ouch microsoft nail $5,24 billions in a quarter

"Microsoft has published its Q1 2014 earnings report, revealing that it made $5.24 billion in net income on $18.53 billion in revenue. Both are increases from this quarter last year, when Microsoft saw $4.47 billion in net income and $16.01 billion in revenue. "Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers," CEO Steve Ballmer says in a statement."

http://www.theverge.com/2013/10/24/5025382/microsoft-q1-2014-financial-earnings

i think Xbox future is bright in microsoft land

This isn't gaming related.

Most likely because Windows.

so with those pre order and sales bullshite

Ouch, PS4 is doomed

A small part of that must be about its gaming division

What else is new? MSoft prints money and is only second to the federal government in doing so.

Damn, that's good news for Microsoft. FInally turning around. I felt so burned by supporting them in the past with the Windows Phone 7-8, and the surface.

Typical. Clueless people misinterpreting financial information. Here's the most recent annual statement with information on different business segments:

http://www.microsoft.com/investor/reports/ar12/financial-review/notes/segment-information-geo-data/index.html

Xbox belongs in the Entertainment and Devices Division, which includes PC gaming related products. Although its revenue increased a lot over three years, its operating income dropped a lot.

In terms of profit, only the Windows and Business (i.e. MS Office) divisions are bringing in the big bucks. In 2012 the Windows division brought 11,908m operating income and the Business divsion brought 15,688m operating income. Xbox really is an insignificant pest in the grand scheme of things.

Playstation is also infinitesimally tiny in Sony as well. Gaming hardware (Playstation consoles and portables) and software (first party PS exclusives and PC MMOs from SOE) account for only 7.8% of Sony's total sales. The division barely made any profit in 2013, a sharp drop from 29.3 billion JPY (301m USD) to 1.7 billion JPY (17m USD). However, it's at least still making a profit unlike Sony's mobile and home entertainment devices, which gave Sony a combined loss of 181.5 billion JPY (1866m USD).

http://www.sony.net/SonyInfo/IR/financial/ar/2013/shr/pdf/AnnualReport_E.pdf

In conclusion, both consoles are faring poorly, but Playstation is on the brink of making a loss. Microsoft's current financials is almost fully contributed by Microsoft/Office (who'd expect?!), while Sony is losing almost as much money on its Mobile & Home Entertainment (two of its three largest divisions) as Microsoft is making with Windows and Office. The only reason Sony didn't just drop dead is because of its financial services segment, which contributed only to 15% of its sales yet is accountable for 151% of its net profit. How can it be 151%? Well, the other segments combined together give a huge loss, it's thanks to the 145.8 billion JPY (1499m USD) of profit from financial services that Sony didn't make another loss in 2013.

Sony is in pretty bad shape, but whether it survives or not will most likely not depend on the video game industry.

So MS gave us crappy products and made record profits.

We should be happy about that?

Crappy to you, but obviously not everyone else. Or do you think online gaming forums opinions of MS are the only ones people have?

Hell yes. Good return per share. Lovin it.

I believe I've given 0 American dollars to Microsoft this year.

they'll make more in profit this year than the remaining equity left in Sony, half of which has been designated as intangible "good will", and inflated accounting variable utilized to hide pending insolvency

And what does this mean for X1 gamers? Well:

- Inferior system
- Inferior exclusives
- Inferior controller
And inferior multiplats

@juarbles: When does Valve release its shareholder report?

They have no shareholders.

@edidili: Thanks for the earnest reply. My comment to juarbles was with sarcasm. Good day.

I always laugh at the doom posts about Sony.

Did you know that Sony's in the insurance business? Probably not, well that's their biggest income. Look at this video for more info. Sony is fine but not as big as in the past.

This explains why Microsoft wants to get rid of the Xbox division A burden to Microst and a burden to the game industry. RIP Xbox.

Read my post instead of skipping it, thinking you already know its content.

I pretty much wrote that the only reason Sony isn't dead is because of their financial services segment. Still, that's their only segment making a significant profit. They literally would be better off financially if they drop everything else.

They also make a lot of money with their movie/music branch.

