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Forums - Microsoft - How much loss MS is expected to take this and next quarter due to pricecut

xman on 17 September 2008

Its ok to not make as much money per console if you can expand your user base and increase game sales then overall net profit jumps even with a price cut



PS3, WII and 360 all great systems depends on what type of console player you are.

Currently playing Call of Duty Modern Warfare 2, Fallout 3, Halo ODST and Dragon Age Origins is next game

Xbox live:mywiferocks

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WiiStation360 on 17 September 2008
Squilliam said:
obieslut said:
mysticD said:
Noobie said:

I was just wandering that these are some massive price cuts across all the configuration... and if i remember correctly last quarter they took a loss when they only cut the price in Europe.. now they are again cutting price across all models and in all region, so don;t u think they r going to take a big hit.? or the RROD repair budget they set aside is no longer going to be available.?

They took a lost last quarter because they bought out a company, do some research before trolling.

 

 

Link or it didnt happen

Actually purchases don't show up as losses on financial statements anyway. Its an aquisition of an asset, not a liability. So no link needed.

Btw - Its uncertain how much the Xbox 360 profited or lost as its stuck in the same division as a lot of loss making endeavors like the Microsoft surface computer initiative which I doubt has much to show for a lot of R+D for example. Nor do I think they are profitably selling/marketing Zunes either.

 

The Entermainemnt and Devices division profits are also boosted by huge sales from MS Office for the Mac.  It is impossible to tell how much money the 360 itself is making (or losing) Microsoft.

 



dbot on 17 September 2008

You can't have it both ways. The EDD division was profitable for 2 quarters and everyone claimed it was from the Xbox. Last quarter the division lost 188 million dollars. The only tangible events last quarter was the European price cut and a one time charge of 24 million for acquisition costs.



Thanks for the input, Jeff.

 

 

xman on 17 September 2008
dbot said:
You can't have it both ways. The EDD division was profitable for 2 quarters and everyone claimed it was from the Xbox. Last quarter the division lost 188 million dollars. The only tangible events last quarter was the European price cut and a one time charge of 24 million for acquisition costs.

 

You got a link showing the EDD made a loss?



PS3, WII and 360 all great systems depends on what type of console player you are.

Currently playing Call of Duty Modern Warfare 2, Fallout 3, Halo ODST and Dragon Age Origins is next game

Xbox live:mywiferocks

Squilliam on 17 September 2008
WiiStation360 said:
Squilliam said:
obieslut said:
mysticD said:
Noobie said:

I was just wandering that these are some massive price cuts across all the configuration... and if i remember correctly last quarter they took a loss when they only cut the price in Europe.. now they are again cutting price across all models and in all region, so don;t u think they r going to take a big hit.? or the RROD repair budget they set aside is no longer going to be available.?

They took a lost last quarter because they bought out a company, do some research before trolling.

 

 

Link or it didnt happen

Actually purchases don't show up as losses on financial statements anyway. Its an aquisition of an asset, not a liability. So no link needed.

Btw - Its uncertain how much the Xbox 360 profited or lost as its stuck in the same division as a lot of loss making endeavors like the Microsoft surface computer initiative which I doubt has much to show for a lot of R+D for example. Nor do I think they are profitably selling/marketing Zunes either.

 

The Entermainemnt and Devices division profits are also boosted by huge sales from MS Office for the Mac.  It is impossible to tell how much money the 360 itself is making (or losing) Microsoft.

 

Unfortunately it looks like the E+D division is just a place where they stick their loss makers (mainly) and I guess theres no other reason for the Office for Mac to be included apart from balancing out the areas which lose money.

 



Tease.

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Bitmap Frogs on 17 September 2008
WiiStation360 said:
Squilliam said:
obieslut said:
mysticD said:
Noobie said:

I was just wandering that these are some massive price cuts across all the configuration... and if i remember correctly last quarter they took a loss when they only cut the price in Europe.. now they are again cutting price across all models and in all region, so don;t u think they r going to take a big hit.? or the RROD repair budget they set aside is no longer going to be available.?

They took a lost last quarter because they bought out a company, do some research before trolling.

 

 

Link or it didnt happen

Actually purchases don't show up as losses on financial statements anyway. Its an aquisition of an asset, not a liability. So no link needed.

Btw - Its uncertain how much the Xbox 360 profited or lost as its stuck in the same division as a lot of loss making endeavors like the Microsoft surface computer initiative which I doubt has much to show for a lot of R+D for example. Nor do I think they are profitably selling/marketing Zunes either.

 

The Entermainemnt and Devices division profits are also boosted by huge sales from MS Office for the Mac.  It is impossible to tell how much money the 360 itself is making (or losing) Microsoft.

 

 

Office for Mac now reports under the Office division, afaik. It's been that way ever since it started racking in money.

 





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

hanafuda on 17 September 2008

How much loss is the 360 Repair Division racking up?

It's a serious question. I'd love to know where they are hiding those costs.



PSN - hanafuda

dbot on 17 September 2008
xman said:
dbot said:
You can't have it both ways. The EDD division was profitable for 2 quarters and everyone claimed it was from the Xbox. Last quarter the division lost 188 million dollars. The only tangible events last quarter was the European price cut and a one time charge of 24 million for acquisition costs.

 

You got a link showing the EDD made a loss?

http://www.gamesindustry.biz/articles/microsoft-entertainment-division-posts-426-million-gain

 

Microsoft released its Q4 and FY 2008 earnings reports today, with the Entertainment and Devices Division reporting a USD 426 million profit over the year.

The division reported Q4 revenue of USD 1.575 billion - up 37 per cent from 2007 - but an overall operating loss of USD 188 million. For the same period of the prior year, the division reported a USD 1.223 billion operating loss.



Thanks for the input, Jeff.