LukasTaves
Member
In 2010, back when Xbox Live had 25 million subscribers Ms announced that Live revenue was more than 1.2 billion for the year (subs + content sales).
Now with 48 million subscribers, and using a 50% ratio for gold users, that would mean already 1.5 billion dollars in subscription alone (Actually 1.6 if I understood the last fiscal report correctly). Then there are Ms cut on digital sales, and royalties for 3rd party games, and sales of their own games, and that's not even accounting that 360 is sold at a profit... And yet somehow they still manage to lose 2 billion a year due xbox? How?
What other profitable revenue streams does the EDD division even have? That's practically the division of the money sinkers.
Now with 48 million subscribers, and using a 50% ratio for gold users, that would mean already 1.5 billion dollars in subscription alone (Actually 1.6 if I understood the last fiscal report correctly). Then there are Ms cut on digital sales, and royalties for 3rd party games, and sales of their own games, and that's not even accounting that 360 is sold at a profit... And yet somehow they still manage to lose 2 billion a year due xbox? How?
There is no dedicated "Xbox division" in Microsoft's earnings reports, so we don't really know how profitable their whole Xbox endeavour is. That's what this analyst is saying: That they are covering up the poor overall performance of the Xbox with other, unrelated, revenue streams in the same business division.
What other profitable revenue streams does the EDD division even have? That's practically the division of the money sinkers.