If I was a shareholder, I'd be wondering what did EDD spend $2.5B on in the quarter? Are they selling each Xbox at a loss? How many Xboxes have actually been sold (vs sitting in warehouses)?
And if the Xbox 360 is supposed to be the living room beachhead, what is MS doing to make the Xbox attractive to people other than 15-24 yr old male gamers? Altho MS may have a 10m unit lead in units sold, once Apple rolls out the next step in its iTunes/Apple TV strategy, it won't be long before the Apple TV passes the Xbox 360 in actual units sold.
"Worse, the Entertainment and Devices Division (EDD) lost $1.5 billion on revenue of $947 million. Double Ouch."
The Entertainment and Devices Division lost $135 million.
http://www.microsoft.com/msft/
ea..._rel_q3_07.mspx
Please don’t make me read Microsoft's earnings ever again.
I mean $315 million. Where did the $1.5 billion figure come from?
Hi,
You are so correct. My apologies. I have corrected the posting and noted that I was wrong before. I was reading the reconciling amounts in the SEC filing (1.5 billion) instead of the EDD amount. Got the revenue right, but the income/loss wrong.
As you note, the Microsoft SEC filings aren't exactly easy to wade through. And there are lots of little accounting details that modify the results. The fact that they reorganize the groups every few years doesn't help either.
Thanks so much for the correction, and my apologies for the error.
Carl
How many of the 500,000 were the Elite announced just before Quarter end? Given the large inventory held by retailers at the beginning of the Quarter and lacklustre sales recorded by NPD in the US (the 360's largest market) in Q1, its easy to suspect that most if not all were. An attempt to give 360 some momentum or more channel stuffing?
Commenting by HaloScan
