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[zomgbbqftw]

Taken from their 10K filing;

"Computing and Gaming Hardware revenue increased $3.2 billion or 49%, primarily due to higher revenue from the Xbox Platform and Surface. Xbox Platform revenue increased $1.7 billion or 34%, due mainly to sales of Xbox One, which was released in November 2013, offset in part by a decrease in sales of Xbox 360. We sold 11.7 million Xbox consoles during fiscal year 2014 compared with 9.8 million Xbox consoles during fiscal year 2013. Surface revenue increased $1.3 billion or 157%, due mainly to a higher number of devices and accessories sold.

Computing and Gaming Hardware gross margin decreased slightly, due to a $3.2 billion or 59% increase in cost of revenue, offset in part by higher revenue. Xbox Platform cost of revenue increased $2.1 billion or 72%, due mainly to higher volumes of consoles sold and higher costs associated with Xbox One. Surface cost of revenue increased $970 million or 51%, due mainly to a higher number of devices and accessories sold, offset in part by a charge for Surface RT inventory adjustments of approximately $900 million in fiscal year 2013."

This is on a gross margin basis as well so the operating loss is probably much higher.

Taken from here:

http://www.shareholder.com/visitors/activeedgardoc.cfm?f=rtf&companyid=MSFT&id=10123079 (link opens a Word doc).

 

[MMaRsu]

Holy shit thats quite a lot.

 

[aygomyownroad]

Wow. Just as well they have the funds to support such a loss.

What about xbox live though? I thought that did well for them

 

[Savitar]

Not many can afford such an undertaking, they're one of the few that could.

But I highly question if they will do it again with their new guy in charge.

 

[Skele7on]

Damn son, that is a lot of money lost.....

Even more than Nintendo.

 

[HORRORSHØW]

daaaaamn.

 

[Impeccable]

It's okay, it'll come around now any time...

 

[Spiegel]

Xbox platform.

360 is profitable, so Xbox One lost more than $400M

 

[DieH@rd]

Its a lot, but I making money directly after console launch is not easy.

 

[dannethmps]

ouch

 

[orochi91]

I can't imagine there being a successor to the XB1. A dedicated gaming console
from MS seems outlandish in the long-term. They'll probably shift focus to PC
development.

 

[munroe]

This is just hardware. Don't companies generally sell the console at a slight loss then recoup the costs in software sales? As mentioned above, Xbox live subs probably rakes in a fair amount but because it's software it won't come under these hardware figures.

 

[Freeman]

MS was spending money like crazy, I'm surprised they didn't lose more money.

 

[Taker34]

Its a lot, but I making money directly after console launch is not easy.

*if you're not Sony.

 

[MormaPope]

Back in them original Xbox days. Except this time around the hardware isn't better than the rest.

Last year was a fucking travesty for the Xbox brand.

 

[Amir0x]

A lot of money indeed. As always, internally there has been quite a lot of talk about the Xbox division needing to shape up, so this sort of stuff never looks good.

 

[gundamkyoukai]

There is no way MS can do any more price drops fast unless they going to pull a Sony and lose billions.
Things just going to get worst when more and more people stop paying for live , it's like there back to Xbox days.

 

[SparkTR]

I'm wondering when their Xbox experiment is going to pay off. Seems like they sunk billions into the original Xbox for a future that will never be realised, if only they knew then what they know now.

 

[foxbeldin]

It's not like they're not used to it with xbox branch..

 

[Spider_Jerusalem]

I can't imagine there being a successor to the XB1. A dedicated gaming console
from MS seems outlandish in the long-term. They'll probably shift focus to PC
development.

I remember hearing such things during the original Xbox run.

 

[Taurus]

So Nintendo lost a few hundred million dollars, MS lost 400 million and Sony made 30 million profit?

Sounds like a healthy industry to me for sure.

 

[PetriP-TNT]

It wouldn't be a Microsoft Hardware ^TM if it didn't bleed money

 

[orochi91]

I remember hearing such things during the original Xbox run.

I'm just not convinced Nadella is loose with money like Ballmer was.

 

[DSN2K]

That's alot better then their previous launches I believe

 

[MormaPope]

So Nintendo lost a few hundred million dollars, MS lost 400 million and Sony made 30 million profit?

