Investors calling for Microsoft to sell off its gaming division!

#11tobydammit(Topic Creator)Posted 9/21/2013 12:32:06 PM
Foxx3k posted...
It's the state of the industry.

http://www.giantbomb.com/sony-corporation/3010-3223/forums/sony-working-to-sell-of-its-entertainment-division-1438591/


Except in the case you cited it's the movie and music divisions and not the gaming division that could potentially be sold off. And, since Sony's first quarter has been so solid, it looks to be one hedge investor who's calling for the split instead of the multiple investors bailing on Microsoft's games division.

Long story short: Sony's doing well this quarter, Microsoft is suffering.

Source:
http://online.wsj.com/article/SB10001424127887323681904578641140985357074.html
#12Orange_ApplesPosted 9/21/2013 12:35:06 PM
slyman19 posted...
"For these reasons, you can expect Microsoft and Xbox to stick together, even if there are bumps along the road."

The author thinks Xbox will stick with MS.


The paragraph above what you quoted:

"What's more, the company may face difficulties finding a buyer if it chooses to abandon the Xbox brand. There are not many companies who are equipped to launch and maintain mass-market gaming hardware and services."

just a bit of perspective as to why the author believes Xbox and MS will be sticking together.

Also, the Xbox One will be that only next gen system making a profit (or at least breaking even) at launch. That will make most investors happy enough.


The console itself will break even depending on how many units are sold. Even if the console makes $500 and costs $500, investors aren't going to be happy if sales are low. Sales are always more important than initial profits, because high console sales means higher software profits.
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#13bessy67Posted 9/21/2013 12:42:01 PM
tobydammit posted...
Foxx3k posted...
It's the state of the industry.

http://www.giantbomb.com/sony-corporation/3010-3223/forums/sony-working-to-sell-of-its-entertainment-division-1438591/


Except in the case you cited it's the movie and music divisions and not the gaming division that could potentially be sold off. And, since Sony's first quarter has been so solid, it looks to be one hedge investor who's calling for the split instead of the multiple investors bailing on Microsoft's games division.

Long story short: Sony's doing well this quarter, Microsoft is suffering.

Source:
http://online.wsj.com/article/SB10001424127887323681904578641140985357074.html


You're totally wrong. Sony's game division has lost $149 million in fiscal year 2013, and MS's Entertainment and devices has gained $848 million in the same period.

http://www.sony.net/SonyInfo/IR/financial/fr/13q1_sony.pdf
http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY13/Q4/default.aspx
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#14slyman19Posted 9/21/2013 12:52:39 PM
tobydammit posted...
Foxx3k posted...
It's the state of the industry.

http://www.giantbomb.com/sony-corporation/3010-3223/forums/sony-working-to-sell-of-its-entertainment-division-1438591/


Except in the case you cited it's the movie and music divisions and not the gaming division that could potentially be sold off. And, since Sony's first quarter has been so solid, it looks to be one hedge investor who's calling for the split instead of the multiple investors bailing on Microsoft's games division.

Long story short: Sony's doing well this quarter, Microsoft is suffering.

Source:
http://online.wsj.com/article/SB10001424127887323681904578641140985357074.html


Yeah MS sure is suffering. 60 billion in the bank, growing profits each year, the Xbox sector finally making a profit, the U.S. government approving the Windows Phone 8 for official use, and MS just took back over 80 contracts from Google. That sure is some intense suffering. Also, most investors want MS to keep the Xbox division to compete for the living room. It's mostly just a single firm making all the noise.
#15Orange_ApplesPosted 9/21/2013 1:15:34 PM(edited)
bessy67 posted...
tobydammit posted...
Foxx3k posted...
It's the state of the industry.

http://www.giantbomb.com/sony-corporation/3010-3223/forums/sony-working-to-sell-of-its-entertainment-division-1438591/


Except in the case you cited it's the movie and music divisions and not the gaming division that could potentially be sold off. And, since Sony's first quarter has been so solid, it looks to be one hedge investor who's calling for the split instead of the multiple investors bailing on Microsoft's games division.

