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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.
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.