Xbox Could Hit Microsoft's Revenue In Report Thursday

While Microsoft Corp.'s (MSFT) fourth quarter revenue is expected to come in around US$13.25-billion on Thursday, RBC Capital Markets analyst Robert Breza thinks his US38¢ per share non-GAAP estimate may be low. In a note to clients, he said the actual result would probably come in closer to the Street's estimate of US39¢.

However, his GAAP earnings estimate has been reduced to US31¢ per share from US39¢ as a result of the US$1.1-billion charge Microsoft incurred for replacing warranties and repairing problems with its Xbox video game console, Mr. Breza said.

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donscrillinger4165d ago

wow.i just want 3% of that plz!!!!!!!!!!!

BIadestarX4165d ago (Edited 4165d ago )

Heck... I wouldnt have a problem investing US$1.1-billion from US$13.25-billion on a product that has the potential of bringing 10 times that amount and is able to create lots of revenue streams to the company and expands the company to people's living room and not only their offices or computers. Heck this is a small price to pay when someone compare the potential that only IPTV can have to the Per share value. Besides what's microsoft going to do with US$13.25-billion if they don't invest it in new ventures? I think with so many competitors in the market (linux, unix, oracle, Google office, etc) microsoft needs to try to find other revenue streams and not sit on their hands and wait until they don't have anymore products to sell. Trust me.. Microsoft does not have a problem on investing on the xbox 360. Sorry for those that want microsoft to quit on the xbox 360... not going to happen.. too much potential on people's living room... and now that they know they are able to sell consoles, gained 3rd party game developer support, stablished xbox live community willing to pay for xbox live gold, stablished movie marketplace, making deals with companies like NetFlix and brining IPTV (And all that was accomplished against all odds... against Sony which was king last gen, no brand recognition, hardware issues) one can only imagine where the xbox 360 would be if RROD never happened.... nahhhh.... too much at steak.... not going to happen. All microsoft has to do is fix RROD (with they are doing with falcon), continue what they are doing with the games and the service... and people will not even remember they spent US$1.1 bil...

sajj3164165d ago

a 1.1 billion dollar hit and still survive. There is no doubt in Microsoft's commitment to Xbox 360 gamers. What I do have a doubt on (if I were a shareholder) is its ability to be profitable. All this revenue attained through download-able content and yet they incur a 1.1 billion dollar hit because of hardware issues. If there is anything they've learned this generation, its to take care of your hardware.

Itachi4165d ago (Edited 4165d ago )

they have been taken hits on the orginal xbox a few billions and they did not make profit

they have taken a 4 billion dollar hit on the xbox360 and a now a further 1 billion hit on warrentys

i think micorsoft has only few options

1: support the xbox 360 a few more years then release xbox 720 but the new xbox 720 will be profitable just like the wii from day 1

2: enough is enough cut all ties and losses with the xbox 360 and continue sporting games for window release LIVE on PC and media centres and distribute downloadable content

FreedomReign4165d ago

360 as strictly a marketing tool, is worth a lot more to MS than the .08 per share this analyst is predicting.

Guys like Breza and Pachter are of the same breed. Don't they ever tire of being wrong, and irrelevant?

PS360WII4165d ago

yea regardless of whatever hits they continually take on the 360 towards MS's full revenue is not even considered. Like Blade said it's all about bringing out a product to invade everyones living room. Yes Windows is still the OS to have but people are starting to get involved with other OS's out there so you have to broaden your horizons before you don't have the market you once had. Xbox name is no where close to being a thing of the past.