Sounds like a healthy industry to me for sure.

To me it sounds like 2003/2004/2005. Except with greater losses this time around.

 

[OdysseusVA]

Nice

 

[jem0208]

Does this include software sales and XBL?


Because that's where the majority of the money comes from right?

 

[SparkTR]

I remember hearing such things during the original Xbox run.

During the original Xbox years Microsoft was under the impression that living room computers would be the market that would challenge their Windows empire, they were dedicated to it. That market turned out to be Mobile. With the Xbox One they're stuck in a low-margin, unprofitable rut that they didn't expect back then.

 

[gundamkyoukai]

That's alot better then their previous launches I believe

Previous launches did not have all that live money to help.

 

[coughlanio]

Previously unhappy shareholders are now going to be even more unhappy.

 

[BigDug13]

It's not like they're not used to it with xbox branch..

Except for that segment of gamers that used to clamor for the brand because it was definitively (on average) the best console brand for game performance. Until now. Losing that one feather in the cap hurts while being the biggest money loser.

 

[Hydrargyrus]

Xbox platform.

360 is profitable, so Xbox One lost more than $400M

That's it.

Xbone losts are 400m $ plus the 360 benefits

 

[Hesemonni]

Huge launch costs for MS if they didn't even manage to come close to breaking even even with record sales. Wow.

 

[meppi]

Well deserved!

 

[zomgbbqftw]

Xbox platform.

360 is profitable, so Xbox One lost more than $400M

Indeed, but $400m is a hard figure, anything else is guess work.

 

[Xater]

That's definitely ammunition for the people within MS who want to spin the division off.

 

[Jimmyfenix]

Well deserved!

What !?

 

[Psycho_Mantis]

So Nintendo lost a few hundred million dollars, MS lost 400 million and Sony made 30 million profit?

Sounds like a healthy industry to me for sure.

Isn't the $400 million loss for the entire fiscal year.

Isn't Sony's profit of $40 million just one Q.

 

[unknownstranger]

All of that with the NFL deal.

Spoiler

Kidding obviously.

 

[derFeef]

That's a lot of money.

Nice

Well deserved!

Huh.

 

[mrklaw]

I can't imagine there being a successor to the XB1. A dedicated gaming console
from MS seems outlandish in the long-term. They'll probably shift focus to PC
development.

Not sure how cheap you can get windows RT hardware, but they could have made a cheaper google TV style box - keep the HDMI passthrough so they can do skype notifications and overlays etc, but focus more on living room/media apps and information - forget the high end games.

an always-on box which can pipe information onto my TV screen while I'm watching TV, has cortana built in, skype/youtube/netflix/amazon instant video etc would be pretty interesting for me

 

[meppi]

What !?

People say that all the time when a product that deserves to do well does great, so I'm saying it now as well.
They fucked everything up, they deserve the egg on their face.

 

[Hoo-doo]

There's been lots of speculation that Satya Nadella isn't interested in doubling down on unprofitable hardware anymore like previous CEO's were.

I doubt they are going to drop the price even further like a lot of people are expecting them to.

 

[zhao3gold]

So, the cost increased due to higher volumes of hardware sold? Does it mean sell more, lose more?

How Sony managed this part? I remember they also sell PS4 with a slight loss...

 

[Vice]

Seems to be the norm for the launch of an Xbox platform. Didn't the 360 lose nearly close to a billion in its first few years?

 

[zhao3gold]

Well deserved!

This kind of fanboyism needs to be killed.

 

[tuna_love]

Seems to be the norm for the launch of an Xbox platform. Didn't the 360 lose nearly close to a billion in its first few years?

Was that because of red ring?

 

[BGMNTS]

How on Earth did they even manage that? Kinect?

 

[Ghost Slayer]

All of that with the NFL deal.

Spoiler

Kidding obviously.

the NFL deal was 400mil, right?

 

[shacklesmcgee]

Woooow, includes live subscriptions

Computing and Gaming Hardware
The principal products and services provided by the Computing and Gaming Hardware segment are: Xbox gaming and entertainment consoles and accessories, second-party and third-party video game royalties, and Xbox Live subscriptions (“Xbox Platform”);