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[DaBoss]

Didn't know EDD was somewhat big for MS, that is really good.

 

[zou]

I edited. Are we talking about the same thing? I don't recall ever seeing "Revenue recognized for Video Game Deferral".

Maybe it's to indicate money spent on next-gen?

No, it's just income that MS received in previous quarters for a product that shipped this quarter. gaap measure afaik. Same as with recognizing windows/office pre-sales this quarter.

Edit: I'm probably simplifying it somewhat, but the main point remains the same. In a previous quarter they deferred the revenue, now they are recognizing it on the books. With Non-Gaap numbers that revenue would for example not show this quarter, so overall revenue would be lower. And instead in an earlier quarter MS would show higher rev/profit numbers.

 

[Rösti]

I noticed that the forward-looking statements contain this string:

significant investments in new products and services that may not be profitable;

Instead of the usual (at least it's much more common than the above)

significant business investments that may not gain customer acceptance and produce offsetting increases in revenue;

The first statement has been included in separate risk factors earlier (though only a few times), I've never seen it directly in the press release. It's probably nothing though.

The only products I can think of for FY14 are the new Xbox and Windows 8 Blue perhaps. For services I don't really know, if their gTLD business (.microsoft, .xbox etc.) is included that's priority of course; and everything connected to it (Xbox LIVE mainly).

 

[onQ123]

Depend on how they plan to keep it in the market, if they want to keep it up for just 3 more years then no way it will do it.

They would only need to sell about 7.4 million a year for the next 3 years to reach 100 million.

 

[PG2G]

There is also Microsoft's Surface line which is rumored to grow beyond tablets. Also the rumors of a Smart Watch.

 

[Rösti]

There is also Microsoft's Surface line which is rumored to grow beyond tablets. Also the rumors of a Smart Watch.

I thought about Surface but I didn't know there were rumors of expanding that line.

Also, the stream is playing some smooth music now. Call begins in about 10 minutes.

 

[Satchel]

Wonder if the 360 mini can take them over 100 if they leave it out there elong enough.

If the thing makes money on each unit sold, no reason not to keep it out there as long as physically possible.

 

[GavinGT]

No, it's just income that MS received in previous quarters for a product that shipped this quarter. gaap measure afaik. Same as with recognizing windows/office pre-sales this quarter.

Edit: I'm probably simplifying it somewhat, but the main point remains the same. In a previous quarter they deferred the revenue, now they are recognizing it on the books. With Non-Gaap numbers that revenue would for example not show this quarter, so overall revenue would be lower.

Hmm, any reason that figure hasn't been delineated in previous reports? And are you saying that they basically made a previous quarter's numbers look better to the detriment of this one's? Or that they actually received money from retailers for products not yet delivered?

 

[zou]

Hmm, any reason that figure hasn't been delineated in previous reports?

I'm pretty sure they highlighted it for Windows and Office. Probably wasn't significant enough to do the same for EED. Though I would be surprised if the actual SEC filing didn't include it.

Edit: Yup, it's there.

http://www.microsoft.com/investor/E...s/PressReleaseAndWebcast/FY13/Q2/default.aspx

 

[ekim]

Anyone joining the conference call here? Is there a live transcript of it?

 

[GavinGT]

I noticed that the forward-looking statements contain this string:



Instead of the usual (at least it's much more common than the above)



The first statement has been included in separate risk factors earlier (though only a few times), I've never seen it directly in the press release. It's probably nothing though.

The only products I can think of for FY14 are the new Xbox and Windows 8 Blue perhaps. For services I don't really know, if their gTLD business (.microsoft, .xbox etc.) is included that's priority of course; and everything connected to it (Xbox LIVE mainly).

They could be talking about stuff related to their Online Services Divison (Bing, mostly). That's been they're biggest sinkhole for a while now.

 

[Tomcat]

Anyone joining the conference call here? Is there a live transcript of it?

link?

 

[CrunchinJelly]

Conference Call: http://www.shareholder.com/visitors...ion.cfm?MediaID=54727&MediaUserID=0&player=1#

They're currently airing sexy music.

 

[Krilekk]

I don't think so. MS switches boats really quick when the next gen starts.

This has been said again and again: The only reason why they walked away from the original Xbox so fast was because Nvidia owned the chip design and made it impossible to make money with it. For 360 they own everything and make money with every console they sell. They will keep 360 going for at least three more years, if the XTV rumours are true even longer. You only walk away from losses, not from huge profits. The people that buy a 360 in 2012 or 2013 aren't the people that would consider a next gen console in 2013.

 

[Rösti]

Yeah, the conference call is about to begin any moment now.

 

[ekim]

Conference Call: http://www.shareholder.com/visitors...ion.cfm?MediaID=54727&MediaUserID=0&player=1#

They're currently airing sexy music.

