It's been a strange week or so for the folks at Xbox. Their best known spokesman just left for Electronic Arts, that whole disc scratching thing is moving into legal territory (again), and, to top it all off, on Friday your division posted a 1.9 billion dollar loss on its final year-end numbers.
Overall sales of the Xbox 360 were down across the board in the last quarter -- from 1.8 million units in fiscal 2005 to only 700,000 units in fiscal '06. Additionally, the division has been forced to absorb $1.2 billion worth of punishment for their recent upgrades to the 360s warranty and maintenance program.
Total revenues for the Xbox division in the fourth quarter stood at $1.16 billion -- a 10% drop, compared to last year.
In addition, Microsoft's software sales (Xbox and PC) fell 28 percent last year to hit USD 265 million -- which obviously doesn't help matters any. When all the unexpected costs are factored in the numbers represent losses 47% larger than last year's deficit for the entertainment and devices division (which also includes things like the Zune along with the 360).