Microsoft Announces Q3 Financial Results: 1.2 Million Xbox One Consoles Shipped;

#31BigBOO2UPosted 4/25/2014 8:19:33 AM
Rybal posted...
LEGEND_KILLERRR posted...
Microsoft profit over 20 billion dollars in one quarter I think we'll be ok


You do understand that that 20B was revenue, not profit, right?


Boom.

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You can always tell the wannabes in a room who don't understand the difference.

Simple Example: Introduce a new product that sells at $500 and costs $500 to make. Add in a marketing campaign. Sell 3 million units.

3 million X $500 = $1.5 billion Revenue
3 million x $500 = -$1.5 billion Manufacturing Costs
Less $500,000,000 in Advertising Expenses
--------------------------------------------------------

Net Loss = (Half a Billion)
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#32goldwPosted 4/25/2014 8:20:23 AM
-FryShakeWad- posted...
At least they aren't bankrupt like Sony. Smh. Terrible.


The Games division of Sony is actually profitable, tho.

Yeah, Sony really needs to give up on TV and Laptops.
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#33jon davisPosted 4/25/2014 8:52:40 AM
kcypher2000 posted...
Why do uneducated ponies compare xbox numbers in 13 countries to the ps4 in 55 and costs much less. Ps4 is actually doing pretty bad considering that its flopping in most of those other countries like it is flopping in Japan.

Great financial results for MS however and lets see how Sony does.


You try way WAY too hard for someone on the losing team.
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Strength is the only thing that matters in this world, everything else is just a delusion for the weak.
#34ejay8320Posted 4/25/2014 8:58:08 AM
MattVSin posted...
ejay8320 posted...
From linked article by TC

The Xbox platform revenue increased by 45%, contributing to a revenue for the Devices and Consumer Hardware divisio $1.97 billion with an overall increase of 41%. On the other hand gross margin decreased by 34% due to higher Xbox console sales and early lifecycle economics of the Xbox One.

This part doesn't make sense - saying income before costs dropped due to higher sales of xbox consoles?


Massive R&D costs and a console being sold at a loss will cause this.

Revenue - Cost of Goods Sold (production of units, etc.) = Gross Margin

So their revenues went up but their costs went up more so the net is less. This is to be expected with new consoles though. I wouldn't read too much into it at this point.


Thanks, I do understand revenue, gross income, and net income, I think the wording just threw me off - it made it sound like selling the xbox consoles were the cause of the drop in the gross income and not the manufacturing costs & R&D.
#35-FryShakeWad-Posted 4/25/2014 9:03:40 AM
jon davis posted...
kcypher2000 posted...
Why do uneducated ponies compare xbox numbers in 13 countries to the ps4 in 55 and costs much less. Ps4 is actually doing pretty bad considering that its flopping in most of those other countries like it is flopping in Japan.

Great financial results for MS however and lets see how Sony does.


You try way WAY too hard for someone on the losing team.


Classic sony fanboy rhetoric. Lol, so entertaining.
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#36kcypher2000Posted 4/25/2014 9:09:32 AM
goldw posted...
-FryShakeWad- posted...
At least they aren't bankrupt like Sony. Smh. Terrible.


The Games division of Sony is actually profitable, tho.

Yeah, Sony really needs to give up on TV and Laptops.


You are basing that off the same quarter when MS games division was more profitable then sonys but ponys ignored profit then.

Now watch them 180 if sonys game division is not profitable this year. Remember sonys fiscal year end was march so prepare to 180 yet again ponies.
#37kcypher2000Posted 4/25/2014 9:12:05 AM
jon davis posted...
kcypher2000 posted...
Why do uneducated ponies compare xbox numbers in 13 countries to the ps4 in 55 and costs much less. Ps4 is actually doing pretty bad considering that its flopping in most of those other countries like it is flopping in Japan.

Great financial results for MS however and lets see how Sony does.


You try way WAY too hard for someone on the losing team.


Losing team?? Haha you clowns are special. So tell me kid, does that mean wii won last gn since sony sold less units or did MS win because it was more profitable?

Wait back then sales and profit didnt matter.... Incoming 180.
#38gray_fox_00Posted 4/25/2014 9:14:23 AM
ejay8320 posted...
MattVSin posted...
ejay8320 posted...
From linked article by TC

The Xbox platform revenue increased by 45%, contributing to a revenue for the Devices and Consumer Hardware divisio $1.97 billion with an overall increase of 41%. On the other hand gross margin decreased by 34% due to higher Xbox console sales and early lifecycle economics of the Xbox One.

This part doesn't make sense - saying income before costs dropped due to higher sales of xbox consoles?


Massive R&D costs and a console being sold at a loss will cause this.

Revenue - Cost of Goods Sold (production of units, etc.) = Gross Margin

So their revenues went up but their costs went up more so the net is less. This is to be expected with new consoles though. I wouldn't read too much into it at this point.


Thanks, I do understand revenue, gross income, and net income, I think the wording just threw me off - it made it sound like selling the xbox consoles were the cause of the drop in the gross income and not the manufacturing costs & R&D.


It's been typical that the first year or so of a systems life cycle since they're still recouping R&D costs and selling systems at a loss do to manufacturing and shipping costs.
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A word to the wise ain't necessary - it's the stupid ones that need the advice
#39jon davisPosted 4/25/2014 9:17:18 AM
kcypher2000 posted...
jon davis posted...
kcypher2000 posted...
Why do uneducated ponies compare xbox numbers in 13 countries to the ps4 in 55 and costs much less. Ps4 is actually doing pretty bad considering that its flopping in most of those other countries like it is flopping in Japan.

Great financial results for MS however and lets see how Sony does.


You try way WAY too hard for someone on the losing team.


Losing team?? Haha you clowns are special. So tell me kid, does that mean wii won last gn since sony sold less units or did MS win because it was more profitable?

Wait back then sales and profit didnt matter.... Incoming 180.


The Wii won with most units sold at a profit to Nintendo, something MS wouldn't know anything about....what with coming dead last last gen and continuing to do so now.
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Strength is the only thing that matters in this world, everything else is just a delusion for the weak.
#40bob15xPosted 4/25/2014 9:18:47 AM
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