I love threads like these...give me some good lulz.

I think MS would pick outselling sony rather than not make a profit.

Priceless thread!

The 360 is currently outselling the PS3.

The 360 division is currently posting a profit. The PS3 division is posting a loss - and if it wasn't for the PSP/PS2, a huge loss.

So your argument ends here as being wrong.

great article, love the points, ms sucks, they could not even make a system thet is reliable, today after 3.5 years they still have a 30% fail rate, how about that for a sales stragety, everybody that has a 360 will be on there 4th and 5 th unit, from red ring, this is compared to sonys less then 1 % fail rate, besides 360 processor was sonys first thought, they passed on it to make a real system that will be on the cutting end of technologh for many years to come, despite what ms says about blu ray, that is why they tried to add it to there current 360, and could not, the system they want to release in 2012 has blu ray. how about that, even more money for sony. great job ms its really sad , you can tell they are an american company

1. Xbox360 is outselling the PS3.
2. Xbox360 is profitable. you can't simply look at the numbers of the EAD and come up with stuff like that. The (small) loss was because of R&D for the Zune HD and Windows Mobile PLUS low Mac Office sales. The Xbox360 was NOT the problem, it made its money. Check Microsofts comments on the financial report.
3. The PS3 is the only console on the market that is losing money today.

This thread fails.

It seems that alot of people are prepared to use the EDD profit/loss figures as a surrogate for actual XBOX profitability. Doing so is increadibly missleading. If you look at the latest 10Q filing from Microsoft you can actually get somer sense of the actual XBOX business, this is because they give you deltas as both dollar value and percentage offset.

Entertainment and Devices Division

Nine months ended March 31, 2009 compared with nine months ended March 31, 2008

EDD revenue decreased primarily due to decreased Xbox 360 platform and PC game revenue and included an unfavorable impact from foreign currency exchange rates of $47 million or one percentage point. Xbox 360 platform and PC game revenue decreased $51 million or 1%, primarily as a result of decreased revenue per Xbox 360 console as a result of price reductions during the past 12 months. We shipped 10 million Xbox 360 consoles during the first nine months of fiscal year 2009 compared with 7.5 million Xbox 360 consoles during the first nine months of fiscal year 2008.

EDD operating income decreased primarily due to increased research and development expenses, partially offset by decreased cost of revenue. Research and development expenses increased $317 million or 30%, primarily reflecting increased headcount-related expenses associated with the Windows Mobile device platform, driven by recent acquisitions. Cost of revenue decreased $60 million or 2%, primarily driven by decreased Xbox 360 platform costs.

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The bolded sections are the important ones. Gaming related revenue decreased $51 Million, or 1%. If $50million is one percent then 100 percent is 5Billion. This gives us gaming revenue. Cost of revenue decreased 2% or $60million which gives ua a total cost of revenue for the EDD of $3 billion. A 30% increase in R&D at 317million gives you about $1 Billion before, $1.3Billion after.

So, we have $5 Billion in revenue (gaming alone) with a cost of revenue of $3 Billion and R&D exenses of $1.3 Billion (both for the entire devision) it is very hard to come to the conclusion that the XBOX is losing money.

There is obviosly $2 Billion in expenses missing, $6.5 Billion in revenue, minus $300 Million in profit, minus $4.3 Billion combined cost of revenue plus R&D leaves $2 Billion. There is obviously Administrative costs as well as cost associated with the recent aquisitions that drove up Windows Mobile R&D expeses. Truth be told we can't tell from this report. Perhaps it's $2 Billion dollars worth of money hatting.

To reiterate my point, there is $2 Billion more revenue from gaming then there is cost of revenue for the entire EDD.

^ Does game development pre-release = R+D for that project? Less research and more development anyway.

I guess price cut for XBox 360 means less profit, means less money for exclusive games. So I do not know, why XBox 360 owner so happy with this the price drop.

Bolded is wrong...and you know it.

Like I always say, M$ has infinite resources and does not matter to them if the Xbox franchise will keep forever losing money. Their shareholders - many of them as evil as Bill Gates himself - will still be pleased since they managed to kick off Sony from the play. That's is their real line of thought.

mztazmz, nice flaimbait thread.