=1&virtualBrandChannel=0&sp=true

 



FishyJoe on 24 April 2008
ssj12 said:
ok so when is Sony's being released?

Should be May 14.



DMeisterJ on 24 April 2008
ssj12 said:
ok so when is Sony's being released?

May 14

http://www.vgchartz.com/news/news.php?id=1072

rocketpig on 24 April 2008
TheBigFatJ said:
rocketpig said:

That doesn't even make any sense, RocketPig, and you know it. On the face of it, one could point out that the unit they get the money for on April first will go towards units they produce and ship in June, but do not get the money for until July. The point is, they have 3 months worth of produced, shipped and sold consoles, and they're counting three months of sold consoles.

But what they're doing with the repair-cost chargeback is saying, "We have these ongoing costs that we shouldn't have, so we want to show our investors that without those unforseen costs, we'd be making tiny profits."

The costs were foreseen, though.


My point is that the money has been counted against the division. The division took a massive loss in one year as a result.

End of story. That's it. We have no idea why kind of money MS is pumping out today on RRoD costs but we do know that they already took out $1b to offset future costs.

Calling it a paper-profit is completely speculative and very misleading.

And again, I seriously doubt MS took a profit hit like that for investors. That's a silly notion. It was for the taxes.


I'm not arguing that they didn't count those numbers against their division for FY07. In fact, I said so in a previous post. So why do you keep bringing that up as if that's a point of contention? It would be nice, wouldn't it, if that was a point I was contending because I'd be completely wrong.

You're right. We don't know what kind of numbers MS is paying for repairs right now because they swept them into the past. That was their entire plan. Since we have no recourse but to say "MS reported a profit so we have no choice but to assume they profited."

That works out nice, doesn't it? A division that posted consistent losses for 6 years running suddenly charges back some ongoing costs and then posts 3 profitable quarters in a row.

6.5 billion to go....


At the end of the generation, we'll know if the 360 was profitable or not. It's that simple. I don't see the point in bringing up that stupid $1b in RRoD repairs up until that point.




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