I hope someone will listen closely. The stream doesn't work on the ipad.

 

[Satchel]

I don't think so. MS switches boats really quick when the next gen starts.

Seriously, why do people keep saying this?

Do you actually know why Microsoft dropped the original so quick?

 

[Tagg9]

I hope someone will listen closely. The stream doesn't work on the ipad.

It's a Windows Media Player plugin. >_<

 

[Lynn616]

$6 Billion in net profit even after the EU fine? That is impressive.

 

[Ninja Moomin]

I don't think so. MS switches boats really quick when the next gen starts.

Every Xbox sold increased their losses and they could not cost reduce the hardware.... 360 is very different in both respects.

 

[GavinGT]

LOL, want to listen to the conference call? Hope you're using IE.

 

[Dunlop]

It's a Windows Media Player plugin. >_<

lol

Quite surprised at the EDD numbers, also hopefully this spells out to a lot of people why they are making an "entertainment box"

 

[CrunchinJelly]

LOL, want to listen to the conference call? Hope you're using IE.

I'm listening on Safari...

 

[Rösti]

LOL, want to listen to the conference call? Hope you're using IE.

I'm using Chrome. There's an extension.

 

[R3TRODYCE]

Good stuff

 

[coldfoot]

$6 Billion in net profit even after the EU fine? That is impressive.

Speaking of which, why is the EC fine shown as positive and not a loss?

 

[Steverulez]

I'm listening on Safari...

Have you got any extensions or anything to Safari? Quicktime has opened something but just sits there loading.

 

[CrunchinJelly]

Have you got any extensions or anything to Safari? Quicktime has opened something but just sits there loading.

http://www.telestream.net/flip4mac/overview.htm

 

[zou]

Speaking of which, why is the EC fine shown as positive and not a loss?

That's for Non-GAAP. And I would guess they probably haven't actually paid the fine yet.

 

[Sho_Nuff82]

E&D is about 5% of their profits, not too shabby.

 

[G17]

LOL, want to listen to the conference call? Hope you're using IE.

For those who use Firefox, Firefox + VLC is working great.

 

[statham]

office 365 is doing well.
edit: I'm using firefox.

 

[PhatSaqs]

XBL members up 18% YoY. Dat paywall.

 

[L1NETT]

Please be excited for E3.

 

[Tagg9]

From the conference call -

"The Xbox has great momentum. With E3 only a few months away, we look forward to sharing more soon"

 

[Rösti]

Please be excited for E3.

What he said (Tagg9's transcription is better though):

With E3 just a few months away, we look forward to share more shortly.

 

[GavinGT]

For those who use Firefox, Firefox + VLC is working great.

Mine just sits there with that setup, after a VLC logo pops up.

 

[ekim]

From the conference call -

"The Xbox has great momentum. With E3 only a few months away, we look forward to sharing more soon"

Meh.

 

[DaBoss]

For those who use Firefox, Firefox + VLC is working great.

Thanks, will do this.

 

[CrunchinJelly]

Meh.

That was only the quick overview... they might mention more.

 

[zou]

Damn, 2/3 of Enterprises are now running Win 7.

 

[Rösti]

That was only the quick overview... they might mention more.

And there's also the Q&A session which usually is where more information comes from.

 

[Steverulez]

http://www.telestream.net/flip4mac/overview.htm

Cheers!

 

[GashPrex]

$6 Billion in net profit even after the EU fine? That is impressive.

yet GAF told me that MS was doomed and Sony was going to take them down...

 

[1st Course]

They would only need to sell about 7.4 million a year for the next 3 years to reach 100 million.

That will be extremely hard to achieve. MS should be able to ship 10m (78 LTD) by the end of this fiscal year, a decrease of %23.08 from FY12. Assuming that Xbox sales will see a decrease of %20/year in the next upcoming 3 years, the numbers will look like this:

FY 14: 8M (86m LTD)
FY 15: 6.4M (92.4m LTD)
FY 16: 4.92m (97.32m LTD)

They would need to keep sales at only -%14/year for them to reach 100m within 3 years, not impossible but very hard.

 

[Tagg9]

1.3 million 360 consoles in the last quarter? Did I hear right?

 

[iMax]

And there's also the Q&A session which usually is where more information comes from.

Is there definitely a Q&A? Didn't hear one mentioned :/

edit: there is!

 

[allan-bh]

1.3 million 360 consoles in the last quarter? Did I hear right?

Yes

 

[Miles X]

yet GAF told me that MS was doomed and Sony was going to take them down...

Lol that was very amusing.

 

[oVerde]

But GAF said me to jump off MS wagon 'cause they were doomed