How much money does the xbox division make in profit

how much money does the xbox division make in profit

Microsoft today reported earnings for its fourth fiscal quarter xboz June 30and the results show the company’s gaming business enjoyed a year of significant growth. However, Microsoft couldn’t take all the credit. The other key metric Microsoft reports for its gaming business is Xbox Live active users. The fourth quarter saw 57 million active users on the service, which is up from the previous Q4’s 53 million, but slightly off the 59 million it posted for Q2 and Q3 of divisuon year. Bowing out of launch exclusives for Xbox Series X means Microsoft is now fully committed to the bold vision it’s talked about for so many years. Enter your email address. Microsoft goes all-in on the ‘evergreen platform’ Bowing out of launch exclusives for Xbox Series X means Microsoft is now fully committed to the bold vision it’s talked about for so many years By Rob Fahey 5 days ago. Latest comments. Sign in to contribute Email address Password Sign in Need an account? Register .

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)}We have recently upgraded our technology mone. Due to this change if you are seeing this message for the first time please make sure you reset your password using the Forgot your password Link. Popular Business. Yet, surprisingly enough, consoles are not a great source of revenue for Microsoft. As a result, Microsoft takes a significant loss on each console sold. Despite the initial loss, Microsoft covers the hit with their Xbox Live service. The Xbox Store allows users to purchase games, music, movies and in-game cash and items. Microsoft is taking its fair share of that sum. Despite disappointing console revenue, CFO Amy Hood has insisted that Xbox diivsion a multi-billion dollar business that turns a profit every year. Microsoft has never released exact figures for the Xbox division. Sony net worth: The real story behind the brand. Remember me. Don’t deos an account? Xbox net worth: Are video games losing Microsoft money? How does Xbox generate revenue?⓬

Three major reporting segments

Guess it’s time to close shop. Microsoft is not leaving billions on the table by getting out of the gaming business. Xbox is doing great! Just because there are more McDonald’s does not make Burger King a failure. And damn Microsoft made more money in 3 months than Sony is worth! Lems like to spit out PR bullshit like revenue without actually talking about profit. It’s the same way MS talks about chickens caught and bullets fired without actually giving us Xbone sales numbers.

how much money does the xbox division make in profit

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Here, I’d like to break down the major components of Microsoft’s business to help you better understand just how the software giant makes its money. Microsoft’s product portfolio is absolutely vast, but in order to keep things manageable, the company sorts its product offerings into three major reporting segments. The first is its productivity and business processes segment, which includes its Office and Dynamics product lines, as well as LinkedIn acquired back in Second is its intelligent cloud segment, which encompasses the company’s server products, cloud services, and enterprise services offerings. Data source: Microsoft K filing. As you can see, Microsoft’s revenue and operating income by segment were fairly evenly split — each segment is a large and important contributor to the company’s overall business. Now, Microsoft’s fiscal isn’t over yet, but it’s also worth looking at what the company has reported so far for each segment during the fiscal year:. Data source: Microsoft Q filing. In the first half of , the percentages of each business’s contribution to the company’s total revenue and operating income didn’t change relative to the full-year results, even though the magnitudes of those contributions changed slightly. It’s also important to understand that there are seasonal factors at play, so the percentage contributions of each business during the first half of might not tally exactly with what the full-year results will ultimately be.

Xbox maker’s full-year results show year-over-year growth in sales, Xbox Live active users

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Thread starter EmSeta Start date Aug 19, Forums Discussions Gaming Discussion. JavaScript is disabled. For a better experience, please enable JavaScript in your browser before xbpx. EmSeta Member. Jun 8, 3, 3 1, This is not intended as trolling.

I’m very curious. Shogmaster Member. Jun 11, 16, 0 0. Probably more than all the money Sony has made with the PS2. Jun 18, 49, 0 1, Didn’t MS lose 1 billion dollars in their Xbox division in the first quarter of the fiscal year?

DDayton more a nerd than a geek. Jun 8, 14, 0 0 www. I thought MS’s quarterly reports were out not that long ago I didn’t think MS was trying to hide that state of affairs Jun 6, 4, 0 0. Jun 8, 0 0. Alcibiades Member. Jun 6, 5, 25 1, texas. Shogmaster said:. MetatronM Unconfirmed Member.

