Xbox One cost Microsoft losses up to 400 million dollars.

#31quickposterPosted 8/8/2014 5:19:23 AM
Rancid_Skank posted...
Good topic to catch out those that simply read the title, and those that actually read the article.

The division didn't report $400m in losses, it's overall profits dropped by $400m when compared to last year, with R&D costs and launch costs cited as the reason.

The Computing and Gaming Hardware division (that the Xbox family belongs to) still made billions in profit regardless.


We know how it works. We had to explain that same line to the amount of people who believed Nintendo's losses were money being taken out of their bank.
#32quincy2000aPosted 8/8/2014 5:23:42 AM
kingofjamaica posted...
Lapanui posted...
Same with Sony and the same with Nintendo. They will have losses on consoles, especially this early on.


Didn't Sony just recently say they're already profitable on PS4? Or was that the whole PlayStation division?


Yes, that's the question. Comparatively, what are the Sony numbers?
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#33Juzten76Posted 8/8/2014 5:23:54 AM
http://www.fool.com/investing/general/2014/05/18/sony-delivers-125-billion-loss-playstation-busines.aspx

http://www.bloomberg.com/news/2014-02-06/sony-ceo-credibility-takes-hit-with-1-1-billion-loss-forecast.html

http://www.bloomberg.com/news/2013-11-01/sony-loses-2-2-billion-in-market-value-after-hirai-forecast-cut.html

http://www.forbes.com/sites/davidthier/2012/02/02/sony-losing-2-9-billion-this-year/

http://edition.cnn.com/2012/05/10/business/japan-sony-record-loss/index.html

http://www.giantbomb.com/forums/general-discussion-30/sony-is-set-to-lose-64-billion-dollars-542721/

http://www.vg247.com/2014/05/01/sony-adds-200-million-to-its-projected-losses-1-2-billion-loss-expected/

http://www.vg247.com/2009/10/30/sony-ps-division-has-lost-4-7-billion-since-launching-ps3/


As you can see it happens. Or in Sony's case, it happens a lot.
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#34Rancid_SkankPosted 8/8/2014 5:29:47 AM
quickposter posted...
Rancid_Skank posted...
Good topic to catch out those that simply read the title, and those that actually read the article.

The division didn't report $400m in losses, it's overall profits dropped by $400m when compared to last year, with R&D costs and launch costs cited as the reason.

The Computing and Gaming Hardware division (that the Xbox family belongs to) still made billions in profit regardless.


We know how it works. We had to explain that same line to the amount of people who believed Nintendo's losses were money being taken out of their bank.


This is your first post in this thread, so it wasn't aimed at you initially.

However, you clearly don't understand. Nintendos losses were just that; actual losses.

http://www.bbc.co.uk/news/technology-28565798

'The Japanese company posted a 9.9bn yen ($97m; 57m) deficit for the April-to-June months, compared with an 8.6bn yen profit for the same period a year earlier.'

The article about Microsoft in the OP clearly states they reported a drop in gross margin, not a loss, which is why the title of the article and thread is misleading.

They haven't lost money, they made less profit than they did in the last fiscal year. It still reports the Xbox division (names as the Computing and Gaming hardware division) as making about 6 billion in revenue (stating that 59% of the revenue equates to about 3.2 Billion).

What the article doesn't do is state how much gross profit the division made, although I would wager they have done that on purpose to cloud matters and gain hits on the site.

The full, correct article can be found here:

http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY14/Q4/default.aspx
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#35Exodus_PrimePosted 8/8/2014 5:33:53 AM
Juzten76 posted...
http://www.fool.com/investing/general/2014/05/18/sony-delivers-125-billion-loss-playstation-busines.aspx

http://www.bloomberg.com/news/2014-02-06/sony-ceo-credibility-takes-hit-with-1-1-billion-loss-forecast.html

http://www.bloomberg.com/news/2013-11-01/sony-loses-2-2-billion-in-market-value-after-hirai-forecast-cut.html

http://www.forbes.com/sites/davidthier/2012/02/02/sony-losing-2-9-billion-this-year/

http://edition.cnn.com/2012/05/10/business/japan-sony-record-loss/index.html

http://www.giantbomb.com/forums/general-discussion-30/sony-is-set-to-lose-64-billion-dollars-542721/

http://www.vg247.com/2014/05/01/sony-adds-200-million-to-its-projected-losses-1-2-billion-loss-expected/

http://www.vg247.com/2009/10/30/sony-ps-division-has-lost-4-7-billion-since-launching-ps3/


As you can see it happens. Or in Sony's case, it happens a lot.


Which one would you be worried about more....losing millions? or losing billions?


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#36Matt_256Posted 8/8/2014 5:44:30 AM
Of course this isn't a massive hit for a giant like Microsoft but remember, not 100% of Microsofts worth is held to the Xbox sector. They have a certain budget to uphold and maintain and if a certain sector is not producing and it just taking loss after loss what do they do..? They drop it. If something isn't going to be profitable why would any company continue to fund it..? Microsoft isn't funding the Xbox out of the goodness of their hearts, they're in this to make money first and foremost otherwise they're just wasting their time and resources when they could be concentrating on something that's going to be profitable.

