Xbox One Lost About $400,000,000 in Gross Margins for Microsoft During Latest Fiscal Year

[Xsilent(X)]

 

Microsoft posted its annual 10-K report (a document required by the U.S. Securities and Exchange Commission, that gives a summary of a company’s finances for the year) for the fiscal year that ended on June 30th, giving an interesting bird-eye view on the costs related to the launch of Xbox One.

 

 

Computing and Gaming Hardware revenue increased $3.2 billion or 49%, primarily due to higher revenue from the Xbox Platform and Surface.

Xbox Platform revenue increased $1.7 billion or 34%, due mainly to sales of Xbox One

, which was released in November 2013, offset in part by a decrease in sales of Xbox 360. We sold 11.7 million Xbox consoles during fiscal year 2014 compared with 9.8 million Xbox consoles during fiscal year 2013. Surface revenue increased $1.3 billion or 157%, due mainly to a higher number of devices and accessories sold.

 

Computing and Gaming Hardware gross margin decreased slightly, due to a $3.2 billion or 59% increase in cost of revenue, offset in part by higher revenue.

X

box Platform cost of revenue increased $2.1 billion or 72%, due mainly to higher volumes of consoles sold and higher costs associated with Xbox One

.

Surface cost of revenue increased $970 million or 51%, due mainly to a higher number of devices and accessories sold, offset in part by a charge for Surface RT inventory adjustments of approximately $900 million in fiscal year 2013.

 

 

 

http://www.dualshockers.com/2014/08/08/xbox-one-lost-microsoft-400000000-during-last-fiscal-year/

 

 

 

[RelentlessAF]

What's sad about all of it is how little Microsoft cares about the losses in the Xbox division. So this won't even change anything, they'll just keep being Microsoft.

[Askew]

[ZetZet]

And that's why console is not dying I guess.

[MattP123]

They just lost 40,000,000 pizzas. 

[Sauron]

Serves them good. I hope there won't be another xbox and they'll focus fully on pc as they should have from the beginning.

[Trik'Stari]

[2k2jet]

Serves them good. I hope there won't be another xbox and they'll focus fully on pc as they should have from the beginning.

 

Meh.. You need competition period. Whether it be consoles, or PC's. No competition would just cause a stagnate market with over priced/out-dated hardware. Competition is what drives the developers to 1uP themselves.

[Xorbot]

With margins like that, calling them gross is a perfect adjective.

[ajoy39]

Yeah that's how consoles work. They take loses on the hardware to make the money up on software licensing. 

[Sauron]

over priced/out-dated hardware

 

Current consoles in a nutshell. Pc gaming needs no external competition as there is no single manufacturer that dictates how pcs are made, their price and who can develop games for them. The ps4 already has a great opponent in pc gaming. The wii u does pretty much its own thing so it already has the monopoly in a sense, but nobody would buy it at a higher price because again, pc is a thing and although nintendo has epic exclusives there is a limit to what people will pay for them, especially considering that the wii u isn't very powerful.

[vt3c]

[PortentousLad]

Hmmm I remember people calling my a stupid 12 year old after calling the xbone a failure, guess the joke's on them now.

[rashdanml]

Everyone knows the consoles aren't meant to profit - they make it all back in game sales anyway. 

[Snickerzz]

They just lost 40,000,000 pizzas. 

now i want pizza

[Horrorfull]

Everyone knows the consoles aren't meant to profit - they make it all back in game sales anyway. 

Their games sales figures aren't doing so well either. *cough* Ryse

[killers993]

Really, the only reason why I want an xbone is for forza. 

[brownninja97]

i must admit when it comes to consoles i hate xbox the most for the pay for multiplayer bullshit

[ajoy39]

i must admit when it comes to consoles i hate xbox the most for the pay for multiplayer bullshit

Playstation does the same now. 

[brownninja97]

Playstation does the same now. 

Yes but i have the feeling that its because the xbox guys have been doing it for so long that sony thought it would be fine.

[AlwaysFSX]

Meh.. You need competition period. Whether it be consoles, or PC's. No competition would just cause a stagnate market with over priced/out-dated hardware. Competition is what drives the developers to 1uP themselves.

Nothing like having them compete to make the best looking game on PC. That'll make Nvidia and AMD not pull BS like releasing "top tier" cards without the full gpu core.

[ajoy39]

Yes but i have the feeling that its because the xbox guys have been doing it for so long that sony thought it would be fine.

It's because they both host dedicated servers for games. And that costs money. 

[brownninja97]

It's because they both host dedicated servers for games. And that costs money. 

either way i hope steam or origin dont dare try that, it would suck big time.

[jmaster299]

Serves them good. I hope there won't be another xbox and they'll focus fully on pc as they should have from the beginning.

Why, so they can bring all the bad decisions they made with XBox over to PC? Other than getting their act together with DX12, and making sure Windows remains game friendly, I want MS to stay out of the PC gaming market. Games for Windows Live was horrible.

[NoctHorn]

 

In all seriousness, SteamOS may put an end to the console craze.