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Microsoft To Buy Apple?
- Thread starter deanbo
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cwerdna said:
ROFL...
I dont even think you read the financial report properly... Like you said on page 22 of the SEC report (the last link you gave me) it says, 2876 (in millins) is revenue and 1215 (in millions) is loss. If you do the math there is the revenue. Also if you also bothered reading the words it says, "increase in operating loss in fiscal 2004 was primarily due to $141 million of stock-based compensation expense from the employee stock option transfer program in the second quarter of fiscal 2004, increased sales of negative margin consoles, and costs associated with the next generation console development efforts, partially offset by increased Xbox and Mac Office software sales. The operating loss increase from fiscal 2003 also included a lower of cost or market adjustment of approximately $90 million, reflecting the current stage in the lifecycle of the Xbox console. Operating loss in 2003 increased by $56 million or 5% from the prior year as the product costs associated with the increased Xbox console sales and increased marketing expense more than offset the 12% increase in revenue."
Basically in fiscal year of 2004 it had a gain in loss because of employee stock options, NEXT GENERATION DEVELOPMENT, and some software sales. The only thing you were right is that in 2003 the console system took a hit because of its price drop. However if you did the math, (revenue - loss) you can still see the profit is still there. Not much compared to Microsoft's other division
Also on on this site it says, "The Xbox business showed gains too. Revenue grew 9 percent and the operating loss shrank by 47 percent compared with last year."
Finally I dont even THINk you are reading the articles you show. On the digital online page you showed, it says, "While the games division still suffers, the company as a whole reported an operating income of $3.3 billion from revenues of $9.62 billion -- dwarfing the losses incurred by the Xbox." But to take a look at the Xbox division alone though, it says, the total revenue was 583 MILLION and the loss of 164 MILLION. If you take out the loss from the revenue like how I taught you before, (583-164) 419 is the total PROFIT Xbox made alone.
The only thing you were right is that it is true that Xbox is not released in China.
Seriously did you even BOTHER READING THE ARTICLES? Or even take an econ class before? Because I dont think you understand how you get profit. Again I'll teach you again, REVENUE - LOSS = PROFIT
Dude. I have taken economics classes. You're the one who's wrong and misreading the reports. If COST of revenue due to expenses such as money for R&D, equipment, utilities, facilities, janitors, taxes, salaries, cost of goods, cost of warranty repairs, etc. EXCEEDS your revenue, you have a LOSS.wako said:
Your equation should be revenue - expenses = profit (or loss, if the expenses EXCEED revenues). Go back and look at the PROFITABLE groups. You can see they have operating INCOME, as in numbers not surrounded by () which denote negative values.
Go take a look at the tables at the very bottom of http://www.microsoft.com/msft/earnings/FY05/earn_rel_q3_05.mspx. Notice that the Home and Entertainment division is one amongst three groups that's losing money for the nine months ending March 31, 2005? The other 4 segments are losing money and there's a whole ton of other expenses lumpted into "other".
To further my points, see these quotes:
http://www.theregister.co.uk/2005/01/27/microsoft_fy2005q2_earnings/
"Microsoft said that its home division - which includes Xbox - turned a profit for the first time, as did MSN. Home and Entertainment turned a $397m loss into a $84m profit in the past quarter, on revenues of $1.46bn, $140m higher than last year. Microsoft cited the launch of Xbox live and the game Halo 2, in the Christmas season, with almost one in three Xbox owners snapping up a copy of the game.
However CFO John Connors said that this was a Halo-powered one-off. He warned that Home and Entertainment would lose money in the forthcoming quarter, and said he didn't expect it to make a steady profit until fiscal year 2007."
http://seattlepi.nwsource.com/business/222155_msftearns29.html
"The Home and Entertainment Division, which includes the Xbox, posted a loss of $154 million for the quarter, slipping back into the red after holiday sales of the blockbuster Xbox game "Halo 2" helped the division reach profitability for the first time in the quarter ended Dec. 31."
Also, regarding Japan and Asia with respect to Xbox see these quotes:
http://news.com.com/Game+console+sales+plunge+in+2004/2100-1043_3-5471617.html "Xbox has done really well in North America, but it hasn't gotten very far in Japan and the rest of Asia...."
http://news.com.com/Microsoft+grabs+more+Xbox+developers/2110-1043_3-5596700.html with the quote "Microsoft is hoping such development deals will give it a software roster more attuned to tastes in Japan, where the Xbox has made minimal headway to date against competing consoles from Sony and Nintendo."
http://hardware.gamespot.com/Story-ST-15016-2009-4-6-x "it's possible the 360 will have a different, less-embarrassing fate than the original Xbox (which still struggles to break 2 million units sold in Japan). ..."
http://seattlepi.nwsource.com/business/225098_e3japan20.html 'Xbox executives are blunt about the situation: During a briefing at E3 this week, one financial analyst observed that the original Xbox has been a "distant third" in console market share in Japan. Robbie Bach, Microsoft's chief Xbox officer, quickly corrected him, calling that a charitable description.
"Really, we sell literally hundreds a week," Bach said. "The Japan business has not been successful. We've not done well there...'"
