Xbox 360 Division Loses $1.26B in 2006

According to Next-Gen, Microsoft's Xbox 360 division has lost $1.26-billion in fiscal 2006. What are your thoughts?

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calderra6342d ago

During the 3 months prior to March 2006, Microsoft as a company made over $10Billion in profits. The game division is expensive, sure, but it barely makes a dent in the overall picture.

By the time of launch, Sony will have invested on the order of $2B on the PS3, counting all aspects. Sony's ENTIRE company (all divisions) only makes about $1.5B in profit per YEAR.

So with this loss (which is smaller than PS3's initial investment- not even looking another year down the road), Microsoft is making money at about 3x the rate Sony is. Geeze, how will they survive?

bullet6343d ago

Waite until we see Sony's ps3 losses...

Capt CHAOS6342d ago

The costs on the PS3 might well be alot higher.. However, I'm not sure that they plan on shipping as many units over 2007, which might help ofset the loses a bit more. I feel that they'll sell more so from 2007 Xmas, at still a loss, while the 360 will prob be on profit by then..

All interesting stuff though, I wish I had a slice of that pie though.. lol

zonetrooper56343d ago

MS will turn a profit sometime near the end of 2007 i reckon. But haha the PS3 will not make a profit until at least 2008 unlike Nintendo who will make a profit at the start of the Next generation Consoles, which is the Nitnedo Wii.

FadeToBlack6343d ago

Because the Wii is over priced for what it is. i wont be paying $250 for a machine thats barely as powerful as and xbox that can only do 480p. Probably cost them less than $100 to produce.

Captain Tuttle6343d ago

It's time to buy stock in Nintendo.

hamburgerhill6343d ago

This isn't my department so I could careless! I mean of course it's a bad thing to lose money but in this generation it's going to take money to make it! The real question should be how much money MS made in software and service sales, but then again im a gamer and all I need to worry about are the games and that's it!

TheMART6343d ago

MS and Bill have pockets deep enough and earning needs investments first.

I think I read somewhere Bill said he reserved 20 Billion for the XBOX brand to succeed. So they're not even on 10% of that budget.

The fiscal year of 2008 (starts on July 2007) will show positive earnings on 360 they already stated. Business model is healthy!

Unlike that of the PS3. Every 10 million units Sony lose 3 Billion freaking dollars. With the low number of real need to get exclusives (only Resistance is named by many game reviewing sites) I bet they can't make up any real earnings, the network is free (well I bet they'll charge you on variable basis, but well).

MS is doing just fine. And it's good to see they invest so much on the concept. That is a good thing (if a company has the money though)