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Xbox Live et al. Brightens Microsofts Financial Future

"Microsoft has a lot more than just Windows 7 going for them these days. Believe it or not, it's Entertainment that appears to be a huge factor for Microsoft, who reported earnings of 4 billion in Net profit for Q3 2010. Things are looking pretty good for Microsoft with this increase of 35% over last years Q3 filings as they head into Q4 now."

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cain1412981d ago

I'm currious to see how natal does.

BetaChris2981d ago

Natal, like any piece of hardware, is only as good as the software behind it. That said, with the number of developers onboard to support Natal, I doubt very much this will be an issue.

cain1412981d ago

It looks like there are some good things lined up.

thehitman2981d ago

If developers didnt want to make anything for the eyetoy nothing will be done special for natal especially w/ all the faults that it has.

Blaze9292981d ago (Edited 2981d ago )

That's not necessarily true. There was no real huge support for the EyeToy because there was no backing or marketing support from Sony - it pretty much came and went and no one cared or even knew about it. I mean FFS look at the number of games made for EyeToy, only 21 - only TWO which launched it's first year in 2003.

Microsoft is launching this thing like they launched the Xbox 360 with huge marketing behind it. So obviously developers should feel assured that any games they put on it people will actually know about it and buy it. Just awhile ago you had THQ talking about a $40 million project planned for Natal. On top of that, Natal isn't even limited to the 360 but Windows as well.

So no, you can't draw parallels of developer support with the EyeToy and Natal.

Brklynty12981d ago

It they put out a bunch of crap shovelware, then what's the use? Move and Natal will only be successful from its games.

Christopher2981d ago (Edited 2981d ago )

I don't get this article at all...

$4 billion revenue, $165m of that from the Entertainment and Devices division...

How the heck is that brightening their future? 4% is a bright future for a category that comprises multiple software/hardware sales?

Sorry, but Microsoft is still struggling with their 'Entertainment' divisions. But, they can afford to do that because their Office/OS divisions are pretty much solid monopolies in most businesses and homes today.

Too bad Sony doesn't have something like that to fall back upon, instead they spend so much money on R&D that it results in lower profits and even high losses each year. Dear Sony, stop freaking researching so much as once so you can actually post a gain, especially when 9 out of 10 research projects lead to nothing.

IdleLeeSiuLung2981d ago

Sony's problem isn't research. Research is an investment into the future.

Sony's problem is an unsustainable business plan! PS3 at $600? PSP Go for $250? In the first instance, they overpriced a product that wasn't going to make a profit for a long time. If they had huge sales, they would loose a lot of money. In the second instance they made sure to profit from their product, so much so that they alienated their customers.

Christopher2981d ago

@IdleLeeSiuLung: You do realize that the reason the PS3 was $600 was due to R&D, right? Blu-ray, Cell processor, all R&D elements that they spent billions on and were forced to put out a product with high price tags to cover the new part pieces and not even cover R&D.

Their problem is R&D. If they take what they have now instead of trying to continually create something new that will just result in higher initial costs and failures with the majority of the items for one reason or another, they'd be able to focus more on existing technology and getting it down to a price point that is desired and focus on building technology around those devices that aren't overpriced as well.

The PSPGO is the perfect example. More portable version of what is already selling poorly? Why is it necessary? It even created the need for a whole different set of accessories. Why the heck would you go ahead with that, invest all that money in its R&D, produce it at high prices, when your original isn't selling well enough on its own.

Sony is addicted to R&D. Microsoft just buys out the R&D from others.

IdleLeeSiuLung2981d ago (Edited 2981d ago )

A large part of the cost of the PS3 was not R&D. R&D is included on financial statements as a separate line item. Sony still after 3-4 years on the market is most likely unable to sell the PS3 at a break even cost, let alone profit from each machine sold to consumers. Not a great business plan if you ask me.

I'm talking about the manufacturing (and parts) cost of the PS3 that far exceeded the cost of the item being sold even when the price of said item is far more expensive than your nearest competitor. The investment into Cell and Blu-Ray is technology that is patented and produces a portfolio that increases the companies value.

A low (or non) profitable business only lowers the companies value.

PSP Go is an investment in trying to revitalize a slow selling product. Nothing wrong with that and what is a company should do. What is wrong, is the high price that very few is willing to pay for a lesser product. Poor business strategy at work again.

By the way, MS does some stupid stuff (RROD), but they sure made sure they can reasonably (from their standpoint) to profit from their products. It is also smart to buy others R&D that is potentially viable instead of trying to re-invent the wheel.

