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Forums - Sales Discussion - Chart of Profit/Loss for the Big 3's Gaming Sector?

thx1139 said:
TWRoO said:
Seece said:
Demotruk said:
http://www.vgchartz.com/forum/thread.php?id=57802

Chart's a bit of a mess, neither have Microsoft ever been even close to 9 bill in debt.

 

Any others?

 

But thanks anyway Demotruk!!!

That's the one.... I PMed ninja a while back but he hasn't been online in a while to update it. That table is up to date as of last March (though for MS it's only up till June 2008)

Hmm, the GAF one is different.... it doesn't include 2000 and 2001 for Microsofts EDD for some reason, has different exchange rates (I would trust ninjas exchange rates more) and only goes back to 1998.... I am unsure about which is best for aligning the dates (MS FY ends in June, Sony and Nintendo in March)
http://neogaf.net/forum/showpost.php?p=18269957&postcount=75



That is because the Xbox didnt launch until late Q2 of MS FY2002.  The NeoGaf chart matches MS financial reports.

So the Xbox was launched out  of thin air was it? No R&D costs at all?



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How much lost X360? If we only count X360, and we include the last profit of $300 or whatever it was?

I estimate ~$2billion loss.



Slimebeast said:
How much lost X360? If we only count X360, and we include the last profit of $300 or whatever it was?

I estimate ~$2billion loss.

That is probably about right.... I estimated it to be lower actually (about $1-1.5 bil) but that is based as if the XB and X360 were the only products in that division (EDD currently, the XB was originally introduced into "Consumer Software, Services and Devices" though... and that particular branch of MS has had all sorts of different products and services included in it in different years.

So based on the fact that MS likely made profit on the extra stuff included (for instance I think mobile version of Windows OS were included in the CSSD with the XB)

--------

Having looked into it some more... I can say this. The VGChartz table made by liquidninja is more accurate for everything.... I was a little confused with MS figures at first (it seemed that sometimes the MS figures I was looking at agreed with the GAF one, sometimes with ours) but liquidninja kindly gave all the sources under the table, so it seems MS figures can get updated a year or two after the initial report.... so his uses the most up to date versions.

The only thing the GAF one has over liquidninjas is that it has the more recent quarters added.




TWRoO said:

So the Xbox was launched out  of thin air was it? No R&D costs at all?

Considering the use of off the shelf componentry, it wouldn't cost more than $100M at a long stretch. Feel free to tack that on somewhere if you please.



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

Twistedpixel said:
TWRoO said:

So the Xbox was launched out  of thin air was it? No R&D costs at all?

Considering the use of off the shelf componentry, it wouldn't cost more than $100M at a long stretch. Feel free to tack that on somewhere if you please.

100 million is too small.



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gurglesletch said:
Twistedpixel said:
TWRoO said:

So the Xbox was launched out  of thin air was it? No R&D costs at all?

Considering the use of off the shelf componentry, it wouldn't cost more than $100M at a long stretch. Feel free to tack that on somewhere if you please.

100 million is too small.

How so? The research and development costs were the excessively high royalties and cost they paid for the parts. All they had to do was assemble a decent box, the software and especially the console specific software was already there on account of the Dreamcast and Direct X. Making the original Xbox would be no more expensive that Sony creating a PS3 Slim from the already available components they have for the PS3 phat.



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

TWRoO said:
thx1139 said:
TWRoO said:
Seece said:
Demotruk said:
http://www.vgchartz.com/forum/thread.php?id=57802

Chart's a bit of a mess, neither have Microsoft ever been even close to 9 bill in debt.

 

Any others?

 

But thanks anyway Demotruk!!!

That's the one.... I PMed ninja a while back but he hasn't been online in a while to update it. That table is up to date as of last March (though for MS it's only up till June 2008)

Hmm, the GAF one is different.... it doesn't include 2000 and 2001 for Microsofts EDD for some reason, has different exchange rates (I would trust ninjas exchange rates more) and only goes back to 1998.... I am unsure about which is best for aligning the dates (MS FY ends in June, Sony and Nintendo in March)
http://neogaf.net/forum/showpost.php?p=18269957&postcount=75



That is because the Xbox didnt launch until late Q2 of MS FY2002.  The NeoGaf chart matches MS financial reports.

So the Xbox was launched out  of thin air was it? No R&D costs at all?

Of course there were R&D costs. Yet this chart paints the picture that the R&D costs were nearly $3Billion. Yeah right for as someone else has already said for off the shelf components.

Not to mention the chart according to its own sources has wrong numbers.

2008 according to source $426 million profit. Chart $267 million profit.
2007 according to source $1929 milion loss. Chart $2016 million loss. This is also year of $1B set aside for RRoD repairs reflected in the loss.
2006 according to source $1339 million loss. Chart $1329 million loss. 

Doesnt have 2009 $169 million profit nor reflect the reports on the Microsoft official investors site.



Its libraries that sell systems not a single game.

thx1139 said:
TWRoO said:
thx1139 said:
TWRoO said:
Seece said:
Demotruk said:
http://www.vgchartz.com/forum/thread.php?id=57802

Chart's a bit of a mess, neither have Microsoft ever been even close to 9 bill in debt.

 

Any others?

 

But thanks anyway Demotruk!!!

That's the one.... I PMed ninja a while back but he hasn't been online in a while to update it. That table is up to date as of last March (though for MS it's only up till June 2008)

Hmm, the GAF one is different.... it doesn't include 2000 and 2001 for Microsofts EDD for some reason, has different exchange rates (I would trust ninjas exchange rates more) and only goes back to 1998.... I am unsure about which is best for aligning the dates (MS FY ends in June, Sony and Nintendo in March)
http://neogaf.net/forum/showpost.php?p=18269957&postcount=75



That is because the Xbox didnt launch until late Q2 of MS FY2002.  The NeoGaf chart matches MS financial reports.

