There is no way they will bring in the same revenue---let alone income---while putting COD and other formerly profitable IP on GamePass.
You're mistaken because ABK is not as valuable in the hands of Xbox. Why? Because MS has discontinued retail and holds almost no marketshare outside North America, among other reasons. These limitations greatly devalue ABK's income potential---and therefore, depreciate ABK's value as an asset over time. This is probably why Amy Hood, MS CFO, sounded the alarm and convinced Satya to direct Xbox to put its software on Nintendo and Sony platforms after Starfield failed to immedia...
You're pretty cavalier for someone who doesn't interpret the numbers correctly. Nobody claimed MS doesn't make money. We've asserted that there is no evidence that Xbox makes money---which is supported by this very financial statement! In this document, we learn that Activision would have made ~$300M last quarter if it were still a separate entity. Bottom line: Xbox *may* post a small profit next quarter by absorbing Activision's income, but having spent $75B for it! ...
Phil Spencer supports his statement of the division's profitability using an MS-internal metric called 'accountability margin'. This is not an objective measure of profitability in the accounting world because it does not take into account fixed and sunken costs of doing business (e.g. the magical appearance of profit contributed by $80B of acquisitions that were not paid for by the Xbox division).
NOWHERE in the MS Q1 F24 financial statement is there any menti...
I think it would also help sales if publishers included/were incentivized to include the VR mode with the "flat" product release. Of course, I would prefer if such modes were included on disc, as done during the PSVR1 era. Retail presence and no-hassle co-installation, combined with the recent price drop, should provide some degree of enticement.
Could you please provide a source stating the "serious dough" (a.k.a. net income) generated by Xbox?
I'd say neither; it's a partial list of some of the PS2 games, with mixed quality.
Great news! I'd also like to see their PS VR2 experiences released on physical media.
You're making poor comparisons. The PC market is open and digital entitlements are limited rentals that do not even afford the same rights as do the purchases of physical products.
It's simply amazing to me how helpless 'digital-only' peeps are when it comes to the con. "It's the future"; "You can't fight it"; "the savings will be passed down to the consumer". Yeah right. How weak and gullible are you? More distribution options benefit all of us. Being old must mean we are of generations that actually fight for our consumer rights rather than deferring to the whims and greed of tech (cult) "leaders".
Phil's salary is not $10M either; that would be higher than anyone in MS' C-Suite. Some rando unvetted Twitter user is not a valid source for this kind of information.
Oh really? Below is a link to their Q3 F24 income statement:
https://www.microsoft.com/e...
Please point out where they state the net income of their Xbox division.
Margin on the non-day-one tier is likely much larger. They expect to lose some subscribers with the price increases, so they hope to retain existing/attract new players at the lower price-point. This is all centered around their futile attempt to reach 100M+ subscribers by 2030.
The people down-voting me do not understand executive compensation packages. Here is a thread discussing MS' executive compensation in 2017:
https://www.neogaf.com/thre...
Even if Phil's base salary were doubled over the past seven years, it's highly unlikely he's getting more than ~$1.5M/year. And that's assuming his mini-CEO r...
MS' scortched earth strategy: if we can't compete in and/or mould the console market, we'll try to monopolize its game development by buying major publishers; let's also make every effort to divert the console player-base back to the Windows PC space.
While I'm no a fan of MS, let's at least be accurate in our complaints, jabs, and insults. Nobody in the Xbox division is making anywhere close to that in salary. Given the division's poor performance, it's also highly unlikely that bonuses and options are anywhere close to that.
This announcement has nothing to do with pressed media products. Sony is simply discontinuing its recordable media products such as BD-R discs.
But you should buy the upcoming physical release of Alan Wake 2 to cast your vote in favor of physical media!
Not defending CEO pay, but stock awards != salary. This is not cash being diverted from paying developers to paying him.
Quite simply, something is only worth what someone else is willing to pay for it. MS severly overpaid for ABK; the excess is called "goodwill" in corporate accounting. MS will eat that goodwill margin. No other company on this earth will pay $75B to buy ABK. Therefore, ABK has already depreciated in value.