Long story short: Sony's doing well this quarter, Microsoft is suffering.

Source:
http://online.wsj.com/article/SB10001424127887323681904578641140985357074.html


You're totally wrong. Sony's game division has lost $149 million in fiscal year 2013, and MS's Entertainment and devices has gained $848 million in the same period.

http://www.sony.net/SonyInfo/IR/financial/fr/13q1_sony.pdf
http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY13/Q4/default.aspx


Perhaps you can help me understand what this means:
Sony (Page 3)
Game
Sales and Operating Revenue: $1,191 million
Operating Loss: $149 million

Because reading that, what I got was
Sony's gaming division was positive $1.042 billion
---
PC + Nintendo
Winning combination in the late 80s, winning combination in the 90s, winning combination today.
#16bessy67Posted 9/21/2013 1:05:27 PM
Orange_Apples posted...
bessy67 posted...
tobydammit posted...
Foxx3k posted...
It's the state of the industry.

http://www.giantbomb.com/sony-corporation/3010-3223/forums/sony-working-to-sell-of-its-entertainment-division-1438591/


Except in the case you cited it's the movie and music divisions and not the gaming division that could potentially be sold off. And, since Sony's first quarter has been so solid, it looks to be one hedge investor who's calling for the split instead of the multiple investors bailing on Microsoft's games division.

Long story short: Sony's doing well this quarter, Microsoft is suffering.

Source:
http://online.wsj.com/article/SB10001424127887323681904578641140985357074.html


You're totally wrong. Sony's game division has lost $149 million in fiscal year 2013, and MS's Entertainment and devices has gained $848 million in the same period.

http://www.sony.net/SonyInfo/IR/financial/fr/13q1_sony.pdf
http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY13/Q4/default.aspx


Perhaps you can help me understand what this means:
Sony (Page 3)
Game
Sales and Operating Revenue: $1,191 million
Operating Loss: $149 million

Also:
Microsoft
Entertainment and Devices Division (EDD)

EDD revenue increased $134 million, or 8%, primarily due to higher Windows Phone revenue, offset in part by lower Xbox 360 platform revenue.

·Windows Phone revenue, reflecting patent licensing revenue and sales of Windows Phone licenses, increased $222 million.
·We shipped 1.0 million Xbox 360 consoles compared to 1.1 million during the fourth quarter of fiscal year 2012.

EDD operating income increased $142 million, due mainly to higher revenue.


Because reading those pieces of information what I got out of them was:
Sony's gaming division was positive $1.042 billion
MS's Xbox division was negative $88 million


Revenue is not profit. Sony had an operating loss on the games division, meaning they lost $149 million. Revenue - expenses = profit, and apparently their expenses were greater than their revenue. MS had an operating income of $848 million over the same period.
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GT: Bessy67
#17Skynet82997Posted 9/21/2013 1:13:33 PM
tobydammit
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Go away fanboy.
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#18SpongeBob_SPPosted 9/21/2013 1:23:26 PM
I'm not very interested in either the Xbox or PS4 at launch, but if you get enjoyment out of this news, as implied by the exclamation mark, then there is something psychologically wrong with you.
#19AwayFromHerePosted 9/21/2013 1:26:33 PM
Investors do not like losing money. It doesn't matter how much.

If the gaming division is not in the black, it is losing them money and they don't like that. They will opt to get rid of it instead of seeing if it can recover.
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#20zephirrainesPosted 9/21/2013 1:35:45 PM
AwayFromHere posted...
Investors do not like losing money. It doesn't matter how much.

If the gaming division is not in the black, it is losing them money and they don't like that. They will opt to get rid of it instead of seeing if it can recover.


This is true and now some Sony investors want to sell their gaming division too. All fanboyism aside we should all hope that neither company goes under.