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Xbox division loses $1.9 billion this year

Xbox division loses $1.9 billion this year

Microsoft has revealed that the Xbox 360 lost over $1.9 billion this year alone.

The results are in for Microsoft's fiscal year ending June 30th and the results for the Xbox line aren't good. In fact, the division to which the Xbox console belongs has posted a massively staggering loss of $1.9 billion.

Now, sure, the entertainment division of Microsoft is pretty big and covers a lot more than just the Xbox 360, so you may think that the Xbox is still doing all right. Wrong.

Apparently, of the $1.9 Billion total loss, a massive $1.2 Billion of it was incurred solely in the fourth quarter of the financial year. This just happens to coincide with Microsoft's admittance to hardware failures on the Xbox 360, which some suspect affects around 30 percent of Xbox consoles.

The division actually grew by 28 percent this year though and Robbie Bach, President of the Microsoft entertainment division, reckons that the Xbox 360 may be profitable next year in spite of this year's losses.

Robbie may not be as confident as he appears though and recently sold off $6.2 million of Xbox 360 shares at the same time as Peter Moore, who has since moved to EA Sports, revealed a new extended warranty and confirmed that Microsoft was aware of hardware failures to the Xbox 360.

Microsoft claims to have sold 6.6 million units of the Xbox 360 and says that revenue in games has increased by 19 percent, to a total of $650 million. Not that they need to boast; if there was ever a company that could lose almost $2 billion on a single line and still carry on regardless, then it was Microsoft.

Still, if you want to tease Microsoft for its failures then be sure to swing by the forums and do so publicly!

12 Comments

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Spacecowboy92 20th July 2007, 17:43 Quote
Everyone seems to be loosing money these days, Microsoft, AMD...
fwalm 20th July 2007, 17:46 Quote
well its true billy boi can afford that to keep sony crying but the warranty was going to cost over a billion dollars so realistically they lost under a billion on the sales and everything just the faulty hardware cost them dear
devdevil85 20th July 2007, 18:54 Quote
Sux for M$. I love how some people, even M$ themselves are making out that this $1 billion loss really isn't affecting overall profit....what a joke...I mean for Robbie Bach to sell his stock along with Peter Moore...that's not a good thing....
Spacecowboy92 20th July 2007, 20:44 Quote
According to engadget, there still up $3bn though. (Microsoft as a whole)
devdevil85 20th July 2007, 20:49 Quote
/\ Well I meant it sucks for Microsoft's Xbox Gaming Division.....not M$ in general....I don't think M$ will ever not make profit...
thecrownles 20th July 2007, 21:13 Quote
unless next quarter hardware failure rates go up again. Wow. Over a billion dollars lost on a single product. Fun.
DXR_13KE 20th July 2007, 21:31 Quote
i think i smell a sinking boat...... all the rats are leaving....
Lucidity 20th July 2007, 22:06 Quote
^ LOL! I smell ignorance in the poster above.
proxess 21st July 2007, 00:49 Quote
billy has enough money to NOT make profit during 11 years and pay all salaries.
DXR_13KE 21st July 2007, 14:27 Quote
Quote:
Originally Posted by Lucidity
^ LOL! I smell ignorance in the poster above.

ignorance is bliss, unfortunately i am to much used to feel sinking ships and watching rats running away from them to not feel the same about this..... there is almost no way that the Xbox360 will sink but i feel it will be hit real bad in the present and the future.... these lawsuits and high failure rates make it prone to this.... unless MS fixes the 360 quickly they will have a sinking ship on their hands.
HenvY 23rd July 2007, 00:01 Quote
I bet Ninty aren't losing money. :p
The_Beast 23rd July 2007, 00:18 Quote
I wish I found that 1.9 billion ;)
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