Xbox division loses $1.9 billion this year

Written by Joe Martin

July 20, 2007 | 16:33

Tags: #360 #bill-gates #billion #core #elite #halo-3 #loss #matrick #moore #premium #red-ring #robbie-bach

Companies: #microsoft

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!
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