Microsoft's COO has reiterated that the software giant "believes" in the gaming space, even though the Xbox 360 continues to be a money-losing business-after all, "it took seven, eight, or nine years before Windows was profitable."
Since Microsoft entered the console market in 2001, the Xbox strategy has been one of heavy investment, leading to significant losses in its home and entertainment division.
The losses are clear in recent financial reports. For fiscal year 2005, Microsoft's game division posted a $485 million net loss. In fiscal 2006, ended June 30, 2006, the division lost $1.26 billion.
Microsoft COO Kevin Turner told San Jose Mercury News journalist Dean Takahashi that the heavy losses are all part of making Microsoft an increasingly viable player in the games space.