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[Maxwell House]

I'd be really amazed if MS isn't making a profit on each 360 sold now. That iSupply analysis was from over a year ago, and back then it supposedly was making a profit (of course, the 360 cost $50 more back then, but I believe their costs probably have gone down by more than that in a year's time).

Since then, they have revised the MB and moved the CPU to 65nm (well, for the news manufactured ones, which we should see more and more as this holiday season goes on).

 

[Phoenix Down]

Updated:

Sold to Retail/Shipped

LTD:

PS3 - 5.59 million (11 months)
Wii - 13.17 million (11 months)
360 - 13.4 million (23 months)

Monthly average:

PS3 - 508,100 (per month)
360 - 582,600 (per month)
Wii - 1,197,200 (per month)

The average starts from first month for shipping, all of which were November.

hmm ps3 and 360 sales are pretty close.. i wonder how much of a difference the 40gb will make it.. i guess we will see next quarter.. when does it end? march?

 

[bill0527]

I see the people on the first page utterly failed Accounting 101.

Goodwill in no way shape or form is moneyhatting.

First off, goodwill is on the asset side of the balance sheet, meaning that it is something that Microsoft owns already.

Moneyhatting would be on the liability side of the balance sheet. Something that Microsoft paid out for a service or future consideration.

Goodwill, which everyone seems to be incorrectly associating with moneyhatting is defind by FASB as :

In a simplified way, goodwill is the difference between the amount a corporation is paying for an investment in another company and the book value of the acquired firm or of the shares which had been acquired. Goodwill includes therefore the value of the so far invisible intangible assets of the acquired firm (or of the part of it that has been acquired) which have been now uncovered by the transaction.

http://www.fasb.org/st/summary/stsum142.shtml

In English, goodwill is when you buy a company for a certain price, i.e. the book value, but the company has certain intangible assets such as a brand name or a trademark that you can't put a dollar value on for accounting purposes. Yet the trademark and branding does have some inherent value, therefore the difference between the book value of a company's physical assets and its intangible trademarks, is called Goodwill.

 

[DC R1D3R]

great stats for MS, well deserved IMO. It's encouraging to see that they've stuck to their tasks and have finally come through with the results, despite all the backlash and doubters. With Nintendo and Microsoft sitting pretty comfortably at the moment with hardware penetration, Sony must surely be sweating bullets right about now?

 

[titiklabingapat]

Wow, Nintendo's forecast of 10M Wii's in the next 6 months seems decent and humble by comparison to Sony and MS' 9M each in the same time period :lol

 

[mood]

great stats for MS, well deserved IMO. It's encouraging to see that they've stuck to their tasks and have finally come through with the results, despite all the backlash and doubters. With Nintendo and Microsoft sitting pretty comfortably at the moment with hardware penetration, Sony must surely be sweating bullets right about now?

Going by their actions, yeah.

 

[Domino Theory]

Some refer to around here as; Bitter Tear Frosting.


Just saying.

Hey, that's NeoNemesis's saying! :lol

 

[Version 3.0]

So this is their second profitable quarter, right? Might be their first profitable year. It's been really obvious that they're focused on profitability above pretty much everything else this gen. Ironically, they'd probably have made it before now if they hadn't short-changed the original manufacturing of the 360.

I wonder if hard drive prices will come down once they're profitable all the time...

 

[Shanks]

Is it just me of or does it seem like Xbox 360 sales have slowed down considerably since the launch of the other two systems? It might just be me..

 

[Arsenal]

Is it just me of or does it seem like Xbox 360 sales have slowed down considerably since the launch of the other two systems? It might just be me..

Yeah, you can check the latest NPD numbers to see how badly the 360 is tanking.

 

[plagiarize]

Is it just me of or does it seem like Xbox 360 sales have slowed down considerably since the launch of the other two systems? It might just be me..

it isn't just you. lots of other people are wrong too.

 

[CassidyIzABeast]

Yeah, you can check the latest NPD numbers to see how badly the 360 is tanking.

we all halo 3 is the one and ONLY reason the 360 sold that many consoles at once

MS originally predicted 9 million sales by time the ps3 launched...they just barely reached a million + more than 9 mill in a years time. The sells have slowed believe it or not.

