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Forums - Sales Discussion - Microsoft Entertainment Posts $130 million Loss in Q4 2009 : is the 360 in trouble ?

jcp234 on 23 July 2009

Yeah, but some would love to spin the circumstances to give the impression that somehow Microsoft is doomed.

It's a good thing there are a few of us around to challenge the ignorance.



I'm not a fanboy, I just try to tip the balance in favor of logic and common sense.

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Squilliam on 23 July 2009
thx1139 said:

Read the detailed report about the EDD division. It is clear the 360 is profitable.

Some numbers from it.

Loss was $130M

100K less 360 consoles shipped compared to last year in same qtr.

non-gaming revenue decreased by $291M compared to a year ago. Again that is non-gaming.

360 platform and PC game software revenue decreased by $110M. 100K consoles would be around $20M of that revenue.

Cost of sales (product production costs) declined $266M compared to a year ago. Primarily due to declines in 360 production costs (part of that would be the 100K fewer consoles sold).

This is the first time I have noticed them call out non-gaming revenue.  I believe this is because they want analyst to understand the 360 is the profit making part of that division. Zune is losing money but investing heavily with ZuneHD. Mobile platform is being hammered by the iPhone and is investing heavily so as not to disapear from the market.

Thats pretty much what I would have said, had you not said it first.

 



Tease.

Halo_Reach on 23 July 2009
mario64 said:
Which monopolies ? Linux is everywhere at least in companies, Firefox and Safari gain shares every day, personal PC market is struggling.

Those 'monopolies' are dying...


so you basically are one of those haters that hate on microsoft- and downplay anything positeve about the company and blow everything bad out of propotion? get a life



http://i959.photobucket.com/albums/ae80/Gamespot_Hobbsey07/1245587468_spinning-baseball-bat.gif

Squilliam on 23 July 2009

^ How can you blow Linux out of proportion? Its barely a proportion to begin with!



Tease.

crumas2 on 23 July 2009
mario64 said:
MSFT stock is already down sharply actually (7%) in after hours market. Analysts are slaughtering it.

But yes, the xbox 360 is a minor business for MS, they could stop it any day if they need money.

The problem they have is their core business doesn't work well anymore either.

- Windows Vista failed and people don't want to 'upgrade' to Windows 7 either... The PC market is in deep recession, it doesn't help.
- Office looses market share to Open Office (even my state owned company replaced Office by Open Office...)
- Zune is losing to Ipod
- Internet Explorer is killed by Firefox and Safari month after month.
- On the net, Google completely destroys MS.

All in all, MS looks more and more like a fallen giant. It's now clearly heading south.

Too funny.  Sony is losing billions but is suffering a "setback" according to Sony fans, while MS is still making billions, yet is a fallen giant.

 



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Halo_Reach on 24 July 2009
Squilliam said:
^ How can you blow Linux out of proportion? Its barely a proportion to begin with!


lol good one bro, i personly never even seen linux run or heardo f anyone that uses that piece o' shit



http://i959.photobucket.com/albums/ae80/Gamespot_Hobbsey07/1245587468_spinning-baseball-bat.gif

daroamer on 24 July 2009
mario64 said:
MSFT stock is already down sharply actually (7%) in after hours market. Analysts are slaughtering it.

But yes, the xbox 360 is a minor business for MS, they could stop it any day if they need money.

The problem they have is their core business doesn't work well anymore either.

- Windows Vista failed and people don't want to 'upgrade' to Windows 7 either... The PC market is in deep recession, it doesn't help.
- Office looses market share to Open Office (even my state owned company replaced Office by Open Office...)
- Zune is losing to Ipod
- Internet Explorer is killed by Firefox and Safari month after month.
- On the net, Google completely destroys MS.

All in all, MS looks more and more like a fallen giant. It's now clearly heading south.

Where are you spewing that nonsense from?  Almost every comment I've seen about Windows 7 has been very positive.  In fact I've been using it for the past few months and frankly it rocks.   I haven't gone back to Vista since I installed it and I'm thinking of wiping that drive soon because I don't foresee any reason to ever use Vista again.



Crashdown77 on 24 July 2009

I for one already pre-ordered Windows 7 (good bye and good riddance Vista), and I've heard nothing but great things about it. Did MS really make $4 billion in a quarter? If that is real, that's amazing. I thought NOBODY was making money right now besides Wal-Mart (destroyer of the American Dream).



thx1139 on 24 July 2009

I have been using Windows 7 since January and it is easily the best client OS that MS has ever released. That really is the concensus out there and I do believe that this has slowed existing OS and PC sales to a certain extent. I know multiple people that are waiting on new PCs until Windows 7 comes pre-installed.



Its libraries that sell systems not a single game.

Lafiel on 24 July 2009

360 lifetime shipment numbers through 30th of June 09: 31.4m

vgcharts lifetime sales through 27th of June 09: 31.0m


... seems like there are HUUUGGEEEE shortages going on ... (???)