Xbox Profits for Q2 2021

When Maximillion Dood released his video announcing the Twitch Rivals tournament, he mentioned Microsoft’s insane profits and I poked around to find a little more out.

According to this article, Microsoft had $5 billion US in revenue through it’s second 2021 quarter (Sep. to Dec. 2020). Overall revenue for the Xbox/gaming division is $43 billion US, with profits of $15.5 billion US.

I’m not an economist, so the part I don’t understand is if the second series of numbers is overall for the fiscal year, or still related to the second quarter only.

Having said that, it appears their profits are higher than Sony’s PlayStation division.

According to this article, Sony’s profits for the same quarter increased by $3.42 billion US, and they’re now expecting an operating profit of $8.95 billion US for year from March 2020 to March 2021.

Both companies are doing well, of course, but it does look like Microsoft is making more right now. Unless I’ve misunderstood these numbers.

It’s really tough to unpack the numbers that are reported without having the physical reports to go through. A lot depends on whether they are talking about net or gross and how they calculate revenue, deferred costs, depreciation of assets etc. I work for a much smaller organization than MS and I have trouble explaining our financials to the Board - and we are not trying to sell anyone anything.

These reports are designed to instill shareholder confidence and while they are subject to a lot of rules to keep companies from misrepresenting, they get spun in a lot of ways.

It’s very likely that both companies are doing well. I think a side by side comparison would be pretty tough.

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Yeah, economics hurts the head.