I wouldn't call scratching the media we put into our console is a they did good here. The little slot dvd is where we put are hard earned money into. I don't want it scratched.

If im not mistaken, when they said that the xbox was profitable, they meant that all costs incurred due to R&D, Manufacturing and RROD/E74 have been recuperated and sales are now generating profit.

Im no expert accountant (hell i only took my first accounting class last year...) but any RROD that happen in the present year should be counted as current operating expenses. So they put aside the one time liability to cover most costs for the first three years and any subsequent costs would only take a bite out of current year revenues.

After working in the brokerage industry for over a decade before my return to school to be a game programmer, I've poured through hundreds, if not thousands of financial updates. Microsoft keeps their 360 info pretty close, and to my knowledge have never claimed that the 360 is profitable unlike Sony who last year confirmed that the PS3 has been profitable as a platform for some time.

When a company claims they're profitable it in no way indicates that R&D expenses have been recouped or that past losses have been made up in any way. Indeed, just looking at Microsoft's EDD division they haven't yet come close to recouping their reported losses since the 360 launched with the profits they're currently reporting. On top of that, current profits made by the entire division seem to be unrelated to the 360 at all. Microsoft, while not reporting actual numbers, goes out of their way in the updates filed with the SEC that the profit in the EDD division is due to increases in "non-gaming revenue". As I pointed out in my earlier post, Microsoft has shown multiple back to back quarters of year on year declines in 360 sales, they're reporting decreased 360 hardware revenue and falling 360 sales revenue.

We really don't know what's going on behind the scenes because Microsoft doesn't release the specifics, however by setting up the 1 billion fund for warranty repairs, this would effectively keep RROD off the EDD books until the money runs out. If that billion is gone, then you're absolutely right, the cost of warranty replacements should be reflected in the EDD financial releases we see quarterly even if we can't see the amounts.

That was my point. We simply don't know what's going on. Investors often have short memories. I'm guessing not many look at the EDD's financial updates and say "Sure they're making 100 million now, but didn't they just have to write off 1 billion a couple of years ago for something? What happened with that?"

I guess my history in the brokerage industry just compels me to naturally ask those kind of questions when I'm considering investments for my portfolios. I may be training as a game programmer now, but I just can't turn it off after decade of scrutinizing financial reports. These are the type of questions I ask.

Because getting RROD isn't news to anyone anymore

Prevalence is the number of total occurrences in a population at any given time. Incidence is the number of new occurrences in a population over a given time period.

In the case of the 360 S I would imagine that the prevalence is really low considering there aren't many confirmed incidences and it has only been available for a couple of weeks. So ViciousBoston's assertion that the the RROD problem is a prevalent is ever is likely patently false in the context of the 360 S.

In the case of the original 360 the prevalence of RROD is relative, but over time the incidence rate will most likely rapidly taper off since that model isn't being produced any more. But in this context ViciousBoston's assertion is more credible, but not necessarily true since the timeframe wasn't well defined.

Statistical analysis is fun. Everyone should try it!

funny 1 xbox lover wants link and proof while the either says ylod is a known fact without question.

I have never had a yellow light issue. Ever!

Now the 360 I totally gave up on it until i bought my jasper unit which is the best version Ive ever owned.

I do have a problem now with my launch ps3 60gb. It will freeze up in about 10min even idling. fan works no ylod yet so i might trade it into gamestop for that promotion for a slim. well see.