In the war of home game consoles, there are two names dogfighting up there on top: The Playstation 4 and the Xbox One. So far, Playstation 4 is taking the lead in conquering the hearts and minds of recreational and hardcore gamers out there.

With millions of Xbox Ones sold during the first month, Microsofts' Xbox One premiere launch would be considered a success. However, it paled in comparison to Sony's Playstation 4, with the latter performing two times better according to The Motley Fool. In addition, the sales of Xbox one slowed down after the first month debut; most probably due to the end of the holiday rush.

When new tech products are launched, reports on their sales performances and revenues always hit the tech news headlines. Writers, analysts, bloggers try to keep the public up to speed on who's who and what's what in terms of market leadership. However, headlines can sometimes be deceiving.

In a recent SEC report, it stated that the Xbox division revenue is now up to $1.7B annually while its cost is up to $2.1B according to Forbes. At first glance, one could conclude that the game console is experiencing staggering losses for Microsoft. Anti-Xbox people will revel in some sort of misguided thinking; which is primarily a misconception.

Looking closely at the data, it is important to note that it does not mean that the Xbox is losing $400m. It only means that the cost to produce and market Xbox one is high at $2.1B but the statement still suggests that the Xbox division garnered higher revenue. It's never easy to compute the actual income through words or paragraphs. We are talking about the mathematics of finance here. The bottom line is; Microsoft is not worried because they know that it really costs a lot to debut a new product. Experience tells them to look at the big picture, the long-term.