about the same as the UK top 100 (based on retail data) but like I say the top 1-3, heaps of sales 4-10 lots, 10-20 a few, under 20 bugger all its an exponential graph (sorry mate don't have a name for it) where the head is high but it quickly peters out
All purpose sales and sales rumors/anecdotes thread next gen+
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Wouldn't that be expected since it's launching only in September?
They didn't know if they still would get a day one edition. They didn't know if the one they got was with or without the kinect. They didn't know what games preorders would get.
Considering I pre-ordered the console over one year ago and at that time Microsoft did have plans and promises I would consider it a good idea to keep those preorders updated and more importantly those that will sell the console.
MS financial filing for their last fiscal year [ended on June 30]:
- "Xbox Platform revenue increased $1.7 billion or 34%, due mainly to sales of Xbox One"
- "Xbox Platform cost of revenue increased $2.1 billion or 72%, due mainly to higher volumes of consoles sold and higher costs associated with Xbox On"
http://www.neogaf.com/forum/showpost.php?p=124461899&postcount=1
So, $400 million lost on gross margin, that's without additional operating costs. Simply put, Xbone consoles are sold at significant loss for now.
- "Xbox Platform revenue increased $1.7 billion or 34%, due mainly to sales of Xbox One"
- "Xbox Platform cost of revenue increased $2.1 billion or 72%, due mainly to higher volumes of consoles sold and higher costs associated with Xbox On"
http://www.neogaf.com/forum/showpost.php?p=124461899&postcount=1
So, $400 million lost on gross margin, that's without additional operating costs. Simply put, Xbone consoles are sold at significant loss for now.
Its only a matter of time before Microsoft sells off the Xbox division. I'm sure they understood that they would take losses in order to gain market share in the console market when they introduced the Xbox, but there is no way they expected to lose money yearly for over a decade. Its dead weight for the company, and its a matter of time before Amazon or Google buy the Xbox division out.
steveOrino
Regular
How do you know Amazon or Google want to buy the brand.
Amazon or Google or any of the biggest MS competitors buying the Xbox brand is, needless to say, premature to even think about.
Michellstar
Regular
Yes amazon is direct competitor to azure and google to win to some extent. Xone relies on both
On the other hand samsung would make sense
On the other hand samsung would make sense
They are saying that the cost of the revenue increased more than the return of the revenue but that does not equate to a loss on the hardware - it can certainly equate to a lower gross margin per unit (because, overall it is diluted by the launch of a lower gross margin hardware - guess what, new hardware has slimmer GM) and additionally this was a launch year ergo there was a lot of expenditure around the launch and marketing.
Note that the C&G H yearly revenue was $9.6B with a gross margin of $0.89B.
Prophecy2k
Veteran
Didn't they attribute the higher cost of increased revenue to the sale of Xbox HW. In which case how can the cost of revenue be higher than the revenue itself, due to cost of selling more HW that you are selling at profit?
The wording makes it sound like the XBone is being sold at a loss. But of course we cannot be sure because the increased hw sales were not the only cause attributed to the increased costs.
I think it would be a good move for MS to sell their whole devices division, but why would anyone want to buy that?
Maybe they can set it up as a separate company and then float it....
Because the gross margin is getting slimmer, not that it is negative, i.e. they are just selling at a lower profit than they were before.
Why? It accounts for 10% of the total revenue, operates at a profit and bolsters other profit centers (i.e. advertising) as well.
There are a couple reasons I think either Google or Amazon want to buy them. Mainly that both companies seem interested in entering the market, and the fact that a division that loses money every year isn't exactly going to sell for a premium dollar. Annual revenue isn't exactly adding a bunch of worth to the division because its upside down every year. Basically, if the Xbox division were a stand alone company, it would be a failing company, and the buyer is going to treat it as such, and basically be paying for the actual assets they will be acquiring. You may be thinking that Microsoft would never sell it for chump change, but when that division has cost the company as a whole billions of dollars, its not hard to see why they might want to let it go.
I don't think so, Xbox division is so smaller than all other divisions of MS, and MS is making billions and billions each quarter. They will stick with Xbox because it enables them to push their services directly to TVs. So far users rejected all those fancy services and elected to support gaming-focused console, but MS will most surely wait a while and slowly implement Windows 9 apps and more.
Not really correct. The filing breaks the revenue major product / service contributors (outside of the reporting divisions). XBOX itself is the 4 largest revenue contributor, having about half the revenue of OS products and 1/3 of Office products. It is not an inconsequential revenue generator.
Code:
Microsoft Office system $24,323
Windows PC operating system $16,856
Server products and tools $17,055
Xbox Platform $ 8,643
Consulting and product support services $ 4,767
Advertising $ 4,016
Phone $ 3,073
Surface $ 1,883
Other $ 6,217
13% of Top Four revenue. 15% of the revenue of Office+OS+server. 10% of total revenue. That's certainly a notable piece of pie, although surely profitability is more important? What are the financials for each department's contribution to profit?
There must be some question about the worth of XBox, otherwise these calls for selling it wouldn't have started. Unless there are some really stupid investors out there who looked at the XBox division making nice profits and said they wanted it axed, there must be a decent financial argument for its removal. I suppose the argument could be that where the division is profitable, it'll drop in profitability going forwards but presently would command a decent price in a sale, so better to sell it while it's hot then when it's nearly defunct (if that's the prediction).
I'm a bit puzzled why you just look at the revenue and not the damage to the Windows ecosphere such a sale would cause. MS can't afford any further eroding of their Operating System mindshare. So from that perspective any losses they make with XBox should be considered a part of the marketing, lobby and benefits budget.
"Investor" / "Analyst" sentiment is never an exact science. Revenue and GM both go hand in hand, but no matter what happens, wiping off 10% of revenue wouldn't look good - if the Office division dropped $8B (irrespective of whether it maintained GM$ contribution) analysts would be saying the sky is falling for MS.
The only analyst commentary that I've read in relation to wanting them to sell the XBOX business points to little more than "diluting company focus"!
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