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Forums - Microsoft - Total Loss from Microsoft's E&D Division is nearly below $6B

Esa-Petteri on 22 January 2009
Kyros said:

contains a lot of non-XBox products


The zune and the zune and the zune and did I forget anything? Game controllers perhaps but they should be very profitable. (Just looked it up apparently Windows Mobile is also in there although I find that a bit weird and some smaller things like MSN TV never heard about it though)

Don't forget about teh surface!

http://www.microsoft.com/surface/index.html



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FreeTalkLive on 22 January 2009
Zassk said:
It's not a loss, it's an investment. $6B is a small price to pay to break Sony's monopoly in the console segment.

Except that Sony never had a monopoly on the console segment (or anything close to it) and Nintendo was the company which took leadership back from Sony.

 



 

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Dianko on 22 January 2009
Kyros said:

contains a lot of non-XBox products


The zune and the zune and the zune and did I forget anything? Game controllers perhaps but they should be very profitable. (Just looked it up apparently Windows Mobile is also in there although I find that a bit weird and some smaller things like MSN TV never heard about it though)

 

The E&D Division is composed of five main businesses:

1. the Interactive Entertainment Business, home to the Xbox and Games for Windows gaming platforms.

2. the Mobile Communications Business, which develops and markets Windows Mobile software, services and applications

3. the Music Business, developers of Zune portable entertainment devices and services

4. the Connected TV Business, which includes Microsoft Mediaroom and Windows Media Center; and the Specialized Devices and Applications Business, which includes the Hardware Group, Microsoft Surface, Office for Mac,

5.Microsoft Auto and Windows Embedded software.

from a poster at GAF.

Keep in mind R&D costs, production and marketing of new products (such as the Xbox and the Zune) are very expensive. And if they are failing (e.g. the Zune), it's very expensive.



nordlead on 22 January 2009

hey, the last 2 years combined made up for 2002. At this rate, they will have actually made some money by 2019




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Skeeuk on 22 January 2009

do you think microsoft will ever announce what exactly xbox gaming division makes?



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fulcizombie on 22 January 2009

Who the fuck cares about losses from the .........xbox1 ?? The 360 has turned the tide and will be profitable for a very long time . 339 million net profit for q1+q2 for this fiscal year ....not bad at all.



dbot on 22 January 2009

This kind of a tough chart to follow. The EDD division began in 2006? In your chart the profit/losses prior to 2006 are specific to the xbox, but 2006 onward MS mixed the xbox with Microsoft Games, Retail Office, Retail Windows XP, Retail Vista, and Zune. I believe 2007 included the 1.2 billion dollar warranty charge, but it is not surprising that the xbox became profitable after it was included with the other products.



Thanks for the input, Jeff.

 

 

Bitmap Frogs on 22 January 2009
dbot said:
This kind of a tough chart to follow. The EDD division began in 2006? In your chart the profit/losses prior to 2006 are specific to the xbox, but 2006 onward MS mixed the xbox with Microsoft Games, Retail Office, Retail Windows XP, Retail Vista, and Zune. I believe 2007 included the 1.2 billion dollar warranty charge, but it is not surprising that the xbox became profitable after it was included with the other products.

 

Wut? Link?

As far as I know all they did was unify their representant structure so retailers would just have to meet with one MS guy, not four. Everything still gets assigned to the proper division.

 





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coolestguyever on 22 January 2009

well they're making money now so thats good



NJ5 on 22 January 2009
Skeeuk said:
do you think microsoft will ever announce what exactly xbox gaming division makes?

Not in the near future if ever. They don't have much of a reason to do it differently (not that I know of at least).

Even if they did, we wouldn't get the past data adjusted for xbox only.

 



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