Xbox Turns A Profit

re: Xbox Turns A Profit

Sharky — Sat, 26 Jan 2008 17:26:07 GMT

That's what I mean. How can they get away with saying they are profitable when the post billion dollar losses? I guess when you have a reset button every 3 months that is an easy task. And, how can you write off a continuing cost? The Xbox 360's are going to continue to break.

I guess when they say profitable, they mean, for that quarter; not the total sum. Thats a pretty weak way to show success.

re: Xbox Turns A Profit

ShapeGSX — Fri, 25 Jan 2008 21:51:32 GMT

Sharky, they didn't hide it at all. They wrote off 1 billion dollars in their Q4/07, which ended in June 07. Where have you been?

re: Xbox Turns A Profit

Sharky — Fri, 25 Jan 2008 15:56:16 GMT

I don't buy it. There is no way a division can have a 30% failure rate in its hardware and still turn a profit. I guarantee you they wrote off an assumed cost for this "soft recall" in another division last year, so it is not shown on this quarter/half. They are probably assuming in their figures that there are no more future failures. I always take profit announcements lightly, because they are usually skewed by divisional write-offs and hide administration costs. With a company as large as Microsoft, it is very easy to hide losses in other profiting or administrative divisions. It's a common and easy practice that all businesses do. And is very easy when your division is part of a multi bullion dollar profit company. All they have to do is say the failures are part of a continuing R&D initiative and put the costs there. Im not saying thats what they did, but it is an example of how easy true costs can be hidden.

re: Xbox Turns A Profit

Doctor Hoops — Fri, 25 Jan 2008 15:14:39 GMT

took so long because they sold the 360 hardware at a loss until recently - think its break even on that now. Also had a $1 billion write-off to cover all the RROD issues, and until this last fall/winter, there weren't that many gotta-have games to drive sales. If anything, they hit profitablilty faster than most people thought they would.

re: Xbox Turns A Profit

Soldan — Fri, 25 Jan 2008 10:23:40 GMT

Wonder why it took so long to make a profit. :P

re: Xbox Turns A Profit

AJ in HD — Fri, 25 Jan 2008 08:41:48 GMT

the market also seems to like this as their stock went up in after hours trading.