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

NinjaKido on 22 January 2009
FreeTalkLive said:
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.

 

 

And to add to that the console market is very dynamic , the marketshare could potentialy change drasticaly in Sony's favour next gen.

$6B to secure 2nd place ? it has little to no influence on futurue generations , the RROD fiasco will likely offset alot of the benefits of MS's investment to the XBOX brand.



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Hammer-of-Dawn on 22 January 2009
seece said:
Hammer-of-Dawn said:
Jackson50 said:
Hammer-of-Dawn said:
Jackson50 said:
Hammer-of-Dawn said:
what was their profit/loss for september-december 09?

My wonky time machine malfunctioned, so I cannot answer that...sorry.

 

 

 oops i meant 08. The topic creator is implying they posted a loss.

 

Oh, 2008...this will have the information you seek

from what i understand the division posted a $150 million loss for the 3 months?

 

no $151 million Profit.

 

sweet.

yet this thread describes going to 6 billion when in fact the numbers going down.

 



Seece on 22 January 2009
Hammer-of-Dawn said:
seece said:
Hammer-of-Dawn said:
Jackson50 said:
Hammer-of-Dawn said:
Jackson50 said:
Hammer-of-Dawn said:
what was their profit/loss for september-december 09?

My wonky time machine malfunctioned, so I cannot answer that...sorry.

 

 

 oops i meant 08. The topic creator is implying they posted a loss.

 

Oh, 2008...this will have the information you seek

from what i understand the division posted a $150 million loss for the 3 months?

 

no $151 million Profit.

 

sweet.

yet this thread describes going to 6 billion when in fact the numbers going down.

 

What? I am aware the numbers are going down ... hence why I said its "nearly below $6B"

EDIT - Oh I see what you mean now, don't be so finicky, most people round here know what I would mean.



 

nordlead on 22 January 2009
halil23 said:
What about 2000 (xbox r&d) & 2001 (xbox launch) loss??

 

FY2002 started July 1, 2001. The XBox R&D may have gone under a different division.




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Seraphic_Sixaxis on 22 January 2009

6B? Wtf?



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NJ5 on 22 January 2009
nordlead said:
halil23 said:
What about 2000 (xbox r&d) & 2001 (xbox launch) loss??

 

FY2002 started July 1, 2001. The XBox R&D may have gone under a different division.

Yeah, Microsoft has a handy "Corporate-level activity" financial reporting section which I'll let Microsoft describe in their own words:

Certain corporate-level activity is not allocated to our segments. Those results include expenses such as broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies.

 



My Mario Kart Wii friend code: 2707-1866-0957

fulcizombie on 25 January 2009
NinjaKido said:
FreeTalkLive said:
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.

 

 

And to add to that the console market is very dynamic , the marketshare could potentialy change drasticaly in Sony's favour next gen.

$6B to secure 2nd place ? it has little to no influence on futurue generations , the RROD fiasco will likely offset alot of the benefits of MS's investment to the XBOX brand.


Wishful thinking . MS has killed the playstation brand in NA and the U.K and has done severe damage in the rest of europe plus it has stolen all the traditional playstation exclusives , not called MGS.

Spectrumglr on 25 January 2009

i think that now MS should be fairly satisfied with its x360...and we should take into account that these numbers are actually worsened by the infamous RROD issue that costed MS 1Billion $



2008 year end sales (made in January 2008):

44.2 M 27.1 M 20.8 M

haxxiy on 25 January 2009

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

Never, they want people thinking they can lower prices forever, while actually they're losing more money on the X360 than Sony on the PS3.

 



 

 

 

 

 

DirtyP2002 on 25 January 2009
haxxiy said:

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

Never, they want people thinking they can lower prices forever, while actually they're losing more money on the X360 than Sony on the PS3.

 

 

Sony lost something like 6-7 billion USD with the PS3.

Division reported a 4 billion loss since the release of the PS3 in 2006. The PS2 and the PSP were already profitable at this time. So you have 4 billion + the profit of the PS2 and the PSP for 3 years. A careful estimate would be like 1-2 billion. And of course the R+D costs for the PS3, which will be pretty big, because pf BluRay and the Cell. At least another 1.5 billion. There you go. 4 + 1.5 + 1.5 = 7 billion LOSS created by the PS3.

 The Xbox360 is generating a profit right now. (A pretty big one, because it covers the losses of the Zune and there is still a 151 million profit for the past 3 months.)

So the the Xbox360 is on a good way to be profitable and get some of the losses made by the original Xbox back.

Just accept, the PS3 is a financial disaster for Sony and the Xbox360 is a great improvement for MS. The Wii is a money-printer. That is the current situation. No Spin allowed.

 



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