Despite the increase in sales, the balance sheet of the Xbox marketing division continues to bleed profusely. Indeed, according to a report that Microsoft has presented to the SEC the marketing of the console causes even greater losses than last year.
The answer to the seemingly inexplicable arcane of a division that sells the most loses is found in the fact that the Redmond company continues to sell the Xbox well below the production cost, losing about $ 100 per piece. So here is the red of well 348 million dollars on a turnover of 1.28 billion against the 180 million of losses for 833 million of turnover of the quarter which ended in December.
Obviously for Microsoft it is a calculated operation that aims to consolidate a user base of the Xbox and then take profits from what could be called "induced", royalties for the development of games and peripherals but also and above all tool for those who produce games for the console. The problem that, for, at least for the moment, this induced still is not seen while the competitor PS 2 of Sony is rampant on all world markets.
Scrolling through Microsoft's balance sheet, we can confirm that once again the Office division is the real family safe. It is here that the December quarter produced 1.88 billion dollars in profit on 2.41 billion in turnover, up on last year (1.74 billion in profit on a turnover of 2.2 billion in dollars.
Obviously, the division that deals with Windows (but which falls compared to the quarter of last year) also produces profits, as does the division that works in the server market.