X360 To Turn A Profit in 2008

[BenN1ce]

Gamespot (http://www.gamespot.com/news/6154809.html) has the story.

Microsoft's gaming division has a history of red ink. For fiscal year 2005, it posted a loss of $485 million. For fiscal year 2006 (which ended June 30, 2006, and included the launch of the Xbox 360), it lost $1.26 billion.

However, Microsoft entertainment and devices division president Robbie Bach today said that's about to change. In a presentation at the company's Financial Analyst Meeting 2006, Bach said the gaming division is expected to lose the company money once again for fiscal 2007, but that it will turn in a profit for 2008. If that happens, it would be the first time the gaming part of Microsoft's entertainment and devices division posts a profit for a fiscal year.
They will finally begin to chip away at the 4 billion dollars spent on Xbox 1

[DingBat]

Gamespot (http://www.gamespot.com/news/6154809.html)
has the story.



They will finally begin to chip away at the 4 billion dollars spent on Xbox 1

How long has Micrsoft been in the game console market? Less than 10 years?

Sneer all you want, but it seems to me that turning a profit after that amount of time is a pretty impressive achievement. Especially considering they had to muscle into a market with entrenched competition.

Do the numbers also include the money to set up XBox Live? If so, the achievement is doubly impressive.

[Zanzibar]

I'll believe that when I see it. I hope they're factoring in a couple of price cuts in there, god dammit.

Not that I need the price cuts - I already have my X360. But I want them to WIN.

$40 price cut for Xmas. Cmon MS. Do it. Just fucking do it. "$360 for a 360."

[CaptStu]

We should set up a donation box.

[51|RandoM]

Good news for them.

I don't know if I'd say "about to" when referring to something 2 years from now, though.

[51|RandoM]

We should set up a donation box.

They already did, it is called Live Arcade.

[Sensei-X]

We should set up a donation box.

Well Microsoft isn't the one who's struggling to make ends meet right now, perhaps poor 'ol broke-ass Sony might better benefit from charity. :D You know those Hawaii business trips to discuss downsizing don't pay for themselves.

[SexualChoc]

Well Live Arcade seems to giving plenty of cash to the 360, along with strong game sales. Good for them.

[Mike Jones]

How long has Micrsoft been in the game console market? Less than 10 years?

Sneer all you want, but it seems to me that turning a profit after that amount of time is a pretty impressive achievement. Especially considering they had to muscle into a market with entrenched competition.



Negative. Unless your goal is to bleed money for 7 years straight.

[Zanzibar]

Negative. Unless your goal is to bleed money for 7 years straight.
I'm sorry, did you say something?

You know, until you acknowledge plagiarizing that article, every post you make here without mentioning it makes you look more and more foolish.

I could care less who you are, but the fact that you simply won't even address the issue makes you a laughingstock around here.

Just admit it and we'll move on, perhaps you might have something useful to add, but until you come clean, you aren't worth listening to.

[NightRain]

How long has Micrsoft been in the game console market? Less than 10 years?

Sneer all you want, but it seems to me that turning a profit after that amount of time is a pretty impressive achievement. Especially considering they had to muscle into a market with entrenched competition.

Do the numbers also include the money to set up XBox Live? If so, the achievement is doubly impressive.

Well they didn't start selling consoles until Nov 2001, so less than 5 years. I suppose you could tack on 2-3 years for consoles developement, or count the fact the dreamcast used Windows CE.

[ldi222]

It will be interesting to see if they indeed to turn a profit but its definitely obvious that support for Xbox1 fell off the face of the earth fast and the 360 from the get go was designed to be profitable. Cant blame MS for that but it would have been nice to see a little more love to the peeps who helped them get here.

"What ya know about switching lanes holding wood grain"

http://www.seeklyrics.com/lyrics/Mike-Jones/What-Ya-Know-About.html

:)

[Vermillion]

Woowoo, I vote to boycott any future posts on Sony or that contain a comment from Mike Jones, the child killing, soul stealing pet animal rapist...

[Skizott]

Hey Mike Jones posted, lets derail this thread instead of ignoring him!

For.The.Win.

On Topic: I'll believe it when I see it. Too bad I'll forget about it then.

[markster3000]

I imagine that the continued MS losses have frustrated Sony to no end.

Imagine needing to complete profitably against a competitor who has resources so far beyond yours, that they can afford to lose money!

In a way, it's a real testament to how well Sony's done this generation.

[Malovech]

Despite the fact that I am not a fan of MS, I have to say if I was going to pick a winner in this thing between the two- it definitely wouldn't be Sony. They have been fucking up for your years now. The also could give to shits about their customers.

[Rook34]

I'm sorry, did you say something?

You know, until you acknowledge plagiarizing that article, every post you make here without mentioning it makes you look more and more foolish.

I could care less who you are, but the fact that you simply won't even address the issue makes you a laughingstock around here.

Just admit it and we'll move on, perhaps you might have something useful to add, but until you come clean, you aren't worth listening to.

Ouch! Vicious! There's blood in the water after that one...
Too bad he probably wont be back though.

[bean19]

Actually, they just failed last generation and never made money, luckily for us consumers, they had the money to absorb their losses with the Xbox.

Starting to show a profit by 2008 shows that they are NOT losing this generation because they are making better decisions and creating a product that more people will be interested in.

[gojira]

Well they didn't start selling consoles until Nov 2001, so less than 5 years. I suppose you could tack on 2-3 years for consoles developement, or count the fact the dreamcast used Windows CE.

I would count the development time, certainly. It's part of their start-up costs, and must be accounted for on the balance sheet.

So 2008 - 2001 + 2 or 3 years development = 10 years, before they will show quarters in the black. NOT make a profit. Just stop hemoraging red ink. It's pretty harsh if you think about it.


But sure, hope they do it, MS and Sony battling it out has been the greatest boon for consumers in the game console industry in a long, long time. More trying to buy my loyalty, please.

[Johan]

MS is definitely headed in the right direction, but I'll still believe this "profit in '08" stuff only after I've actually seen it happen.

Slightly off topic: Anyone else think it's absolutely insane for companies to sell their consoles at the per-unit losses they do? I know they eventually save production costs and eventually break even and then make some money, but it seems nuts to me...sorry for the tangent.

[bean19]

Johan - Yes and no. The video game industry is going to get bigger and bigger. Microsoft is basically investing in the video game industry so that they can eventually make billions off it the way they do the PC.

It's a really good thing for us that they are willing to take those losses. Otherwise we would ONLY see incrimental advances in technology that are akin to what we can expect from the Wii.