Commenting on Microsoft's latest quarterly earnings report, respected journalist and Microsoft insider Paul Thurrott, had the following to say:
I'm sorry, this a few weeks old, but it's a very interesting quote, and I didn't find a thread with forum search. We often have discussions about whether or not Xbox is profitable (Microsoft certainly doesn't make it easy to answer that question) so I thought it would be thread-worthy. Close this thread and mock me for being a fanboyif you disagree and/or a thread has in fact been made.
One of the dirty little secrets of Microsoft's Xbox/gaming business is that it has never actually turned a profit. So I was curious to hear Mr. Nadella utter these contorted words last night: ”Our gaming business is now more than $9 billion, and growing profitably." So. $9 billion is revenues, not profits. So growing means that revenues are growing. And growing profitably means ... what? That the business is ”becoming profitable"? Or is it just growing revenues positively? Was this a misstatement? What does that mean? Here's my guess. He means usage and engagement are growing. Because I can state this with certainty: Microsoft's gaming business is not profitable. In fact, it's undergoing a digital transformation of its own.
(which I admittedly am)