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View Full Version : Microsoft rakes in more money from Samsung than it does from Xbox


Rubeus
10-09-2014, 01:15 AM
That makes the Xbox division just a "hobby" not business in Microsoft. :lol:

Microsoft might not make much money from its Windows Phone division, but that doesn't matter: it makes up for it in droves with the royalty fees from Android handset owners such as Samsung and HTC. It was recently revealed that Samsung has handed over $1 billion per year to Microsoft for the use of these royalties, making Microsoft bundles of cash for doing, well, not much at all.

Considering the Entertainment and Devices Division, where the Xbox brand, Kinect and Xbox Live sit, oh and not to mention Skype, and Windows Phone, only made $848 million last year - the $1 billion Microsoft raked in from Samsung means the company made more from its loyalty fees to just one company - Samsung - than it did for all of those massive brands and divisions, combined.

Remember, this is just the money Samsung pays Microsoft, and doesn't represent all of the other Android handset manufacturers on the market. Microsoft has quite the stranglehold on Android it seems, with the Chinese Ministry of Commerce approving Microsoft's purchase of Nokia having Microsoft said the authorities: "concluded after its investigation that Microsoft holds approximately 200 patent families that are necessary to build an Android smartphone".


http://www.tweaktown.com/news/40424/microsoft-rakes-in-more-money-from-samsung-than-it-does-from-xbox/index.html

Drunken Savior
10-09-2014, 02:56 AM
Diversification.

Nem
10-09-2014, 08:54 AM
Yup. Not necessarely the best strategy for them, but its a strategy.

Escaflowne2001
10-09-2014, 09:24 AM
It seems to be a better strategy then Sony or Nintendo have at the moment at least.

Nem
10-09-2014, 11:55 PM
Business strategy and operational strategy arent the same.

Actually, i have no idea wich business strategy Sony is using as they seem to just be downsizing. They were going for diversification once upon a time. I need to review. :p I guess its consolidation of some sort.
As for Nintendo we already know they are going for those wealth and care... things.

Looking at it... maybe Sony is the one with the best strategy. But seeing as i am a gamer, i'm a bit biased on this. Diversification reduces risk and that is definitly good for Nintendo aswell if they can find sucess on that market.
On Microsoft side the diversification strategy hasnt really ended in much. Its not like Microsoft could live off the xbox if the windows/office divisions crashed.