The EDD lost 68 million last quarter, so it is down 198 million so far this year.  I am sure the amateur financial analysts on this site will find the silver lining somewhere in that number.  I am not necessarily interested in reading that spin.  EDD has no impact on MS stock price, in fact analysts rarely mention it.  Microsoft is about the Server and Client divisions, everything else is a distraction.

I do find it interesting that Microsoft shipped 100k fewer consoles this quarter compared to the same quarter in 2008.  The reporting quarter in 2008 was pre-pricecut.  Does this suggest that the effects of Microsoft's pricecut are waning, or did they just stuff the channels in 2008?

First off MS Fiscal Year ended with this report.   EDD division was profitable for the year.

As for the amateur financial analysts.  There are two groups. The ones that actually think about the numbers and realize EDD is not just the 360.  Then there are the others that simply see a loss in the EDD division and claim it must be because of the 360 and when the EDD division is profitable in a qtr it must be everything but the 360.

Thank you for correcting that original "analysis". Where do these posters come from who spew nothing but utter ignorance. It's so frustrating to read some of these posts.

I am not sure I offered any analysis, or perhaps I am not aware of the definition that you are using for the word.  I stated a fact that the EDD has lost 198 million this year.  I should have included the word calendar before year, but I thought that was obvious in context of my overall post.  I agree with thx1139 that EDD is more than the xbox and that's why it is all but impossible to determine how this product is really performing.  Also, included in the division are the Zune, Surface, Microsoft Office retail (Windows and Mac), Microsoft Operating Systems (retail) , etc.  I will leave it to the amateur financial analysts to argue whether the profit from Office/XP/Vista and Zune sales outweigh any costs associated with R&D for Windows Mobile.  (You should be aware that MS doesn't book all R&D expenses in its segments.  Employee expenses and R&D overhead are booked at the corporate level.  But you probably already knew that. )

I think my original question is interesting, and I would appreciate any thoughts on it.  How can MS ship 100k more consoles in the pre-pricecut quarter?  

So they throw a bunch of costs in there but leave out the income? I hate it when things are made needlessly complicated like that.