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Analyst: Microsoft Loses $2 Billion on Xbox Annually


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#46 Blackhearted

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Posted 11 November 2013 - 02:57

 

Do you work for Nintendo or have money invested in the company or something? You're obsessed with defending that company against any criticism.

 

 

Oh. i'm sorry. Is it not allowed to make the same kind of generic 'doom' post on a story of this type only cause it's outside of that specific section?




#47 BillyJack

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Posted 11 November 2013 - 03:00

Where does the patents belong? If they are part of the Xbox division then if you sell off Xbox they would be selling off the patents too. Unless the patents can be retained and the Xbox division sold separately. If that is the case then this guys is not too smart because he can easily say Microsoft is masking the Xbox loss with profits from Windows or Office. Anyone can say that. Microsoft is masking it's losses with its gains. Hmm... genius. I still do not think Xbox should be sold. Microsoft needs to do better at making it profitable. Reduce costs and increase profit. Of course they are a huge corporation so its not like they have not thought about that. They are probably doing the best they can but supervision top down need to make a huge push to change that. Microsoft already has lots of patents with their controllers, Kinect, etc. Now they need to start finding use for that technology for other purposes and use it or their patents to make money.



#48 Indoobidubly

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Posted 11 November 2013 - 03:03

People have been saying this crap for decades.

 

Yeah, EVERY console manufacturer sells the console at a loss, but they more than make up for it with sales of 3rd party games (licensing profit), 1st party games (pure profit), accessories, and nowadays online subscriptions.

 

If Microsoft or any other game company was LOSING $2 billion every year on a single product for a decade, the board of directors would flip.



#49 spudtrooper

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Posted 11 November 2013 - 03:04

Read this last week. It's no wonder investors are calling for them to branch the Xbox division out into a separate business.

 

Sony's stock went up a few months ago on rumor they were spinning off their electronics division and over the past few years their P&L has been total crap.  They're losing money in just about every sector - electronics, phone, movies..  i think they only made money on Justin Timberlake lol

 

http://www.sony.net/...r/13q2_sony.pdf

 

Adjusted earnings of (.19) cents a share.. aka a loss..



#50 OP compl3x

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Posted 11 November 2013 - 03:09

Oh. i'm sorry. Is it not allowed to make the same kind of generic 'doom' post on a story of this type only cause it's outside of that specific section?

 

 

I think you have an exaggerated sense of how much criticism Nintendo gets.



#51 trooper11

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Posted 11 November 2013 - 03:40

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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. 



#52 George P

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Posted 11 November 2013 - 08:16

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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