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M$ says xflop 1.5 full circle will not make a profit either

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Anonymous
July 22, 2005 4:52:58 PM

Archived from groups: alt.games.video.sony-playstation2,alt.games.video.xbox (More info?)

Microsoft still losing money on Xbox

Gaming 360 not likely to make much either

By Aaron McKenna: Friday 22 July 2005, 12:04
DESPITE posting a 22% increase in revenue for its Home & Entertainment
division Microsoft continues to make an operating loss on the arm
amounting to $179 million, bringing the yearly loss to $391 million.
This is down from a loss of $1.2 billion last year, so not too bad, but
the Xbox remains a big money loser for Microsoft. When I asked Stephen
McGill, head of UK marketing for the console, if Microsoft was
expecting to make money on the Xbox 360 he shrugged and told me:
"We're thinking long term." Microsoft figures that the console
market is a highly lucrative one, especially when mixed in with its
larger home entertainment designs, and is willing to pocket a loss in
the short to medium term for a long-term money spinner.
If it pays off, then Microsoft could stand to make back losses on the
Xbox inside a few years, though it is still surprising that it is
willing to bankroll the console at a loss through more than one
generation.
July 22, 2005 7:24:32 PM

Archived from groups: alt.games.video.sony-playstation2,alt.games.video.xbox (More info?)

The blew too much money on Japan. They should write off that market and
get out while they can. It's not like the Japanese market generates
significant cash flow anymore.

- Jordan
Anonymous
July 22, 2005 8:36:07 PM

Archived from groups: alt.games.video.sony-playstation2,alt.games.video.xbox (More info?)

Good for us...I mean OUR wallets.

It seems that the PS3 is going to cost a fortune. YIKES!

"'Kutaragi was evasive about giving hints about a price on PlayStation 3,
which is likely to be key in determining how well it will sell.
"I am not going to talk about the price today," he said to a packed hall.
"It will be expensive.""

http://mdn.mainichi-msn.co.jp/business/news/20050721p2g...


"Blig Merk" <blig_murk@yahoo.com> wrote in message
news:1122061978.750200.266330@g44g2000cwa.googlegroups.com...
> Microsoft still losing money on Xbox
>
> Gaming 360 not likely to make much either
>
> By Aaron McKenna: Friday 22 July 2005, 12:04
> DESPITE posting a 22% increase in revenue for its Home & Entertainment
> division Microsoft continues to make an operating loss on the arm
> amounting to $179 million, bringing the yearly loss to $391 million.
> This is down from a loss of $1.2 billion last year, so not too bad, but
> the Xbox remains a big money loser for Microsoft. When I asked Stephen
> McGill, head of UK marketing for the console, if Microsoft was
> expecting to make money on the Xbox 360 he shrugged and told me:
> "We're thinking long term." Microsoft figures that the console
> market is a highly lucrative one, especially when mixed in with its
> larger home entertainment designs, and is willing to pocket a loss in
> the short to medium term for a long-term money spinner.
> If it pays off, then Microsoft could stand to make back losses on the
> Xbox inside a few years, though it is still surprising that it is
> willing to bankroll the console at a loss through more than one
> generation.
>
Anonymous
July 23, 2005 5:37:09 PM

Archived from groups: alt.games.video.sony-playstation2,alt.games.video.xbox (More info?)

carrajo, there is an aspect to Moore's Law that is typically not spoken
of (Moore's Law being that computing power will double 18 months).
This unspoken aspect is that COSTS of R&D on next generation chips and
production will also double each generation. So, companies are going
to bleed themselves drying to one up themselves, and for diminishing
returns in the process.

- Richard Hutnik
!