DenchDeckard
Moderated wildly
Ahhh, so its net profit for the studio?
6% isn't great or anything but it isn't terrible.
Ahhh, so its net profit for the studio?
6% isn't great or anything but it isn't terrible.
Insanemaelstrom
Member
Ignore me, I was having a brain fart
NeverYouMind
Member
I am demoing it on GamePass but I do not think this game is for me. First person and stealth really take me out of the moment.
Vyse
Gold Member
It was a really fun game for me. You should give it a few to see if it clicks.
omegasc
Member
That's a lot of SEKs
Ashamam
Member
By whose standard? The only one that matters is MS, and if you think they are ok with 6% I have a bridge to sell you. It also occurs to me that this is across the financial year they had their banger title release.... But I guess it's ok because GP is profitable (hint 6% is why the service is profitable, this is what studios subsidising the service looks like. So actually they might be ok with 6% because its not really 6% and GP might not really be profitable)
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DenchDeckard
Moderated wildly
So you're telling me MS aren't happy with 6 percent and you sell bridges?
What margin would MS be happy with? What's their baseline margin expectations for a studio?
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Ashamam
Member
Do a search, the info is out there. Hint, its double digits at the low end. But like I added (you may have missed it, it was an edit), maybe they are ok with 6% because perhaps its not actually 6% if you gave the studio some credit for MAU GP activity. Which must suck for studios imo, and why it's a dodge not to include 1st party contributions to GP. Decisions are being made on these types of numbers.
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DenchDeckard
Moderated wildly
By double digits do you mean 10 percent, 20 percent, 30 percent etc?
Ashamam
Member
Microsoft Corp. (NASDAQ:MSFT) | Analysis of Reportable Segments
Analysis of Microsoft reportable segment ratios such as profit margin, return on assets (ROA), asset turnover, and capital expenditures to depreciation.
www.stock-analysis-on.net
You can safely say that 6% is not going to be what they are looking for. I wouldn't expect 30% like the computing segment, but you can bet the overall Xbox division is expected to hit something of that order. As per Phil its non negotiable when it comes to profits and Xbox.
Xbox is a separate business unit where profit 'non-negotiable'
Xbox is a separate business unit with its own profit targets within Microsoft: 'There's no part of our business where I get to lose money over time'
www.tweaktown.com
Steve Holt
Member
6% net profit. Wow, considering they recently shipped a successful game - that is a big surprise.
Obviously they shipped on GamePass, that's going to have a significant effect.
Obviously they shipped on GamePass, that's going to have a significant effect.