Not really. All of the other profit-making segments combined together make less profit than their financial services. Then there's their mobile and home entertaining, which are draining more than half the profit the company makes. Overall though, the gaming division PS belongs in makes less than 2% of the net profit. Its net profit on the other hand is around 1.4% of its revenue. That's an astronomically low level of profitability.

I'll conclude with what I already wrote in my original post: Sony is in pretty bad shape, but whether it survives or not will most likely not depend on the video game industry.

Nothing good will come out of a multi billion company deciding to not invest billions in the gaming industry anymore. That is just money this industry will lose.

I feel that the only reason MS and Sony are still holding onto the gaming industry is because of pure greed. Both companies have suffered or are suffering from this decades-long console war, making significant losses along the way. At the same time, both companies also know that if the other company quits first the market will become a lot more profitable. And so they're just holding it out, not willing to waste so much on this product line of low profit, yet also not willing to give up the potential profit they'd gain if the other quit. 'Tis a truly vicious situation.

lol, at anyone boasting about ms sales after they made all that money last gen and come into this one with the weakest console, the least amount of launch games and the weakest first party development teams.

lol lems sales isn't much of an argument if the company who gets it only puts it in their pocket. Enjoy the idea of all the profits that the ms execs have from you buying the most expensive weaker powered bone, really something to write home about.

When two multi-billion companies compete with each other is usually the consumer that wins. I wouldn't want to see the day one of them decides to leave. MS 180 afraid Sony would win and Sony didn't release another pricey PS with lucklaster services for fear of losing to MS.

Would be crazy to wish one of these companies to leave. That's just billions that will not be invested in this industry anymore and it will hurt it not only in the $$$ that will not be there anymore but it will cause the lone winner to become arrogant quickly.

The situation is not necessarily that grim.

The video game industry is a very powerful industry - a constantly growing goldmine that has grown from absolute niche to one of the most popular and recognised means of entertainment. For example, statistics have shown that Australia has a gaming population of 70%, with 90% of homes possessing at least one gaming device.

While competition is in theory very good, here's a problem. Right now, a lot of the power rests with the console manufacturers. One thing we must realise is that they are not fighting to destroy each other. They are fighting to purely survive and waiting for the other to die - a war of attrition. As a result, there has been an increase of anti-consumer behaviours from both manufacturers - they are both trying to squeeze as much money out of the consumers as possible without pissing us off too much. Paid online gaming, anti-used game features, price gouging (especially in ANZ), etc. are all part of their strategies.

If one of the console manufacturer step out, nay, even if all console manufacturers step out, what will simply happen is one of the following: another manufacturer will take its place (Google, Apple, Samsung or the numerous PC manufacturers), or the power will transfer from the console manufacturers to the publishers and developers of video games. I hope that if/when the time comes, the latter will happen. A decade ago PC hardware manufacturers had a lot more influences than nowadays, but their power was taken away by Steam and given to the publishers and developers.

Oh get out of Microsoft's crotch and get with the times please, this coming from someone who uses windows os, and has a windows phone there is NOTHING better or best about their modern products. Windows 7 is whats raking in the profit, windows 8 and 8.1s receptions are low and is reflected in its penetration rate compared to xp and 7. because its crap, its win 7 with a mobile layer that has far worse functionality and support that iOS and Android. and most of the hybrid tablets are far too expensive and offer very little, to the point where its DUMB not to by a touch ultrabook over them.

Windows phone 8 is still crap. lets just say my level of buyers remorse after 7.5 and wp8 is HIGH.

Xbox has been behind PS3 for years in games now, and yet again im having trader-in-remorse.

Honestly, other than having to use windows for best overall desktop pc support due to THE OLD MICROSOFT NOTHING is worth having of theirs over the competition.

They are profiting more due to monetization of services like office which is now a sub like adobe, xbox live prints money because you morons made it happen. win 8 sold with every non apple pc (yet still doing poorly) windows 7is printing money because its actually what a new windows should of been.

so tell me, what do they lead in?

With microsoft now it seems they win and the consumor loses EVERY time. windows phone, windows 8, xbox monetization ..... my god they use to give skydrive 25gb for free.... oh how that went away quick.

