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Forums - Microsoft Discussion - Microsofts reports record second quarter

heruamon on 29 January 2010
Twistedpixel said:
heruamon said:
Stellar results, as Win 7 delivers M$ back to the top in the OS world. As for EDD, what can you say but WOW...The division has turned things around, and it's looking very much like they are on a solid glide path to profitability for the rest of this console generation. I think profits will accelerate, and quote me as saying that the 6-month July thru December quarters of this year will see profits well over ONE BILLION DOLLARS. If anybosy is keeping score, that means before the launch of the next console, the EDD will be solidly in the black!

They'd break even within a year and a half on the Xbox 360 with that kind of result.

Without a doubt, I think we will see the launch of the new Xbox console in 2012 at the latest.



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

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epicberserk on 29 January 2010

Go microsoft woo with that money get your fan base more games woo LOL



arsenicazure on 29 January 2010

Of course they would.. Vista is a piece of crap, takes forever to startup and is buggy.. anything in comparison is gold!

MS making soo much money... brrr.. i feel violated!



Doubt is not a pleasant condition, but certainty is absurd.

owner of : atari 2600, commodore 64, NES,gameboy,atari lynx, genesis, saturn,neogeo,DC,PS2,GC,X360, Wii

5 THINGS I'd like to see before i knock out:

a. a AAA 3D sonic title

b. a nintendo developed game that has a "M rating"

c. redesgined PS controller

d. SEGA back in the console business

e. M$ out of the OS business

fxa5209 on 29 January 2010

Well,

Everyone is cheering and happy but all forgot the most important thig about the report and it relation to this web site. Revenues for Xbox and PC has declined by over 12%. This decrease was due mainly to decreased revenue from Xbox 360 video games, decreased Xbox 360 consoles sold, and decreased revenue per console"



johnsobas on 29 January 2010
kowenicki said:
fxa5209 said:
Well,

Everyone is cheering and happy but all forgot the most important thig about the report and it relation to this web site. Revenues for Xbox and PC has declined by over 12%. This decrease was due mainly to decreased revenue from Xbox 360 video games, decreased Xbox 360 consoles sold, and decreased revenue per console"


hilarious.... only someone that knows zero about business would say that. of course revenue is down, they reduced the price!!

profit, profit, profit.

revenue means littel next to profits, as you will see when the sony figures come out.


yup revenue doesn't mean a whole lot unless it is taken in the correct context.  If revenue mattered that much the gaming industry would be absolutely booming right now.  Instead we are seeing record revenue and record losses at the same time by many companies.



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

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DirtyP2002 on 29 January 2010
Twistedpixel said:
heruamon said:
Stellar results, as Win 7 delivers M$ back to the top in the OS world. As for EDD, what can you say but WOW...The division has turned things around, and it's looking very much like they are on a solid glide path to profitability for the rest of this console generation. I think profits will accelerate, and quote me as saying that the 6-month July thru December quarters of this year will see profits well over ONE BILLION DOLLARS. If anybosy is keeping score, that means before the launch of the next console, the EDD will be solidly in the black!

They'd break even within a year and a half on the Xbox 360 with that kind of result.


They probably will break even with the Xbox 360 soon. Don't forget the EDD is carrying the Zune (HD) for quite some time and this didn't make a profit for years. So only regarding the Xbox 360, MS might break even in 6 months or something like that.



Imagine not having GamePass on your console...

Seece on 29 January 2010
Twistedpixel said:
Seece said:
$686 million over 2 Q's!! They won't start mass producing Natal until about 2 months before it's launch, so it looks like the rest of the fiscal year Jan - July 1st is going to be profitable.

$314 million to go and the E&D post $1 billion profit for the first time ever!!!

Inventory in hand isn't counted as an expense, its counted as an asset unless they intend to sell it at a loss.

Ooh I see! so 1 $ bill is within reach!



 

thx1139 on 29 January 2010
fxa5209 said:
Well,

Everyone is cheering and happy but all forgot the most important thig about the report and it relation to this web site. Revenues for Xbox and PC has declined by over 12%. This decrease was due mainly to decreased revenue from Xbox 360 video games, decreased Xbox 360 consoles sold, and decreased revenue per console"

Where do you get this information?  Yes it is easy to calculate that the of the $256M revenue decrease $200M is simply selling 800,000 fewer 360s to retail. That leaves $56M more to be divided up by other things.  We know that Windows Mobile marketshare dropped 20% the previous qtr compared to the previous year and no reason with the iPhone and Google phone onslaughts to think that Windows Mobile marketshare didnt continue that same decline if not worse during the gift giving season.  Windows Mobile is also where a great deal of investment $ is going in the EDD division.  Someday we will see Windows Mobile 7 and maybe it could reduce the Windows Mobile bleeding.



Its libraries that sell systems not a single game.

Twistedpixel on 29 January 2010
DirtyP2002 said:
Twistedpixel said:
heruamon said:
Stellar results, as Win 7 delivers M$ back to the top in the OS world. As for EDD, what can you say but WOW...The division has turned things around, and it's looking very much like they are on a solid glide path to profitability for the rest of this console generation. I think profits will accelerate, and quote me as saying that the 6-month July thru December quarters of this year will see profits well over ONE BILLION DOLLARS. If anybosy is keeping score, that means before the launch of the next console, the EDD will be solidly in the black!

They'd break even within a year and a half on the Xbox 360 with that kind of result.


They probably will break even with the Xbox 360 soon. Don't forget the EDD is carrying the Zune (HD) for quite some time and this didn't make a profit for years. So only regarding the Xbox 360, MS might break even in 6 months or something like that.

Unfortunately we will never know the true extent of the Xbox 360 inside that division. Well unless it grows big enough to be reported as a seperate line on their balance sheet.

Btw, if I had invested 7B and was being paid back with the EDD profits, I would be pretty happy with my return on investment. An asset + profit is a pretty good result. Most people who say buy rental properties in some stupid Rich Dad/Poor Dad desperate attempt to get rich quick wouldn't see nearly the same ROI as the Xbox 360 division.



Do you know what its like to live on the far side of Uranus?

fxa5209 on 31 January 2010
thx1139 said:
fxa5209 said:
Well,

Everyone is cheering and happy but all forgot the most important thig about the report and it relation to this web site. Revenues for Xbox and PC has declined by over 12%. This decrease was due mainly to decreased revenue from Xbox 360 video games, decreased Xbox 360 consoles sold, and decreased revenue per console"

Where do you get this information?  Yes it is easy to calculate that the of the $256M revenue decrease $200M is simply selling 800,000 fewer 360s to retail. That leaves $56M more to be divided up by other things.  We know that Windows Mobile marketshare dropped 20% the previous qtr compared to the previous year and no reason with the iPhone and Google phone onslaughts to think that Windows Mobile marketshare didnt continue that same decline if not worse during the gift giving season.  Windows Mobile is also where a great deal of investment $ is going in the EDD division.  Someday we will see Windows Mobile 7 and maybe it could reduce the Windows Mobile bleeding.


And here is my source, enjoy.

 

http://www.joystiq.com/2010/01/28/xbox-division-down-11-but-windows-7-drives-record-q2-revenue-fo/