I'm not saying this is what's going on with the Xbox One, it's just an example. Just don't think Sony or Microsoft wouldn't drop their console if it's doing nothing but damage. Just because they have money to bail them out endlessly doesn't mean they're going to do it..
#37Juzten76Posted 8/8/2014 5:49:47 AM
Exodus_Prime posted...
Juzten76 posted...
http://www.fool.com/investing/general/2014/05/18/sony-delivers-125-billion-loss-playstation-busines.aspx

http://www.bloomberg.com/news/2014-02-06/sony-ceo-credibility-takes-hit-with-1-1-billion-loss-forecast.html

http://www.bloomberg.com/news/2013-11-01/sony-loses-2-2-billion-in-market-value-after-hirai-forecast-cut.html

http://www.forbes.com/sites/davidthier/2012/02/02/sony-losing-2-9-billion-this-year/

http://edition.cnn.com/2012/05/10/business/japan-sony-record-loss/index.html

http://www.giantbomb.com/forums/general-discussion-30/sony-is-set-to-lose-64-billion-dollars-542721/

http://www.vg247.com/2014/05/01/sony-adds-200-million-to-its-projected-losses-1-2-billion-loss-expected/

http://www.vg247.com/2009/10/30/sony-ps-division-has-lost-4-7-billion-since-launching-ps3/


As you can see it happens. Or in Sony's case, it happens a lot.


Which one would you be worried about more....losing millions? or losing billions?


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If I do the math, it turns out that 6.9 billion is more than 400 million. I'd be seriously concerned if I cared.
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"demoes are dumb anyway. just buy the game. solves that." - The Village Idiot
#38Juzten76Posted 8/8/2014 5:52:16 AM
MrSpaM111 posted...
Regardless of how rich MS are, losing 400 million a year really is a lot of money. It's not sustainable to be losing that much money every year no matter how much you have in the bank. I'm not sure any company in the world would consider losses of 400 million a year to be 'pocket change'.

I dread to think what some of you are going to do when you get jobs when your older.

You : "Hey boss, our division lost 400 million dollars this year!"

Boss : "SAY WHAT!?!"

You : "Yeh, but it doesn't matter, well just take the money out of your bank account because you're so rich!"

Boss : "You're fired"


Imagine a company that loses billions every year. That would be crazy!
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"demoes are dumb anyway. just buy the game. solves that." - The Village Idiot
#39Rancid_SkankPosted 8/8/2014 5:52:27 AM
Matt_256 posted...
Of course this isn't a massive hit for a giant like Microsoft but remember, not 100% of Microsofts worth is held to the Xbox sector. They have a certain budget to uphold and maintain and if a certain sector is not producing and it just taking loss after loss what do they do..? They drop it. If something isn't going to be profitable why would any company continue to fund it..? Microsoft isn't funding the Xbox out of the goodness of their hearts, they're in this to make money first and foremost otherwise they're just wasting their time and resources when they could be concentrating on something that's going to be profitable.

I'm not saying this is what's going on with the Xbox One, it's just an example. Just don't think Sony or Microsoft wouldn't drop their console if it's doing nothing but damage. Just because they have money to bail them out endlessly doesn't mean they're going to do it..


>_>
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GT: RancidSkank
PSN: Rancid_UK
#40Reece504Posted 8/8/2014 6:35:24 AM
Juzten76 posted...
Exodus_Prime posted...
Juzten76 posted...
http://www.fool.com/investing/general/2014/05/18/sony-delivers-125-billion-loss-playstation-busines.aspx

http://www.bloomberg.com/news/2014-02-06/sony-ceo-credibility-takes-hit-with-1-1-billion-loss-forecast.html

http://www.bloomberg.com/news/2013-11-01/sony-loses-2-2-billion-in-market-value-after-hirai-forecast-cut.html

http://www.forbes.com/sites/davidthier/2012/02/02/sony-losing-2-9-billion-this-year/

http://edition.cnn.com/2012/05/10/business/japan-sony-record-loss/index.html

http://www.giantbomb.com/forums/general-discussion-30/sony-is-set-to-lose-64-billion-dollars-542721/

http://www.vg247.com/2014/05/01/sony-adds-200-million-to-its-projected-losses-1-2-billion-loss-expected/

http://www.vg247.com/2009/10/30/sony-ps-division-has-lost-4-7-billion-since-launching-ps3/


As you can see it happens. Or in Sony's case, it happens a lot.


Which one would you be worried about more....losing millions? or losing billions?


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If I do the math, it turns out that 6.9 billion is more than 400 million. I'd be seriously concerned if I cared.


This but oh no Microsoft is doomed lol they have money to blow it's not going to effect them like sony.
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