 

[Ninja Kn1ght]

Microsoft's consumer hardware products may experience quality

Let us hope.

 

[Gadfly]

Wow, Nintendo's forecast of 10M Wii's in the next 6 months seems decent and humble by comparison to Sony and MS' 9M each in the same time period :lol

Do you have a link to MS projection that they will sell 9 million in next 6 months?

 

[plagiarize]

we all halo 3 is the one and ONLY reason the 360 sold that many consoles at once

MS originally predicted 9 million sales by time the ps3 launched...they just barely reached a million + more than 9 mill in a years time. The sells have slowed believe it or not.

someone get this guy the figures for how many 360's have shipped in the year since the ps3 and wii came out and the 360's first year.

 

[AstroLad]

:lol I can't beleive MS is predicting they're going to sell 15m in the next four months and 25m in the next twenty fortnights.

 

[FrankT]

:lol I can't beleive MS is predicting they're going to sell 15m in the next four months and 25m in the next twenty fortnights.

I know right, I mean, awesome.

Spoiler

Don't ever leave this place.

 

[plagiarize]

okay. did it myself. in the first 4 quarters that the 360 was on the market microsoft shipped 5.9 million 360s. in the last 4 quarters microsoft shipped 7.5 million 360s.

in other words, JUST AS WAS THE CASE WITH THE PS2, when the rest of the competition showed up sales INCREASED.

 

[Proelite]

Damn my MS stocks at a 5 year high. It was at 32.00 early today. O.O

 

[FrankT]

Damn my MS stocks at a 5 year high. It was at 35.00 early today. O.O

Yup, nearly 3 and half bucks in after hours, not too shabby.

 

[titiklabingapat]

Do you have a link to MS projection that they will sell 9 million in next 6 months?

I was just going by that ZZorazam's post and assumed he was right(ass, u, me, I know). I want a link, too.

 

[Meier]

It's probably 10million worth of Zunes they've given away on club.live.com.

Holy shit, I've never heard of this. I've won like 50 bucks off Blingo (havent used it in forever), but if I can guarantee I win stuff over time, I'd use this all the damn time.

Aww bummer, I thought searching gave you tickets. Having to play games to earn them blows.

 

[Maxwell House]

:lol I can't beleive MS is predicting they're going to sell 15m in the next four months and 25m in the next twenty fortnights.

Price drop to $99 is coming, with Halo 3 thrown in.

 

[frankthurk]

okay. did it myself. in the first 4 quarters that the 360 was on the market microsoft shipped 5.9 million 360s. in the last 4 quarters microsoft shipped 7.5 million 360s.

in other words, JUST AS WAS THE CASE WITH THE PS2, when the rest of the competition showed up sales INCREASED.

ugh how do you format this....

Period Quarter 2006 2007 2008
Jul-Sep Q1---------------0.9-----1.8
Oct-Dec Q2------1.5-----4.5
Jan-Mar Q3------1.7-----0.5
Apr-Jun Q4 -----1.8------0.7
Total--------------5-------6.6------1.8

dash formatting, sweet!

Are these accurate? If so then weather or not it dropped depends (as just about always) on how you massage the numbers. Q2 07 is where all the sales are but at the very least, Q1 2008 is double Q1 2007.

 

[titiklabingapat]

okay. did it myself. in the first 4 quarters that the 360 was on the market microsoft shipped 5.9 million 360s. in the last 4 quarters microsoft shipped 7.5 million 360s.

in other words, JUST AS WAS THE CASE WITH THE PS2, when the rest of the competition showed up sales INCREASED.

It could simply mean that they got thier manufacturing capacity in order since the 360 was heavilly supply contraint in the first 2-3 quarters.

 

[JCBossman]

Unless Zune is draining so much money, I doubt that's the case.

Though I'm sure Xbox division will be profitable this year as they seem extremely commited to be so.

I can't imagine that the Zune devision is loosing much money, they defiantly aren't losing money on the Zune hardware, and well sure getting a D/L music site up and running costs some bucks but once it's operational ongoing costs I imagine are pretty low.