I think you look at it a little grim. Sony's situation is OK.

Let's look at the facts: (source: the interview with Kaz Hirai I posted; it's from 5/2013 so still relevant)

Sony's profit (10 years)

Life insurance : + $ 9.07 Billion

Film and music : + $ 7 Billion

Electronics : - $ 8.5 Billion

So I don't really understand why you say that the Film and music branch is in bad papers. The only bad branch they have is the electronic branch, which they hopefully can turn around into something profitable. The new Xperia is selling well and PS4 seems to have a good future.

Conclusion: Sony as a whole is fine, yes their electronic branch isn't doing well but hopefully they can turn that around.

Oh we already prove that success on the console market doesn't depend on how did are your pockets.

1.4% profitability.

1.4% profitability.

I'm sorry, but there is no description in the world for it that is anywhere close to "fine". At the current rate they might as well turn into a life insurance company, or become a non-profit organisation.

If you're looking short-term then yes that number looks grim. But that's not the way to do business, it's a long-term venture.

And they made a profit of $ 7.5 billion the last ten years. Hardly grim imo.

And those shareholders who stayed with their 7.5 billion profit in the last ten years have either dumped their shares or regret that they didn't do it sooner. If we do any form of trend analysis, we probably won't get a curve any investor would be interested in seeing.

Look. Sony's profitability is so low, that even banks offer higher interest rate. Sony's profitability is so low, that it can't even catch up to inflation. Sony's profitability is so low, that... yep, this is turning into some twisted form of "yo mama" jokes.

Damn. And with Sony making a loss on every PS4 sold ... not looking good

Yet it was absolutely fine when cows made a thread saying that they lost such and such with the XBox

Agree that for shareholders Sony isn't really attractive. But if you know anything about stocks, economics,...you know that the value on the stockmarket doesn't represent the health of a company. Although it gives some indications.

And yes right now sony's profitability is low but that doesn't mean they can't turn that around in the future. Like I said it's a long-term venture. Sony is doing OK but not as good as in the past and that's why the stockholders left.

So saying that the company is doomed, is BS.

BS? Nay.

I'd say that on the balance of probabilities it is just as, if not more likely that Sony will die. I'd also think that judging by Sony's recent track record in the last 3 years, the massive drop in shareholder confidence and whatnot, while certainly not a guaranteed assessment, it is a pretty fair one.

However, please again refer to everything I've wrote thus far. Never once did I even suggest that Sony is doomed, which indicates 100% chance of failure.

Someone didn't read the link

Fair enough.

Sony won't go away anytime soon and are doing OK, but there is still a lot to improve regarding their electronics branch. IMO

All that money and no 1080p..

It's certainly making a profit for Microsoft. Although it declined by nearly 75% since last year, it's still a profit. Although it contributes less than 2% to Microsoft's profits, it's still a profit. It's not a burden, but it's certainly not a favoured son of Microsoft. It's starting to make meager profits now, but in the past decade it lost Microsoft billions of dollars.

Also talking about shareholders.

http://www.geekwire.com/2013/sherlund-microsoft-should-consider-selling-xbox-bing-businesses/

http://microsoft-news.com/activist-shareholders-may-force-microsoft-to-sell-xbox-bing/

Look at these articles. Some important shareholders want Xbox out of the company.

Seems that the Xbox division doesn't look that good. And we all know that the Xbone doesn't have a good public opinion thanks to DRM,... so its future looks grim.

Could be that we see Xbox leave the market sooner than playstation imo.

Well, if the division gets sold, there will be a buyer.

So in the end, it may not make a difference. Microsoft is not doing too great a job, so nobody knows whether things will get better or worse with the new owner.

The number one job for executives at publicly traded companies is to increase shareholder value. Once that stops investors stop investing.

Not really. That side of the business has been very stagnant. Sony is primarily a finance company (profit wise).

Not necessarily. That is the overall health of the company....not individual divisions. It's possible for a few divisions to lose money while the rest of the company props it up. You'd have to see the books to know that.

Too bad they couldn't of used some of that to release more than 1 360 game this year. *shrug*