So the Xbox was launched out  of thin air was it? No R&D costs at all?

Of course there were R&D costs. Yet this chart paints the picture that the R&D costs were nearly $3Billion. Yeah right for as someone else has already said for off the shelf components.

Not to mention the chart according to its own sources has wrong numbers.

2008 according to source $426 million profit. Chart $267 million profit.
2007 according to source $1929 milion loss. Chart $2016 million loss. This is also year of $1B set aside for RRoD repairs reflected in the loss.
2006 according to source $1339 million loss. Chart $1329 million loss. 

Doesnt have 2009 $169 million profit nor reflect the reports on the Microsoft official investors site.

I agree on the R&D side of things.... it's nice to see the past numbers in addition, but the 2000 figures and probably the majority of 2001 numbers can be ignored for the X360 side of things.

Regarding the differences.... actually I checked them all.... the profit loss figures are clearly edited after the initial release, which means presumably being more accurate.... liquidninja has got all the latest figures for each year he could up to FY2008.

Here is the info from the FY2008 report:

Entertainment and Devices Division

     267       (2,016 )      (1,329 )

The number on the right (1,329) is for 2006.... but when the 2006 report came out it had (1,283)

Microsoft explains why this is:

Because of our integrated business structure, operating costs included in one segment may benefit other segments, and therefore these segments are not designed to measure operating income or loss directly related to the products included in each segment. Inter-segment cost commissions are estimated by management and used to compensate or charge each segment for such shared costs and to incent shared efforts. Management will continually evaluate the alignment of product development organizations, sales organizations, and inter-segment commissions for segment reporting purposes, which may result in changes to segment allocations in future periods.

 

All the figures in ninjas chart are the most up to date (so 2006 figures taken from 2008 report rather than 2006 report.)



Entertainment and Devices Division

     267       (2,016 )      (1,329 )


On MS Investor site most upto date information for FY2009, FY2008, FY2007

Operating income (loss) $169M $497M $(1,898)

From 2008 report you get the most accurate upto date 2006 numbers $(1,339)
From 2007 report you get the most accurate upto date 2005 numbers $(539)
From 2006 report you get the most accurate upto date 2004 numbers $(1337)
From 2005 report you get the most accurate upto date 2003 numbers $(1,191)
From 2004 report you get the most accurate upto date 2002 numbers $(1,135) Xbox launched midway through FY2002.

FY2002 $(1,135M)
FY2003 $(1,191M)
FY2004 $(1,337M)
FY2005 $(539M)
FY2006 $(1,339M) 360 launch 1/2 thru
FY2007 $(1,898M) RRoD setaside
FY2008 $497M
FY2009 $169M
FY2010 so far $686M

 



Its libraries that sell systems not a single game.

thx1139 said:

On MS Investor site most upto date information for FY2009, FY2008, FY2007

Operating income (loss) $169M $497M $(1,898)

From 2008 report you get the most accurate upto date 2006 numbers $(1,339)
From 2007 report you get the most accurate upto date 2005 numbers $(539)
From 2006 report you get the most accurate upto date 2004 numbers $(1337)
From 2005 report you get the most accurate upto date 2003 numbers $(1,191)
From 2004 report you get the most accurate upto date 2002 numbers $(1,135) Xbox launched midway through FY2002.

FY2002 $(1,135M)
FY2003 $(1,191M)
FY2004 $(1,337M)
FY2005 $(539M)
FY2006 $(1,339M) 360 launch 1/2 thru
FY2007 $(1,898M) RRoD setaside
FY2008 $497M
FY2009 $169M
FY2010 so far $686M

 

Well then someone is going to have to explain to me the difference between the different figures.

Here for instance:
Financial Operating Segment History (Excel - 53.5 KB)

(hope that link works... it's an excel file)
It gives this:

  For the three months ended      For the three months ended   
Operating Income (Loss) September 30, 2008 December 31, 2008 March
31, 2009
June
30, 2009
Fiscal Year 2009   September 30, 2009 December 31, 2009 Fiscal Year 2010
Windows & Windows Live Division  $       3,049  $     2,712  $    2,266  $    1,921  $   9,948    $    1,460  $   5,394  $    6,854
Server and Tools           1,034         1,375        1,246       1,241       4,896          1,276       1,491        2,767
Online Services Division             (315)          (320)         (403)         (576)      (1,614)            (484)         (466)         (950)
Microsoft Business Division           3,178         3,021        2,755       2,705     11,659          2,857       3,010        5,867
Entertainment and Devices Division              160           130           (41)         (141)          108             311          375          686
Corporate-level activity          (1,107)          (979)       (1,385)      (1,163)      (4,634)            (938)      (1,291)       (2,229)
Consolidated  $       5,999  $     5,939  $    4,438  $    3,987  $  20,363    $    4,482  $   8,513  $  12,995

Which gives a different figure to yours for 2009. And given that it includes the quarter just ended I would presume it is the most up to date figure.

Or this for instance... which is an excel format file of the 2008 report... which gives different figures for FY 2008 and 2007
 Report in Microsoft Excel format

Entertainment and Devices Division                  (188)         (1,223)                    426           (1,969)

And again for 2007, 2006 etc... many different figures for the same divisions profit/losses.

http://www.microsoft.com/msft/earnings/history.mspx

All this information seems to be a lot more dynamic than it is possible to list in a permanent table. Personally with the nature of Excel