MS: 360 division losing money again

Microsoft Corporation
    Segment Revenue and Operating Income (Loss)
    (In millions) (Unaudited)

                                 Three Months Ended  Nine Months Ended
                                      March 31,         March 31,
                                   ----------------  ----------------
                                     2009    2008     2009     2008
                                   -------  -------  -------  -------
    Revenue
    -------------------------------
    Client                          $3,404   $4,033  $11,604  $12,506
    Server and Tools                 3,467    3,238   10,616    9,381
    Online Services Business           721      843    2,357    2,377
    Microsoft Business Division      4,505    4,731   14,330   13,663
    Entertainment and Devices
     Division                        1,567    1,592    6,564    6,616
    Unallocated and other              (16)      17     (133)      40
                                   -------  -------  -------  -------
    Consolidated                   $13,648  $14,454  $45,338  $44,583
                                   =======  =======  =======  =======

    Operating Income (Loss)
    -------------------------------
    Client                          $2,514   $3,115   $8,689   $9,855
    Server and Tools                 1,344    1,080    3,978    3,170
    Online Services Business          (575)    (226)  (1,521)    (737)
    Microsoft Business Division      2,877    3,127    9,325    9,010
    Entertainment and Devices
     Division                          (31)     106      299      668
    Corporate-level activity        (1,691)  (2,912)  (4,394)  (5,374)
                                   -------  -------  -------  -------
    Consolidated                    $4,438   $4,290  $16,376  $16,592
                                   =======  =======  =======  =======

The loss may well be Zune related.

Well with MS and Sony, both failing to make a return on investment and Nintendo happy to ride out its success, it seems obvious the next generation of machines are a long time away.

so, am I misunderstanding this, or are MS making a loss from it's online operations?

Something Fishy

Fromt hat we're meant to believe the business division is losing billions?

but they're not though? doesn't make sense.

Entertainment and Devices
Division (31) 106 299 668

They lost 31 million, that includes Zune, PC games though not just Xbox 360.

31 million to Microsoft is hardly a big loss. They spent more on timed exclusive DLC.

Something Fishy

Rik wrote:
Entertainment and Devices
Division (31) 106 299 668

They lost 31 million, that includes Zune, PC games though not just Xbox 360.

ah sorry, i was being a dumb arse and not reading that losses are bracketed.

so business are majorly in the black as expected.

Those losses across the division are tiny then when you look at their revenue and the corporate health as a whole. Suggests the Xbox business is in a much better place than it was last gen where, without a reducing cost model, they could never hope to do anything but leak money.

Rik wrote:They lost 31 million, that includes Zune, PC games though not just Xbox 360.

To be more precise:

The E&D Division is composed of five main businesses: the Interactive Entertainment Business, home to the Xbox and Games for Windows gaming platforms; the Mobile Communications Business, which develops and markets Windows Mobile software, services and applications; the TV, Video and Music Business, comprised of Microsoft Mediaroom, Windows Media Center and Zune software and services; and the Specialized Devices and Applications Business, which includes the Hardware Group, Microsoft Surface, Office for Mac, Microsoft Auto and Windows Embedded software.

Some folk think they've been shovelling money into Zune HD, apparently Zune has been tanking a bit lately.
360 hardware and software sales on the other hand are healthy right now (best year for 360 sales so far).

Even though Microsoft are loosing money...well it doesn't really matter, does it. I mean they have the resources to build a new world let alone get through some troubled times.

However I would get rid of the Zune...that one will always be hemorrhaging money. It will never compete with Apple's iPod.

This is very interesting though...as in Microsoft can soak it up but Sony have been more unforgiving. I wonder how much of a positive effect the high-price of PlayStation3 has had on balance sheets.

Hmmm...

Last edited by Christopher on Fri Apr 24, 2009 12:35 pm, edited 1 time in total.

Remember though that Microsoft are in America where the dollar has been weak so that would have less of an impact on their profits than Sony or Nintendo, the strong Yen is actually making things much worse for them.

suzzopher wrote:Remember though that Microsoft are in America where the dollar has been weak so that would have less of an impact on there profits than Sony or Nintendo, the strong Yen is actually making things much worse for them.

Aye, still like to see the figures though.

Totally misleading topic title, seeing as it's everything but the 360 in the division that's losing money. :roll:

Zellery wrote:Totally misleading topic title, seeing as it's everything but the 360 in the division that's losing money.

this.

are they losing money are just not making as much?

MS: 360 division losing money again

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