For MSFT 2007 Annual Report

Revenue: 6,083 (Million) (4,756 - for FY 2006)

Operating Income (Loss): (1,892) (Loss of 1,284 for FY 2006)

XBox Platform and PC Games - Revenue up $650 Million

(Shipped 6.6 Million X360 in 2007, compared to 5.0 Million in FY 2006)

Zune, TV Platform, Consumer Hardware/Software - Revenue Up $539 Million

Windows Embedded, Mobile - Revenue Up $138 Million

FY 2007 already includes $1.06 Billion RROD charge already (as per the annual report).

Quote "EDD operating loss increased primarily due to the $1.06 billion Xbox 360 charge recognized in the fourth quarter of fiscal year 2007 and Zune launch-related expenses" EndQuote

Analysis in the next post.

Good for MS's Gaming Division, gives them fore flexibility. Hopefully Sony can start to turn a profit soon also. They are hurting right now. Profit for any systems gaming division makes it easier on us, (The Gamers). Nintendo is doing freaking awesome!

To strip out the XBox Division Loss/Profit, we need to make certain assumptions on the other main divisions:

Zune, TV Platform, Consumer Hard/Software
and
Windows Embedded and Mobile

Going by their own words, the Zune (due to launch) - LOST money during the year.
I am not familiar at all with Windows Embedded - So I will assume that they just BREAK EVEN.

Again, we can do different assumptions based on scenario analysis if someone has a "BETTER" assumption.

Therefore:

Zune divison - assume loss of $200 Million
Windows Mobile division - assume $0 Million (Break Even)

Continue analysis Next Post...

Therefore, we can attribute the following:

Total Loss = 1,892 Million

Income/Loss without Zune and Windows Mobile (from assumption) = $1,692 Million

If we strip out RROD Charge (1.06 Billion) then:

Loss = 686 Million

Therefore, with the original assumptions, the XBox Platform (including PC Games) lost $686 Million.

We can even break it down more as follows:

Operating Income/Loss:
XBox Console = ??
XBox Games and Development = ??
PC Games = ??
XBox Accessories = ??
XBox Live = ??

You can make certain assumptions - but the total has to be equal to $686 Million Loss - in this example.

WTH is all this? It doesn't make sense at all.

Can you structure your numbers better please.

AS long as the xbox fans get to play their "best game of all time (a la GeOW2)", I'm sure they're happy so who cares?

If you assume that:
XBox Games = making money
PC Games = making money
XBox Accessories = making money
XBox Live = making money

Then:
XBox Console, without taking into account RROD still LOST money in FY 2007 (for July 2006 to Jun 2007)

So in summary, XBox (based on FY2007 info) - has quite a long way to go still.
Even stripping the RROD charge, the actual business is still operating at a loss.

If the Windows Mobile Division is making money (as opposed to breaking even, in this assumption), then the XBox Division is losing even more money.

However, if the Zune division lost more than $200 Million, as per the original assumptions, then the XBox Division lost less money.

Well, I heard Xbox Live will make BILLIONS, so I'm guessing that losses won't be all that bad.

I hope that when posters have some numbers, they go through an analysis, similar to what I have shown, so at least they can defend their "opinions" better.

Theres that word again. You know the one that made your other thread fail.

To strip out the XBox Division Loss/Profit, we need to make certain assumptions on the other main divisions:

 So I will assume that they just BREAK EVEN

Again, we can do different assumptions based on scenario analysis if someone has a "BETTER" assumption

Zune divison - assume loss of $200 Million
Windows Mobile division - assume $0 Million (Break Even)

Therefore, with the original assumptions, the XBox Platform (including PC Games) lost $686 Million

You have to make assumptions when analysing with incomplete information.

If you disagree with the analyis, then come up with your own ASSUMPTIONS or actual numbers then calculate the way I did it. (Ohh you made that one too easy to spot)

WITHOUT assumptions.

Any analysis with incomplete information and assumptions usually raises more questions.

Then hopefully we can dig out / figure out more information as you go along OR make reasonable assumptions (that may be the public consensus) to solidify your analysis