Jun 7, 40, 0 0. All I know is Microsoft has lost more money on the Xbox than I will ever hopeto see in my lifetime.

And that’s considered a smashing success. Step One: Sell systems at a loss. Step Three: Profit. Blimblim The Inside Track. Jun 8, 17, 15 1, As far as I understand it they more or less pay the same price for these parts now compared to 3 years ago.

I know they managed to get the pprofit down a bit with nvidia after a rather painful lawsuit, maybe it’s the divsion with the hard drive manufacturer but I’m still quite sure they pay waaay too much for this. I did not hear anything about the CPU, but I’d not be surprised if it was also the case their.

I find it a bit funny to think MS is being ripped off like that, refreshing in fact. MightyHedgehog Member. At least that money is being spent out into the marketplace. Money’s not really worth anything until it’s spent or traded hands. I’d guess at 3billion, including Live. MightyHedgehog said:. I don’t own MS stock, so I couldn’t care less about their financial standing divisuon investment bankers and shareholders.

We’re talking about MS, anyway Man, you read my original post completely wrong, I think. I wasn’t saying anything was necessarily good Someone always benefits from money being used. I am not, in any way, trying to say anything. Holding onto cash doesn’t remove its value, and I’d find it hard to believe that any businessman would find the notion that MS was better off spending cash simply to make sure that the cash was «spent or traded hands» to be a wise one.

Few investment bankers would see a policy of «spending for the sake of spending» to mkae a sound one, and that’s the policy you uow to be backing. DavidDayton said:. Oh, I see! Well, yes, lots of people benefit. MS doesn’t, and that was my only point I’m suddenly wondering about those early stories of software developers who got piles of cash to develop games, then went to publish the games on multiple systems.

Jun 7, 4, 0 0 Bremerton, WA. That said, it could be billion for Microsoft, but I’ve also heard as low as 2 billion though that may have been for marketing or XBox LIVE or something Jun 8, 12, 4 0 New Jersey. MS has lost billion on Xbox. PhatSaqs Banned. Jun 7, 15, 0 0 www. Whatever the makr it’s hardly a scratch on the MS candy painted Hummer.

More like a fly hitting the windshield. How about guesstimating how much they’ve made from software sales, peripherals, etc.? Jun 9, 3, 11 1, It’s not so much a loss as it is an investment They lost over 4 billion last fiscal year. It’s probably up around 10 billion at this point, LTD. Jun 8, 7, 1 1, PhatSaqs said:. I have no divsiion as i am, and probably will forever remain, a newb at these types of discussions. I always thought that when people talked about the loss numbers, they were referring to net loss, so any revenue from software.

EmSeta said:. Jun 15, 18, 0 1, Step Three: Continue losing money. It’s all in. Jun 6, 2, 0 0 www. GSG Flash Nobody ruins my family vacation but me Jul 7, 14, 0 0. Jun 14, 14, 33 1, Austin. Yes, MS has lost a lot, but they make so many billions more on profit from their software. That’s because they rushed Xbox’s design. Tritroid Member. Jun 6, 3, 47 1, 37 Kentucky. IJoel Member. Jun 6, 6, 0 0. Jun 6, 25, 1 0. Yes because creating an unsustainable, loss taking, false market is just what this industry needs.

Warm Machine Member.

Best-Selling Modern Consoles: From XBox to Now 2001 — 2019


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)}So I was curious to hear Mr. So growing means that revenues are growing. And growing profitably means … what? Or is it just growing revenues positively? Was this a misstatement? What does that mean? He means usage and engagement are growing. Thurrot goes into explaining that Microsoft has been serious about transitioning from primarily a software company to one that uow on emerging Cloud based initiatives. Thurrot specifically highlights the fact that although Microsoft is doing well, they are still very much in a transitional phase into adopting Cloud based technologies, implying that a long road still looms in the horizon for Microsoft. While this is a sign of a company in transition, and Thurrot paints an interesting picture that illustrates Microsoft as being on the forefront of change and new initiatives. The real question is what this means for the Xbox brand, and right now it appears that they may have left that division in an interesting predicament. Zubi Khan x August 14, Top News Stories. Judy Review. Yesterday Review. Arctic Review. Subscribe Now. We use cookies for various proit including analytics and personalized marketing.⓬

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