And last but not least... MS financials

I guess some people will need to change their tired line about the Xbox and certain other company.
 
has Xbox even reached its break-even point or is "doubled profits" simply in relation to the quarter? Or maybe Halo2 sales by its 1st party did make the difference for this one time in its lifespan... ;)
 
Geeforcer said:
I guess some people will need to change their tired line about the Xbox and certain other company.
the lower cost statement doesn't relate to the hardware, but costs they are reducing in the business.
 
Any way people spin this, it's still great news for MS. They lost $397 million in the same quarter last year. That's a huge turnaround.

And no, I don't expect positive profit to become commonplace in that division, but a fair amount of people's complaints just got shut up.
 
http://yahoo.reuters.com/financeQuo...tfh43246_2005-01-27_23-41-36_n27293978_newsml

LOS ANGELES, Jan 27 (Reuters) - Microsoft Corp. (MSFT.O: Quote, Profile, Research) on Thursday raised its forecast for Xbox video game console sales and Xbox Live online gaming subscriptions after a strong holiday season.
Microsoft said it now expects to end the current fiscal year in June with a worldwide installed base of 21 million to 22 million Xboxes, up from a prior estimate of just under 20 million units.

"Demand was so great that we nearly made our full fiscal year console target six months ahead of schedule," Chief Financial Officer John Connors said on a conference call with analysts after Microsoft posted quarterly results.

The Xbox Live service should have 1.6 million to 1.8 million subscribers by the end of the fiscal year in June, Connors said. The company had forecast 1.5 million users.

In the most recent quarter, Microsoft swung to a profit in its home and entertainment unit, driven in large part by sales of the blockbuster game "Halo 2" for the Xbox.

Connors also said Microsoft was hard at work on the next generation of the Xbox, widely expected within the industry to be on track for a late-2005 release.
 
Well, I always said that Xbox would lose money in year 1-2, break even in year 3, and turn a profit in year 4-5. I was only off by a year. There's still a ways to go before they erase the $3 billion they've lost so far though :)
 
Johnny Awesome said:
Well, I always said that Xbox would lose money in year 1-2, break even in year 3, and turn a profit in year 4-5. I was only off by a year. There's still a ways to go before they erase the $3 billion they've lost so far though :)

:?:

Huh? You need some help with your math.

For anyone who has actually bother to read them, these financial results are a disaster for MS.
 
Inane_Dork said:
Any way people spin this, it's still great news for MS. They lost $397 million in the same quarter last year. That's a huge turnaround.

And no, I don't expect positive profit to become commonplace in that division, but a fair amount of people's complaints just got shut up.

Unless you know of some other multi-million seller game MS has ready for the rest of the year what will you be saying next quarter when the massive red ink returns...
And the quarter after that...

Will you be posting that all those people claiming this quarter's 'huge turnaround' 'just got shut up?'
 
Tuttle Everything looks positive
where are the losses?

I know Home and Entertainment doesnt only include Xbox so they could be hide the losses
 
Tuttle has a "special" (hyper-negative) way of looking at things to do with Microsoft :LOL:

I would guess that he is referring to such "small" profits even after the enourmous income from Halo 2, and the fact that it does little to offset their expenditure so far on the Xbox project. At least that is my best guess. :oops:
 
A quote from Animal House comes to mind:

"Fat, drunk, and stupid is no way to go through life"

I get the impression that a good many of you are nothing more than teenagers who's only source of console market info is ign, teamxbox, and few headlines from Yahoo/Google News.
 
Inane_Dork said:

Home and Entertainment: Revenue (In million$)

3 Months Ended December 31 2003: 1267
3 Months Ended December 31 2004: 1407
6 Months Ended December 31 2003: 1848
6 Months Ended December 31 2004: 2039

Home and Entertainment: Operating Income (In million$)

3 Months Ended December 31 2003: -397
3 Months Ended December 31 2004: 84
6 Months Ended December 31 2003: -669
6 Months Ended December 31 2004: -57

It shows these 2004/10-12 months were very good (the obvious Halo2 effect) but it was not enough for the 6-month operating income.
 
Tuttle said:
Inane_Dork said:
Any way people spin this, it's still great news for MS. They lost $397 million in the same quarter last year. That's a huge turnaround.

And no, I don't expect positive profit to become commonplace in that division, but a fair amount of people's complaints just got shut up.

Unless you know of some other multi-million seller game MS has ready for the rest of the year what will you be saying next quarter when the massive red ink returns...
And the quarter after that...

I thought Inane_Dork already stated he did not expect a positive profit to become commonplace in that division?

As for the games, I dunno, here might be a good start to find some games that may top 1M. Conkers is a good bet to be a big seller; Forza may also if its quality lines up with its quantity. There seems to be more than a couple potential 1M sellers in there from others also. But that is besides the point, before looking at that I did not realize how nice the Xbox lineup looked for 2005. It really has some good games arriving this year. If consumers are happy and developers are happy then MS will be happy--because they are building bridges for the future. And whether MS's game division is profitable next quarter or the quarter after is sort of besides the point. MS has momentum going in the other direction. As a longtime observer of the industry I think that is pretty obvious.

I do not expect next quarter to be as positive. I actually do not expect MS's gaming division to be profitable for 2 quarters in a row until the 3rd year of Xenon. But I think some here are overly negative and only want to look at one aspect of the Xbox and draw all their conslusions from that. The market is MUCH more complicated than that, as are MS goals. A lot of MS losses related to the expensive Xbox hardware and the fact they had to rely on 3rd party support more than Sony and Nintendo. They are still building their 1st and 2nd party development studios but obviously have come a far away.

I get the impression that a good many of you are nothing more than teenagers who's only source of console market info is ign, teamxbox, and few headlines from Yahoo/Google News.

I see, when people disagree you have to resort to name calling :| This shows, at best, you are no better than the people you are trying to belittle. You may be 100% correct, but when you talk to people this way it ddoes nothing to progress the discussion but instead untracks the ssubject and evolves into a flaming thread full of trolls. Lets try to avoid that :)
 
Listen, the Xbox is a financial disaster when focused on, but in the big picture I think this shows that MS in all likelyhood be much more profitable next-generation, I expect more than one title to sell Halo like numbers.
 
GwymWeepa said:
Listen, the Xbox is a financial disaster when focused on, but in the big picture I think this shows that MS in all likelyhood be much more profitable next-generation, I expect more than one title to sell Halo like numbers.

I agree with this. By "much more profitable" I assume you mean some profit and not "lower losses" ;)
 
GwymWeepa said:
Listen, the Xbox is a financial disaster when focused on, but in the big picture I think this shows that MS in all likelyhood be much more profitable next-generation, I expect more than one title to sell Halo like numbers.

You mean multi-million sellers from Microsoft Games Studio for each quarter, like Mario/Pokemon titles from Nintendo? One for Rare, one for Bungie, and...?

IMHO what Microsoft has to put emphasis on in the next-gen is how they can save in the hardware rather than how they can make a profit from the software. Needless to say these numbers clearly show it.
 
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