Microsoft Loses $289 Million in Q2 With Xbox 360

The losses Microsoft incurred during the second quarter of the fiscal year had nothing to do with sales or lacking demand of their products in the entertainment division. Instead, the losses have stemmed from a rather unfashionable rise in Xbox 360 console replacements and repairs.

Any gamer who has been keeping track of the constant claim of 360's shutting down, burning up and crashing, you'd have to wonder how well that fairs for Microsoft's profits. Well, it doesn't fair well for their profits. That's why they lost $289 million dollars in expenses for replacements and repairs for the Xbox 360.

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BIadestarX5730d ago

Is this suppost to be bad news? At least microsoft is paying to fix the consoles. Ohh yeah, while sony fanboys try to focus this lost only on repairs, don't forget to mention Zune research & development, production and that microsoft is probably selling it at a lost. And all the advertising microsoft it's spending on promoting the product.

DJ5730d ago

To spend almost 300 million dollars fixing your own product? That's ridiculous.

Then again, not a single one of the 360s over at IGN's offices has survived so we can get a pretty good sense of how many consoles Microsoft has had to replace. In some instances they didn't even fix the console; they shipped brand new units to unfortunate customers.

It's nice that they replaced broken units, but it's a horrible sign about the quality of the 360 console if it breaks down so easily. I think one of the main reasons it's probably not selling too well is because so many people have heard horror stories about 360's breaking down for no reason (or due to updates).

Marriot VP5730d ago

the warranty is to the end of 2007, and I consider that very generous and it should fix their problem.

The Snake5730d ago

I'd rather they spent their money replacing my broken product than me spending mine.

TheMART5729d ago

Oh well there we have DJ or may I see BJ again.

But it's the worst Blow Job I've ever seen. Don't please Barbie Ken so much dude.

May I remember the PS2 with it's sh!tty DVD drive? That one broke down so soon and Sony didn't repair, let you pay a high amount of money.

MS cares for it's customers you see. Sony doesn't.

That's the bottom line. And if you make a 90 day warranty to be a full years service, yeah that costs money.

“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.” So while there were loses, Microsoft still pulled out on top with some pretty big profits."

I know a guy that works at a company that makes stuff for the WiFi and BlueTooth wireless controller stuff. They have a PS3, a Wii and a 360 at work ofcourse.

The PS3 got so freaking hot they could grill for real some meat on it. After 3 days the thing just stopped working.

I guess that's the problem you get when you build in the powersupply extra generated heat the machine can't take.

shotty5730d ago

$289 million is actually small change for what the xbox devision did for microsoft and establising the xbox in peoples living rooms. They rake in $40 billion annually, the xbox 360 boasted sales of mediacenter, zune and will likely boast sales of Vista Premium so people can get the new media center features.

Raiyel5730d ago (Edited 5730d ago )

almost 300million dollars worth of faulty hardware, i guess the xbox was properly manufactured, expecially for the 'future' where technology shouldn't work after a while because it pretty much breaks itself.... so far sony hasn't had to replace any units... hmmm

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