MS Q3 Financials
- Thread starter Zassk
- Start date
Did you see the revenue/profit ratio in these software divisions?
You can guess how much Mac Office which is a port job is making in the E&D division with these figures. I have no idea how relevant the academic discount is since corporate licenses get heavy discount too.
http://www.next-gen.biz/index.php?option=com_content&task=view&id=10165&Itemid=2
That puts console as roughly 60% of the revenue of the E&D division.
Last edited by a moderator:
just had a quick search over logitech
$100+ million for the 3 months!!!!
from my memory of the marketshare data, MS are pushing logitech close
ok say (conservative figures) perpherials+mac office= $200million profit for the quarter yet we have ppl here in this forum making out that the xbox360 is the major moneyspinner in the E&D division
its like theres a law that states
'spin is governed by the inverse of your products performance'
http://news.moneycentral.msn.com/ticker/article.aspx?Feed=BW&Date=20080116&ID=8053154&Symbol=LOGI
$100+ million for the 3 months!!!!
from my memory of the marketshare data, MS are pushing logitech close
ok say (conservative figures) perpherials+mac office= $200million profit for the quarter yet we have ppl here in this forum making out that the xbox360 is the major moneyspinner in the E&D division
true it maybe legal but is it honest + transparent
true sony are just as bad with their spin over the 'PS platform', cause until recently the ps3 has been performing terribly. i expect to see just as much BS when their financial results come out. nintendo modus operandi is a breath of fresh air
its like theres a law that states
'spin is governed by the inverse of your products performance'
This attempt to discount the profitability of the newly released Office for Mac is bizarre.
Reading the description of MS's divisions you'll get a clearer picture of what EDD actually entails.
http://www.microsoft.com/msft/reports/ar07/staticversion/10k_fr_bus_01.html
EDD not only covers Office Mac sales it covers a lot more...
"EDD also leads the development efforts of our line of consumer software and hardware products including application software for Macintosh computers and Microsoft PC hardware products, and is responsible for all retail sales and marketing for Microsoft Office and the Windows operating systems."
The Business Division also covers Office sales but...
"Approximately 75% of MBD revenue is generated from sales to businesses. Revenue from this category generally depends upon the number of information workers in a licensed enterprise and is therefore relatively independent of the number of PCs sold in a given year. Approximately 25% of MBD revenue is derived from sales to consumers. Most of this revenue is generated from new licenses acquired through fully packaged products and licenses sold through OEMs for new PCs and are generally affected by the level of PC shipments and product launches."
Either Xbox 360 losses are really big or retail sales of MS's PC and Mac software products isn't all that huge.
http://www.microsoft.com/msft/reports/ar07/staticversion/10k_fr_bus_01.html
EDD not only covers Office Mac sales it covers a lot more...
"EDD also leads the development efforts of our line of consumer software and hardware products including application software for Macintosh computers and Microsoft PC hardware products, and is responsible for all retail sales and marketing for Microsoft Office and the Windows operating systems."
The Business Division also covers Office sales but...
"Approximately 75% of MBD revenue is generated from sales to businesses. Revenue from this category generally depends upon the number of information workers in a licensed enterprise and is therefore relatively independent of the number of PCs sold in a given year. Approximately 25% of MBD revenue is derived from sales to consumers. Most of this revenue is generated from new licenses acquired through fully packaged products and licenses sold through OEMs for new PCs and are generally affected by the level of PC shipments and product launches."
Either Xbox 360 losses are really big or retail sales of MS's PC and Mac software products isn't all that huge.
Considering almost $900million of the $1.5 billion revenue in the E&D division was video game/360 related it seems fairly clear that other sources aren't carrying the division. I am not surprised certain people seem eager to paint the picture the way it is, and look for other sources of profit in the division, but they certainly want to overlook the huge money sinks like the Zune.
Johnny Awesome
Veteran
Seriously guys. I'm thinking that X360 made even more than $89 million and it covered some losses on Zune and eHome, etc...
As far as being responsible for retailing Windows: What this means IMO is that the E&D division gets to absorb the costs of retailing the product without getting much revenue. The E&D revenue number is much too low for them to be getting Windows revenue. Doesn't make sense.
In conclusion: X360 profitable. Probably $100 million last quarter or more even.
As far as being responsible for retailing Windows: What this means IMO is that the E&D division gets to absorb the costs of retailing the product without getting much revenue. The E&D revenue number is much too low for them to be getting Windows revenue. Doesn't make sense.