 

[plagiarize]

It could simply mean that they got thier manufacturing capacity in order since the 360 was heavilly supply contraint in the first 2-3 quarters.

the guy said sales had slowed since the PS3 and Wii came out. even if they were held back in the first year due to supply constraints, sales haven't slowed.

that is why i 'massaged the numbers' into the four quarters where the wii and ps3 weren't on the market and the four quarters where the wii and ps3 were.

 

[Shanks]

I didn't mean to downplay the sales of it or anything. It was just something that bothered me. I most likely felt that way due to the ZOMGWTF sales of the Wii during the time.

 

[Adam Blade]

I can't imagine that the Zune devision is loosing much money, they defiantly aren't losing money on the Zune hardware, and well sure getting a D/L music site up and running costs some bucks but once it's operational ongoing costs I imagine are pretty low.

I shake my fist at you!

 

[chespace]

I shake my fist at you!

You are a looser!

 

[hadareud]

You are a looser!

couldn't of said it better myself

 

[JoshuaJSlone]

A couple million ahead of where Xbox was at the same point. The next quarter should spike it even higher.

 

[CaptainABAB]

Some highlights:

* MS profit climbed to $4.29 billion from $3.48 billion during the same period last year

* Results beat Wall St expectations: 45 cents per share vs. 39

* Revenue grew 27 percent to $13.76 billion from $10.81 billion in the year-ago quarter, beating analysts’ forecast by more than $1 billion.

* business unit responsible for Vista contributed $4.14 billion in revenue in the quarter, 25 percent more than a year ago

* sold 85 million copies of Vista since it went on sale in Jan — 25 million since the end of July

* booked 27 percent more annual license agreements for Windows than in the year-ago quarter

* Sales from the unit that makes the Office 2007 software suite rose 20 percent to $4.11 billion

* entertainment and devices division had a profit of $165 million in the quarter. Revenue rose to $1.93 billion, including $330 million from “Halo 3,” nearly twice last year’s quarterly sales. In a conference call, Microsoft said it sold 1.8 million Xbox 360 consoles in the quarter.

* Microsoft raised its guidance for the fiscal year, saying it expected to earn $1.78 to $1.81 per share on revenue of $58.8 billion to $59.7 billion. Earlier, the company predicted it would earn $1.69 to $1.73 per share on $56.8 billion to $57.8 billion in sales.

 

[ParticleReality]

http://biz.yahoo.com/prnews/071025/aqth132.html?.v=17


Press Release Source: Microsoft Corporation


Microsoft Reports 27% Revenue Growth; Fastest First Quarter Since 1999

Looks like Entertainment and Devices Division was profitable $165Million

Fuck yes. Long live the Xbox BABY!

 

[SRG01]

Not only Bungie, Bizarre and Bioware are no longer on MS's payroll as well.
MS is going great and finally making some money.

This is a good point.

On the other hand, it would be pretty naive for anyone to say that MS isn't providing some kind of financial incentive or some type of deal to them.

 

[Domino Theory]

Some highlights:

* MS profit climbed to $4.29 billion from $3.48 billion during the same period last year

* Results beat Wall St expectations: 45 cents per share vs. 39

* Revenue grew 27 percent to $13.76 billion from $10.81 billion in the year-ago quarter, beating analysts’ forecast by more than $1 billion.

* business unit responsible for Vista contributed $4.14 billion in revenue in the quarter, 25 percent more than a year ago

* sold 85 million copies of Vista since it went on sale in Jan — 25 million since the end of July

* booked 27 percent more annual license agreements for Windows than in the year-ago quarter

* Sales from the unit that makes the Office 2007 software suite rose 20 percent to $4.11 billion

* entertainment and devices division had a profit of $165 million in the quarter. Revenue rose to $1.93 billion, including $330 million from “Halo 3,” nearly twice last year’s quarterly sales. In a conference call, Microsoft said it sold 1.8 million Xbox 360 consoles in the quarter.

* Microsoft raised its guidance for the fiscal year, saying it expected to earn $1.78 to $1.81 per share on revenue of $58.8 billion to $59.7 billion. Earlier, the company predicted it would earn $1.69 to $1.73 per share on $56.8 billion to $57.8 billion in sales.

