Microsoft makes about $2 billion each year from android patent royalties. This is according to analyst Rick Sherlund of Nomura.
Sherlund says that Microsoft’s Entertainment and Devices group (responsible for the Xbox and Windows Phone) is profitable, but this is mostly thanks to those royalties.
Here’s an interesting portion of a Business Insider report:
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.
Interesting. It’s hard to know from the outside looking in, but that’s quite a bit of money made from those royalties.