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MS Cuts 360 Estimates, Xbox Division Posts $289m Loss.

Microsoft's Entertainment and Devices division has posted a US $289 million (EUR 223.6m) loss for the second quarter - and cut fiscal year estimates for Xbox 360 hardware.

The company now expects to ship a total of 12 million units by the end of June 2007, down from the original estimate of between 13 and 15 million.

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True Gamer3951d ago

What are the 360 fanboys gonna say now?

power of Green 3950d ago

Probably not much they read and understood the news. Dam 360 fanboys?.lol

NextGen24Gamer3951d ago

The company now expects to ship a total of 12 million units by the end of June 2007, down from the original estimate of 13 million.

"We are just being cautious about the second half," commented Microsoft CFO Chris Liddell to news agency Reuters. "There's a reasonable amount of inventory in the channel."
Despite the US $289 million loss, the Entertainment Devices division was responsible for US $2.63 billion (EUR 2.03) profit during the second quarter.

The Entertainment Devices division not only incorporates the Xbox 360 and software, but also the newly launched Zune media player, PC games, TV platform products, and mobile and embedded devices.

According to Microsoft, repair expenses and the extension of the 360 console warranty from nine months to a year in the US and Canada ate into the division's profitability.

Microsoft posted a revenue increase of US $1 billion (EUR 773m) for the division during the second quarter, with a US $1.3 billion (EUR 1bn) increase for the first half. Revenue for the Xbox and PC game departments grew 76 per cent and 82 per cent, respectively.

Results showed that the company has sold 10.4 million Xbox 360 consoles, as previously revealed by Robbie Bach at this year's CES. The second quarter saw 4.4 million units shipped ended December 31 2006, boosting the first half total to 5.4 million units.

At least we have a company that is honest. This way if they surpasses 12 million they have exceeded their new expectations...But they can safely say that 12 million will be reached by the end of the quarter. What is interesting is they have been accurate on all of their projections thus far. WOW...Thanks Microsoft. Keep up the Good Work.

achira3951d ago

lol, i bet they will sell only 11 milions.

NextGen24Gamer3951d ago

And now that they have surpassed their initial goal of 10 million by 400 thousand units.....You move on to attack their next goal. Well, 12 million is definately safe. That would mean they would sell 1.6 million in the quarter. Which is right on par with what they have been doing for over a year now. Something the ps3 couldn't do in its Launch window. ha ha ha ha ha....If people don't want the ps3 in their own country NOW. What will happen a year from now? Sad indeed...

Sales of the PlayStation 3 in Japan dropped further in the week to January 21 as the games market there suffered from lackluster demand compared to recent weeks, according to data published Friday. The PlayStation 3 suffered its worst week of sales since launch for the second week in a row.

A total of 21,105 of the consoles were sold during the week, said Media Create. The research company receives data from around 3,000 stores across Japan and uses that to estimate nationwide sales.

Sales of the PlayStation 3 were highest during the launch weekend, when 81,639 were sold over two days, the company estimates. The sales dropped and then peaked again at 76,992 units in the last week of 2006. But sales have dropped each week since the new year, according to Media Create.

Sony said last week that shipments of the PlayStation 3 in Japan reached 1 million on January 16. The figure includes products in transit to retailers, in shop store rooms and on shelves waiting to be sold, in addition to units actually sold. SCEI's original target was to ship 1 million units in Japan by the end of 2006.

FirstknighT3951d ago

They're not one of the richest companies in the world for nothing! Good Job Microsoft! Oh by the way, the ps3 division will post a bigger loss for sure!

Raist3951d ago (Edited 3951d ago )

But making business that is just losing money over and over isn't what you can call a success.

At some point in time, you must earn money you know. that's what business is for.

JasonPC360PS3Wii3950d ago (Edited 3950d ago )

“You may be the richest But making business that is just losing money over and over isn't what you can call a success”

This statement is a contradiction, to be the richest means you don’t lose to much money. How is it you see a company that has done nothing but grow sense its existence as a failure?

“At some point in time, you must earn money you know. that's what business is for.”

Am I missing something has MS gone bankrupt or something? Or are you just mad because there the market leader in gaming right now. Think you might be in the wrong place, you took a wrong turn I think you wanted PS3ville. You so…. Remind me of other fans on here, do you even look at what you type to people before clicking the button?

Here is my two cents about business for you, ok are you ready. When you have a new product it takes money to get it out to people. For a little while your profits are weak because you spent so much on making sure everyone knew what it was. For MS to be losing money and still be kicking its competitors A$$ in the first year of the 360s life is outstanding (especially if you own stock, I do.) When I opened my business I lost money for the first year and a half, it’s been almost 4 years and we now have 12 employees and are about to open a larger place. MS on the other hand was able to turn it around so quickly, don’t you see all the smiling faces of the people who work for MS, that means there “happy” holding there wallets and sending fat paychecks to the bank.

“The Entertainment Devices division not only incorporates the Xbox 360 and software, but also the newly launched Zune media player, PC games, TV platform products, and mobile and embedded devices.”

Lot of sh!t to promote, they spent a lot of money getting these products up and running. Too bad there releases are so close to one another, with so many new products there accountants must be pulling there hair out balancing the MS budget. Its all good though keep up the good work MS the 360 and its software are doing fantastic and GL with the Zune that’s a hard market with the IPOD domination and “TV platform products” hope this has more to do with TV on my 360 BABY!

Raist……………… you sound jealous it’s kinda been a trend lately from the Sony camp. I’m sorry your expensive DVD player, oh crap…where are my manners I forget how sensitive you guys are on that, I mean gaming console (Laughing my freaking A$$ off) isn’t doing so great. MS took a hit on launch consoles with repair and warranty and was still able to turn it around and come out on top (that is good business).

PS Raist when a business is really in trouble you will see a word that means death to profits its called “layoffs or mass layoffs if your screwed” I don’t see that word anywhere in fact all I see is more employment.

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