*Due to profits achieved in the EDD, Microsoft will begin acquisitions of independent gaming studios ranging from different prices.

Where's that fact on there ?

 

[FartOfWar]

The fact that there's a thread for this is tragic.

 

[legend166]

The fact that there's a thread for this is tragic.

thisisneogaf.gif

 

[plagiarize]

The fact that there's a thread for this is tragic.

there are threads for Nintendo's and Sony's results as well. better go post in them too.

 

[FrankT]

o On top of that, Xbox 360 continues to drive third-party game sales across all platforms. Since November, third party partners have seen their titles hit the top ten 27 times for Xbox 360, compared to 2 for PS3 and 1 for Wii according to NPD.

Haha, MS still hitting hit home. Still the 3rd party moneymaker.

http://gamerscoreblog.com/team/archive/2007/10/25/554215.aspx

 

[CaptainABAB]

From the gamerscore blog:

Additionally, starting with “Madden NFL 08” (EA), we have an unprecedented string of titles that should each sell at least a million units, including “BioShock” (2K Games), the record breaking “Halo 3” (MGS), “Project Gotham Racing 4” (MGS), “Mass Effect” (MGS), “Guitar Hero III” (Red Octane/Activision) and “Call of Duty 4” (Activision). These titles make up the greatest holiday line up in video game history and it’s only available on Xbox 360.

Well, I guess we now know which 7 titles they expect to hit 1M. (unless this is old news and I missed the info)

 

[RSTEIN]

Now that the serious topic of analyzing MS' financial statements is done with, let's move on to what was really behind the 360's popularity this quarter:

Bottom line: The 360's success this quarter is probably due to the steady stream of awesome Forza 2 DLC. It really is setting the standard for DLC awesomeness. Wow, I really feel I am getting a bang for my dollar.

 

[Prine]

So they finally made money with Xbox? Fantastic news, should continue to secure investment into gaming division.

Well done MS!

 

[JCBossman]

You are a looser!

Fuck you too:lol At least I USE a spell checker, but I really should check to see what they are replacing it with.

 

[Prine]

Not as high. There was only one release of Halo 3 scheduled for this decade AFAIK.That official?For how long?Other things cost money, too. Ya know, making games and stuff.

MS have proper wounded this kid by profiting.

 

[FrankT]

Hey, that's NeoNemesis's saying! :lol

Well, Neo did get that saying from yours truly. Of course, I got it from here, so I have to give credit where credit is due.

 

[Fatghost]

MS have proper wounded this kid by profiting.

Poor guy

 

[GavinGT]

Microsoft Corporation
    Balance Sheets
    (In millions)

                                               September 30,         June 30,
                                                   2007              2007 (1)
                                                (Unaudited)
    Assets
    Current assets:
     Cash and equivalents                           $6,637            $6,111
     Short-term investments (including
      securities pledged as
      collateral of $2,696 and $2,356)              14,937            17,300
       Total cash and short-term
        investments                                 21,574            23,411
      Accounts receivable, net of
       allowance for doubtful
       accounts of $133 and $117                     8,982            11,338
      Inventories, net                               1,178             1,127
      Deferred income taxes                          1,571             1,899
      Other current assets                           2,548             2,393
       Total current assets                         35,853            40,168
    Property and equipment, net                      4,615             4,350
    Equity and other investments                     9,707            10,117
    [b]Goodwill                                        10,151             4,760[/b]
    Intangible assets, net                           1,718               878
    Deferred income taxes                            1,587             1,389
    Other long-term assets                           2,014             1,509
        Total assets                               $65,645           $63,171

Am I reading that wrong, or is that $10 million worth of moneyhats?

EDIT: errrr.... I am reading that wrong, thats 10 THOUSAND million worth.

:O

Those are their contributions to society.

Spoiler

Am I really the first to do this?

 

[Xekrn]

So awesome.

Wonder if the game division can keep profitable through out next year.

 

[FFChris]

Same old crowd coming in and trying to spin the numbers. Can practically guess the names before you get in the thread. I love you guys. :lol