Business Insider reports on comments made by analyst Rick Sherlund on Microsoft.
For the past few years, Microsoft reported the revenue and operating losses of Entertainment and Devices, which was the group that housed Xbox, Windows Phone, and those Android royalty payments.
That group always seemed to be profitable, but Sherlund says it’s largely because of the Android money.
Sherlund says that if you back out the Android profits, Microsoft is probably losing $2.5 billion on Skype, Xbox, and Windows Phone. Of that, $2 billion in losses are attributable to the Xbox platform.
It is interesting to note that Google does not charge licensing fees for Android but Microsoft ends up making big earnings purely through patents.
And of course, do note that these claims are not official figures.