• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Xbox profits revealed in new FTC leak (Update: margins are not operating profit, article was misinformative)

GHG

Gold Member
Why is Xbox associated with so much misinformation, deception, weirdness and out right lies?

The people who run the show over at MS must be rutten to the core.

No wonder they have no luck, everything they touch turns to shit.

This is the thing that gets me. These are internal documents.

Which means the lies, dishonesty and deception all extend within. It is so embedded within their culture that they are willing to do it during internal discussions/pitches. No wonder Phil Spencer still has his job.

Like DeepEnigma DeepEnigma said, Spencernomics.
 
Last edited:

Heisenberg007

Gold Journalism
This is the thing that gets me. These are internal documents.

Which means the lies, dishonesty and deception all extend within. It is so embedded within their culture that they are willing to do it during internal discussions/pitches. No wonder Phil Spencer still has his job.

Like DeepEnigma DeepEnigma said, Spencernomics.
One of the biggest recent proofs of this smokescreen for me is Phil's "30% GPU advantage" email.

If you notice, Phil did not send that email to Marketing, Aaron, Matt Booty, or Jason Ronald, etc. He wasn't sharing his excitement with his team. That email was sent to Satya Nadell and Amy Hood, his bosses -- the guys who make the decision of keeping the lights on.

Phil did not believe the 30% GPU advantage bullshit. He was selling it to Amy and Satya so they don't burn him. He was feeding them the wrong information.
 

Crayon

Member
One of the biggest recent proofs of this smokescreen for me is Phil's "30% GPU advantage" email.

If you notice, Phil did not send that email to Marketing, Aaron, Matt Booty, or Jason Ronald, etc. He wasn't sharing his excitement with his team. That email was sent to Satya Nadell and Amy Hood, his bosses -- the guys who make the decision of keeping the lights on.

Phil did not believe the 30% GPU advantage bullshit. He was selling it to Amy and Satya so they don't burn him. He was feeding them the wrong information.

Well that would be a bold move lol. It's possible though. The biggest question mark around that one is why does phil seem to believe it.
 

Ozriel

M$FT
This is the thing that gets me. These are internal documents.

Which means the lies, dishonesty and deception all extend within. It is so embedded within their culture that they are willing to do it during internal discussions/pitches. No wonder Phil Spencer still has his job.

Like DeepEnigma DeepEnigma said, Spencernomics.

The chart was made by Derek Strickland from TweakTown and not an internal document from Microsoft. The only thing ‘internal’ is the ‘accountability margin’ table.

Why are multiple posters pretending there’s internal documents with Spencer comparing AM at Xbox to Operating profit at their competitors?
 

DenchDeckard

Moderated wildly
turntables GIF
 

GHG

Gold Member
The chart was made by Derek Strickland from TweakTown and not an internal document from Microsoft. The only thing ‘internal’ is the ‘accountability margin’ table.

Why are multiple posters pretending there’s internal documents with Spencer comparing AM at Xbox to Operating profit at their competitors?

Because that's exactly what he did in one of his emails:

QCUU0xe.jpg
 
Last edited:

Ozriel

M$FT

And there’s absolutely no information to show this is incorrect, is there?

Far more likely it’s correct, since Phil said the same thing in testimony, correctly comparing both with the exact same AM metric.

What the thread has conclusively proven is incorrect is Derek’s chart comparing different metrics AM vs Operating Profit vs net profit. And none of that comes from Microsoft.

Not exactly rocket science
 

GHG

Gold Member
And there’s absolutely no information to show this is incorrect, is there?

Far more likely it’s correct, since Phil said the same thing in testimony, correctly comparing both with the exact same AM metric.

What the thread has conclusively proven is incorrect is Derek’s chart comparing different metrics AM vs Operating Profit vs net profit. And none of that comes from Microsoft.

Not exactly rocket science

You said there were no internal documents where Phil compared their AM to that of their competitors, I've provided exactly that.

So in this case we just have to take Phil's word for it? Wonderful stuff.

Unobfuscated finances for a division that is part of a public company shouldn't be so hard to come by.
 
Last edited:

Ozriel

M$FT
Yeh so in this case we just have to take Phil's word for it? Wonderful stuff.

Unobfuscated finances for a division that is part of a public company shouldn't be so hard to come by.

You mean the testimony given in court as part of the FTC case, discussed in the presence of Sony? Same testimony where he clarifies the magnitude of the profit margin as ‘single digit’, distinct from ‘accountability margin’?
qyeRtj8.jpg
 

GHG

Gold Member
You mean the testimony given in court as part of the FTC case, discussed in the presence of Sony? Same testimony where he clarifies the magnitude of the profit margin as ‘single digit’, distinct from ‘accountability margin’?
qyeRtj8.jpg

So he says they run at a single digit profit margin.

Playstation ran at a 10.7% profit margin in 2022.



What he said at testimony doesn't align with what he attempted to claim in his email.
 
Last edited:

Ozriel

M$FT
Where did i say he did? And does he have to be? Who fed him this info etc etc

The misinformation in this thread stems from a chart made by a journalist. You’ve pinned that on MS. Clear inference is you assume he works for Xbox?

Nobody fed him the info. He took the FTC data leak and drew his own conclusions.

So he says they run at a single digit profit margin.

Playstation ran at a 10.7% profit margin in 2022.



What he said at testimony doesn't align with what he attempted to claim in his email.

I don’t believe he compares Xbox vs PlayStation net profits. His testimony compared GM and AM to Sony’s.
 

graywolf323

Member
Where did i say he did? And does he have to be? Who fed him this info etc etc

Also MS has been using different types of channels to spread misinformation or targeted propaganda.

Not sure why you are so confused?
I mean we know one of the channels they use is astroturfers and more than a few have been busted here on GAF

with the amount of alts we’ve also seen get caught (including one from Sage himself!) we know full well that one of the channels MS uses to spread this BS is on forums…
 

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
Yes, I think they generated some $8 billion last year with $2 billion in profit. So that's a massive boost to Xbox.

And luckily for them, they will not have to count the purchase of ABK as money spent "per say". So on the books, it goes down as pure profit and easy revenues, by not needing to do anything.
 

Riky

$MSFT
It
And luckily for them, they will not have to count the purchase of ABK as money spent "per say". So on the books, it goes down as pure profit and easy revenues, by not needing to do anything.

Exactly, that is normal practice for balance sheet items.
 
Top Bottom