With that said, MS is among the companies that spend a heck load of money on research. All figures below are in the thousands!

2009
9,010,000

2008
8,164,000

2007
7,121,000

That is $9 billion in R&D in fiscal 2009! You telling me MS aren't researching?

Sony doesn't list their research number on their income statement. If there is anything at Sony, it seems they are investing in research in all the wrong areas and release a product that consumers aren't ready for.

+ Show (6) more repliesLast reply 2981d ago
Ziriux2981d ago

Natal will do good with the hype and marketing it's getting.

cain1412981d ago

The marketing really is going to be key.

ukilnme2981d ago

Looking forward to more great gaming and entertainment from my 360.

Halo3 MLG Pro2981d ago

The Xbox 360 is a wildly successful gaming machine. Definitely bringing in the big bucks for Microsoft.

Can't say the same for the ps3. :(

Lionhead2981d ago

There's that trolling of yours going yet again =\

MexicanAppleThief2981d ago

You know, I never really understood the fascination of supporting a company that only wants your money. I wonder what these kids get out of it?

digger182981d ago

Microsoft Xbox division lost over $4 billion on the first Xbox and these are the figures for the 360 so far:

2006 --$1.262 billion loss
2007 --$1.892 billion loss
2008 --$ 426 million profit
2009 --$ 169 million profit
2010 --$1.146 billion profit so far

So, going by this, Microsoft has still a very long way to go.

Hallmark Moment2981d ago (Edited 2981d ago )

Pretty interesting how >Lionhead< tries to come of as a gamer yet the only time you see him is when he is trolling 360 articles responding to 360 fans with an unnatural irritation. And please don't post pics of 360s your actions speak louder.

Good news for Microsoft. Natal will blow things out of the water.

Raf1k12981d ago

Well the kids don't really need to worry since it's their parents that pay for it.

Lionhead2981d ago

Oh shush you, he's not a "fan" he's a troll.

Hallmark Moment2981d ago

Apps aside, does anybody know anything about the Windows Phone 7? I'm thinking about getting a high end Iphone or this one.

fear882981d ago

I don't get why people feel the need to hype EVERYTHING from ANY COMPANY with absolutely NO KNOWLEDGE of the tech or games except the name of the company.

And another thing, when has MS ever delivered on a promise with the 360?

Just someone remind me what did they deliver because I cannot remember anything (seriously I have a crappy memory).

Halo3 MLG Pro2981d ago (Edited 2981d ago )

Lionhead, do you ever add anything useful to the article or do you just like to follow me around and post nonsense?

I was just commenting on the article and like I said, the 360 is a wildly successful machine profiting while the ps3 has not. You can go ahead and talk about numbers from last gen, I'm talking about this gen.

Bottom line, Sony destroyed itself trying to catch up to the 360 with numerous price cuts. 4 years later and it still loses money with every console sold. The 360 on the other hand profits. The ps3 is just digging Sony a deeper hole.

Just wait til Natal comes out. :)

Edit @ HallMark Moment,

Of course. Bashes 360 comments but not ps3 fans. Your typical ps3 fanboy in disguise.

Hallmark Moment2981d ago (Edited 2981d ago )

So I shouldn't get the windows 7 phone or the Iphone then?
LOL at the haters disagreeing.

@Halo3 MLG Pro

No all >Lionhead< does is go after happy 360 fans letting all the other guys do as they please with out mention. I guess in his mind owning a console gives him rights with impunity. Some how he has come to the conclusion I'm trolling when all my comments have been moderate comments in 360 articles lol

You should buy a PS3 and have at in PS3 rooms LOL I'm guessing people don't like the news in this article.

fear882981d ago

I think you did not read the profit of the Entertainment and Devices division correctly.

It was NOT $1.67 billion profit, that was REVENUE.

The profit was only $165 million.

And year over year that is a drop in profit from 2009 which was $169 million profit.

Lionhead2981d ago

It's hard to find an article that DOESN'T have either you (Halo MLG Pro) or (Hallmark Moment aka the new accounter).

You agreeing with MLG Pro known troll=loss of credibility

Go look through my comments, all my comments are where they belong and just because I argue with 360 fanboys means nothing. You do the same for the other camp, so stop acting like you are high and mighty. You already commented on me being a fanboy, yet I have all 3 consoles and play my 360 the most. I guess I am not allowed to comment on 360 articles then without bashing Sony like you two deliberately do.

+ Show (9) more repliesLast reply 2981d ago
Clumzyagent2981d ago

Microsoft will keep making money until the world is engulfed by the sun.

cain1412981d ago

Or Google buys the entire world...

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