In conclusion: X360 profitable. Probably $100 million last quarter or more even.
Interesting, I didn't read that. With this info in mind, here's another number in the last year as a reference,
http://www.news.com/8301-13860_3-9861625-56.html?tag=nefd.top
That's sales of $561 million for Office in 2007. With Office 2008 released in Q3 2008, it'd be not far from reality to assume $140 million for the Office sales or $100 million profit in the US.
"Interestingly, the combined year-over-year dollar volume growth from Microsoft Windows and Microsoft Office is roughly 80 percent of the year-over-year dollar volume growth for the entire PC software retail market," said Swenson. "Thus, one can't overstate just how important Windows Vista and Office are for U.S. retailers."
http://www.reuters.com/article/pressRelease/idUS144045+30-Jan-2008+BW20080130
I don't think you can expect Office to have the high level of sales it did last year nor make up 17% of all non gaming software sales.
Johnny Awesome
Veteran
Most Office and Windows sales are to OEMs and big business. Retail is a fraction of that.
It's not that hard to see if you don't have another agenda.
In 2007 they released Office for the pc in the 3rd quarter. The division had total revenue of $929 million and lost $315 million in the quarter. Is the mac version a year later somehow much more successful than the pc version at retail?
In 3q 2008 they announced increased revenue from console/games of ~$415 million. So non Xbox/games revenue was also up about $200 million. But earnings are up over $400million. Did Zune sales suddenly skyrocket and they chose not to mention it?
Of course you can also choose to believe that ehome and the pinball machine in the cafeteria are accounting for those profits if you're so inclined.
In 2007 they released Office for the pc in the 3rd quarter. The division had total revenue of $929 million and lost $315 million in the quarter. Is the mac version a year later somehow much more successful than the pc version at retail?
In 3q 2008 they announced increased revenue from console/games of ~$415 million. So non Xbox/games revenue was also up about $200 million. But earnings are up over $400million. Did Zune sales suddenly skyrocket and they chose not to mention it?
Of course you can also choose to believe that ehome and the pinball machine in the cafeteria are accounting for those profits if you're so inclined.
Link
Microsoft's Entertainment & Devices Division posted an $89 million operating profit. The company said cumulative Xbox 360 sales rose to more than 19 million during the quarter. Does the operating profit mean that the company is no longer losing money on the Xbox 360 hardware?
Colleen Healy, Microsoft's general manager of investor relations, didn't answer that question directly when I asked this afternoon. However, she said, "What I can confirm for you is we're making really good progress on that cost curve."
Microsoft's Entertainment & Devices Division posted an $89 million operating profit. The company said cumulative Xbox 360 sales rose to more than 19 million during the quarter. Does the operating profit mean that the company is no longer losing money on the Xbox 360 hardware?
Colleen Healy, Microsoft's general manager of investor relations, didn't answer that question directly when I asked this afternoon. However, she said, "What I can confirm for you is we're making really good progress on that cost curve."
Right, and someone else could quite easily say its you doing the 'spinning'.
Someone said that people are downplaying 360's profitability, but MS is doing that all by itself through its obscure accounts.
Chances are, the truth is probably somewhere in the middle. 360 profits are OK, but not bad.
xbox360 not making a profit on the hardware - CONFIRMED
the question is will this prevent them cutting the xbox360's price, it + the ps3 also need at least a $50 -$100 across the board pricecut, in the states getting outsold by the wii at nearly 3:1 shows they both need to do something drastic
woundingchaney
Regular
Well, a denial to answer a question directly is more often than not a proof of the answer that they'd rather not have to give. If MS were turning a healthy profit on XB360, why would they be hesitant to declare as much? Why would the director of Investor Relations not court investors with remarks that the investment into the gaming division is turning a profit as intended for their long-term mega-profit gameplan?
We don't have the full context so meaning may be getting lost, by at least 9 times out of 10, lack of a straight stress == no
We don't have the full context so meaning may be getting lost, by at least 9 times out of 10, lack of a straight stress == no
Well, a denial to answer a question directly is more often than not a proof of the answer that they'd rather not have to give. If MS were turning a healthy profit on XB360, why would they be hesitant to declare as much? Why would the director of Investor Relations not court investors with remarks that the investment into the gaming division is turning a profit as intended for their long-term mega-profit gameplan?
We don't have the full context so meaning may be getting lost, by at least 9 times out of 10, lack of a straight stress == no
The question was only in regards to the hardware being profitable.
