margins can't be compared to interest rates, because it's comparing revenues against costs. Comparing that with interest rates yields nonsensical results. If you want a proper comparison, you'd need return on capital, which requires you to figure out how much capital is in the gaming division.

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TylerE 2 hours ago | parent [-]

Why not?

If you input $1000 into process A which returns $20, and inputing $1000 into process B returns $30, you'd be insane to invest in process A and not process B, right?

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gruez an hour ago | parent [-]

That example only says 3% margin is better than 2% margin, not whether the hypothetical process yields better results than a bond paying 4% (or whatever). If the said process takes exactly 1 year to complete, and requires all the inputs to be provided upfront, then its margins can be directly compared to bond yields, but businesses are rarely that simple.

	▲	TylerE 24 minutes ago \| parent [-]
		It's not hypothetical. Xbox's margin last year was 3%.