Analyst: Microsoft Loses $2 Billion on Xbox Annually


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So many analysts want this to happen so badly.

 

Was the Elop quote ever confirmed? That bit only came from a Bloomberg rumor right?

 

 Part of me is glad that analysts do not run tech companies.  Of course, I happen to be a consumer, unlike them. 

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So many analysts want this to happen so badly.

 

Was the Elop quote ever confirmed? That bit only came from a Bloomberg rumor right?

 

 Part of me is glad that analysts do not run tech companies.  Of course, I happen to be a consumer, unlike them. 

 

No, it was never confirmed, it's just more hot air posted by someone over at Bloomberg.   If you ask me this same Nomura analyst and maybe a few others seem to have some type of agenda going when it comes to MS and wanting them to sell Xbox and Bing so bad.     The devices group or however they call it right now is mostly the Xbox, I really don't think Android patent royalties are listed in that group.  The "licensing" that they mark for it has to be Xbox licensing from games and also Gold subscriptions, not patents.   The fact is that if you go back through the years when the Xbox is selling well and the overall game market is up (more games being sold) the whole devices group has posted good profits.   When sales are down and so on it posts a loss.  If the majority of the money was from Android patents, 95% like this guys seems to think, then the group wouldn't be going down, it'd be going up.   One quick look at the smartphone market and you can see it's growing and Android is killing it with the lions share and going up.   So common sense, and logic would tell us that if that part of the business which somehow made all it's money from android patents and nothing from Xbox would still be showing solid gains and growing quarter after quarter.   But it's not, it goes up and down just as the games market goes up and down.

 

Really, what more do people need to look at?   Every time that part of MS posts weak numbers they explicitly point to weaker Xbox sales as the cause.   This analyst has it wrong, totally wrong.   The devices group makes it majority of money from the Xbox and now Surface, not patents from Android.    I'm betting the split is 60/40  Xbox/Surface.    As we know WP is part of the OS group, it doesn't factor into that anymore.  And actually, the OS group is also the part of MS that does the Xbox OS and other software to, so even that cost doesn't fall into that part of the company anymore. 

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