Comment by fetbaffe
8 years ago
On what hardware platform does Microsoft earn money on? Xbox and keyboards?
Will Microsoft go back to a pure software maker?
8 years ago
On what hardware platform does Microsoft earn money on? Xbox and keyboards?
Will Microsoft go back to a pure software maker?
With the right strategy, making money is not essential. Like Google with the Nexus a few years ago, MS needs only to build reference hardware to keep OEMs on the straight and narrow, then collect elsewhere (with preinstalled services or OS that OEMs end up distributing).
The problem is that "elsewhere" is currently occupied by Google (in terms of ubiquity) and Apple (in terms of profit), so MS has been pushed into the uncomfortable role of luxury OEM, and there is no major money there regardless of whether you make phones or laptops.
Surface
Not sure if Microsoft has earned back it's investment on the Surface line yet. First years it was a big loss, then it has started to earn money, but it has started falling again.
Compared to Xbox, Surface revenue is about a 25% of Xbox.
Of total earnings Surface is about 3%.