Microsoft claims 42% of next-gen revenue

by Terrence Stasse { Mar 12th 2008 at 3:30PM }

Microsoft recently made some pretty big statements regarding the console wars, and one of them is a bit surprising. Revealed in the article is the fact that hardware sales have now reached 17.7 million (though shipped vs sold was not mentioned). They also claim that "We've taken 42 per cent revenue share of next gen-games market – including hardware, peripherals and software" and that their hardware attach rate is over 7 games per console sold. Now, those are some impressive figures, but as any business student will tell you, there is a big difference between revenue and profit, and you wouldn't announce the least preferable if you had the more. So Microsoft, when are you going to stop telling us how awesome you are and prove it by making some real money?

Tags: microsoft

Reader Comments (Page 1 of 1)

bigmac375 @ Mar 12th 2008 3:43PM

and any business student with remote knowledge of how the gaming industry works will tell you that microsoft needs to extend this console cycle as long as possible.

Bluemanrule @ Mar 12th 2008 3:48PM

As a former business student, I can tell you that even with low profit margins, a 42% increase in revenues substantially affects the bottom line. Remember, MS is rolling on 2-3 consecutive quarters of profit. They'll need to extend that another 20-30 months to "win" this generation.

FordGTGuy @ Mar 12th 2008 3:50PM

With the Attach Rate and sales number of the Xbox 360 I can believe it.

ericdrum @ Mar 12th 2008 3:52PM

Did Ken Weeks get hired back here and change his name to Terrence Stasse?

Garrett Hedley @ Mar 12th 2008 3:54PM

They don't need to make money, they're Micro$oft! They just throw themselves into a new market for the hell of it. lol

42 is a good number, though...

Terrence Stasse @ Mar 12th 2008 3:55PM

Wow, the business students really came out of the woodwork for this one!

And who's Ken Weeks, and why does that matter?

ericdrum @ Mar 12th 2008 3:59PM

Ken used work at X3F and seemed to post a lot of anti MS stuff and flame bait. This news post seems like flame bait to me.

Terrence Stasse @ Mar 12th 2008 4:02PM

It wasn't intended to be flame bait, I just think it's a bit silly to champion revenue when profit is the goal of business.

But then I'm an art student, not a business student.

fulci zombi @ Mar 12th 2008 4:11PM

Well, the two are not unrelated you know.

Tony @ Mar 12th 2008 4:16PM

Yeah, but there's also clearly a reason why MS never actually references the profit margins. Let's not be totally oblivious to that.

CB17 @ Mar 12th 2008 4:19PM

I think Microsoft understands the difference between profit and revenue, but I don't think that was the point of their statement. The point of their statement was to show how much better they're doing then the competition, in which case, profitability is irrelevant.

ZEBRA NINER @ Mar 12th 2008 4:21PM

Yeah Terrence... you freakin' flame baitin' son of a bitch! You get off on starting little flame wars? Sitting in front of your computer pleasuring yourself to the heated debates that you cause!?

haha! ;).

Companies are always going to spin everything in their favor, it's the way of the world!

jkdoug @ Mar 12th 2008 5:11PM

Microsoft has to be making more profit on the Xbox 360 than Sony is on the PS3, but I highly doubt either is beating Nintendo on the Wii. Production costs on the Wii have to be lower than the other systems, which should translate directly into more profits, right? If only they'd actually make and ship enough units that I could find one in the damned store!!