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Forums - Sales Discussion - The Sales Cross Over: It's Real. What are the implications industry wide?

celine on 18 August 2007
FilaBrasileiro said:
@celine

Thanks for the data even though your source links are vague, those numbers do look familiar, I'd never seen the FY07 for Sony, that's some major losses. Does that include Blu Ray royalties?


That include Sony computer enterteinmet profits

Some useful links :


http://www.microsoft.com/msft/earnings/FY05/earn_rel_q3_05.mspx

http://www.sony.net/SonyInfo/IR/financial/fr/

http://investor.ea.com



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omgwtfbbq on 18 August 2007
Final-Fan said:
stranne said:
FilaBrasileiro said:
@stranne

So it's pretty much your personal opinion on the subject, which is cool, but it's not evidence.

Opinions backed up by trends in financials, yes. You can't make predicitions 100% free of opinions.


What is your evidence that the PS3's expensive hardware is, and will remain, more costly than the 360's expensive warranty replacement program?

Unless you can provide this evidence, your previous post is a prediction based purely on opinion and not fact.

[edit: I should have said "your previous post is a prediction predicated purely on opinion and not proven points." Alliteration FTW!]

Because MS ate the cost of the warranty replacement scheme upfront, in order to make the financial report look much better later on.

You'll see the next quarter MS's entertainment division losses will drop considerably from last quarter, and they may even see a proft during the holiday quarter.

 



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Final-Fan on 18 August 2007
omgwtfbbq said:
Final-Fan said:
stranne said:
FilaBrasileiro said:
@stranne

So it's pretty much your personal opinion on the subject, which is cool, but it's not evidence.

Opinions backed up by trends in financials, yes. You can't make predicitions 100% free of opinions.


What is your evidence that the PS3's expensive hardware is, and will remain, more costly than the 360's expensive warranty replacement program?

Unless you can provide this evidence, your previous post is a prediction based purely on opinion and not fact.

[edit: I should have said "your previous post is a prediction predicated purely on opinion and not proven points." Alliteration FTW!]

Because MS ate the cost of the warranty replacement scheme upfront, in order to make the financial report look much better later on.

You'll see the next quarter MS's entertainment division losses will drop considerably from last quarter, and they may even see a proft during the holiday quarter.

 


But 360s are still failing, and that costs money. I may not be right, but I'm not the one asserting a point, and I'm not hearing numbers.

[edit:  My understanding of this is that the upfront cost they paid was to retroactively pay for rebates for the repairs that are now covered by the extended warranty; the current ones are being paid for in the current fiscal period.  Am I wrong?]



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OriGin on 18 August 2007

you are right... pre-paid as such



Viper1 on 18 August 2007

Final-Fan, while the X360 itself may actually be lowering in costs, it doesn't the Home and Devices division that the Zune is another money pit and can easily cancel out any profits made by X360. However, the opposite could also one day be true in that the X360 may still be at a loss while Zune profits (yeah, I know...laughable) which is reported overall as a profitable quarter but since the division doesn't report figures separately so we may never truly know what generates the losses and profits.



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