Microsoft: Xbox Gaming Division Now Profitable

Microsoft posted unaudited operating income for its first quarter ended September 30 of $165 million in the Entertainment and Devices Division, compared to a loss last year of $142 million.

Microsoft has been reiterating that its Xbox business will be profitable throughout this entire fiscal year, a feat yet to be seen in Microsoft's videogame business.

[Bloodmask]

Halo 3 has put their Xbox division in the profitability margin. Despite what all the naysayers might have to say about the hardware.

Overall with the Falcon chipset out and a revision of the motherboard. 360 failure will be a thing of the past. And with 3rd parties using Xbox 360 as their lead platform of choice. The remainder of '07 and 2008 will more than likley be a great year for the 360.

[marinelife9]

Keep it up Microsoft we need you to stay in the competition to keep Sony on their toes.

[unlimited]

losing 1.5 billion dollars isnt going to get them on top..and there no proof of any future 360 falcon chipset or any revision..lol..the 360 till this day is crapping out on thousands and thousand of people..it wont go away anytime soon..ill admit 07 they did good but in 08 i dont see no game plan from them..

I will never get the 360 until they actually come out with a revision ..im not the type to buy a defective items because its stupid to buy somethin knowing it will break..and im not goin to keep on sending it to them to fix it because its a hassle and take up time.

[ReBurn]

Losing $1.5 billion, huh? It would appear that those losses are now a thing of the past. And the 360's hardware is going through revisions. The CPU and GPU are moving to the new 65nm manufacturing process and they are including HDMI on all models to consolidate costs. And we're hearing less and less about RROD, so that problem is coming under control, too.

I don't know why people disparage Microsoft. Spending that $1 billion to own up to the RROD issue is the best investment they could have made in the situation. They took responsibility before they were sued, unlike some other console manufacturer I know of.

[MANTIIS]

Until they make up for the 1.5 billion (which is actually a modest figure)that thier game division has drowned in since 2001, being in a slump is not a "thing of the past." They have only profited this single fiscal quarter-it does not make up for six years of operating in the red. Now that Halo 3 has done its biggest damage, it will continue to be a factor with each succesive quarter (but its impact will show decline each time)until it critical masses. By that time I am curious to know what games MS has in store to deliver such an impact as Halo 3, and keep themselves out of the red (especially with rising repair costs to the defective console). Lower production costs will help with the new chipset, but the 33% of the 12 million defective systems (and rising) will likely remain the most prevalent factor of a declining system, along with the inabilty to match the number of quality exclusive games of its greatest competitor. In short, this small victory of MS's most certainly cannot construed as "winning the war." Let's see where these current systems rank after the typical two year period of financial loss before console's make thier money back on software puts them. Considering the Ms's credibility/reliability (zero), and inferiority of hardware w/ not enough quality future games...it is not hard to deduce the answer.

[DeadIIIRed]

Are you talking about the console manufacturer that spent time and money to ensure their consoles quality before release? What an a**holish move by them instead of releasing a faulty system, then spending a fortune on the unofficial recall.

[PS360WII]

Good start now for it to stay in the black.

[jcgamer]

"Hoo-ray, Hoo-ray! Ding-dong, MS is outta tha red, outta tha red, outta tha red...ding-dong, MS is outta tha red!" lol...hey, good going for the MS bunch...and I'm just kidding, by the way...I'm very happy for them...

[power of Green]

WTF? that was the most rabid childish crap I'v heard in a week on this site makes rabid Sony fanboys look good. lol

[Hugh Hefner]

You dont want to start losing all those bubbles now do you?

[mighty_douche]

dude, why do you care so much about sales numbers and profit?

are you bill gates undercover? no..

does M$ profit effect you? no..

does M$ profit = higher quality games? no...

are you just acting like a child? yes...

this is a web sitre for game information, personally im not sure why all this sales figure crap gets approved. yay sony sold more... yay M$ sold more... that makes my live so much more important...

you act as if M$ sales are some for of personal success, when in reality you own a cheap piece of harware that plays GAMES like allconsoles, its not your girlfriend mate!!

[jcgamer]

now, Power of Green, lighten up...no sense of humor?...you and I have been through this before...remember? and I have 9 BUBBLES so I can afford to have some fun sometimes...I happen to be a proud 360 owner...so lighten up for real...you guys sure know how to kill a JOKE...I rep the ps-360 homie, so Power of Green, you have a problem with me anyway, now don't you?

edit: and disagree all you want, Power of Green, doesn't hurt me any...no love, or bubbles, lost here...try me...you don't want that beef, trust me...

[season007]

nothing is better than a laugh in the middle of the day

[jcgamer]

thanks bro...bubbles up for you too...

[BLACKJACK VII]

LOL, Chill... jcgamer is a good guy. He loves his 360 & is by & large is a pretty unbaised dude. He also hates fanboys on both sides. Hence all the bubbles...

LOL, He can't help it if he can't crack a good joke....

=)

[jcgamer]

thanks bro...now, everyone, BLACKJACK VII is the man, for real...and knows how to tell a good joke...I thought I could get by telling a joke by now JACK, but I guess I can't...I knew it was going to be hard to appreciate both systems, without forming some enemies, but it's really tough...where's some new Mass Effect news to get me back in a good mood?!

[BLACKJACK VII]

LOL, man I don't think there is much more news they can release about MASS EFFECT. I just want to get my dirty little paws on it. Hey, if you want a good laugh, check this out:

http://www.youtube.com/watc...

Funny Sh!t !!!

[Kuest]

Man, oh man, is it stuffy in here!

Jeez, I can't even brea- wait...

Is somebody making a JOKE. Seriously? Dude, somebody warn that guy quick... he must not know that anything funny blows up into hot air. And its way too stuffy in here.

No worries, jcgamer- I gave you bubbles. Perhaps, YOU will be the one to get to 10...

[jcgamer]

sup Kuest...another guy who makes great and witty comments...you met BLACKJACK VII?...JACK, shake hands with the man Kuest...he's into Mass Effect like we are...in fact, MORE than we are, if that's possible...lol

[Kuest]

I believe we met on a couple of occasions? Maybe, maybe not.

And, yes, I LOVE Mass Effect... apparently, you guys do TOO. I'm not alone.

I smell a brotherhood...

[power of Green]

Thats not funny, dude set a fanboy flame tone in here.

The comment was no different from the type of people it was suppose to knock. The guy's like Meus and Deep brown.

Lets walk into a Beauty Salon scraming "you bunch of whores shouting with GLEE..." they may not all be whores but it is sure a stupid thing to say.

I doubt somebody would say such a thing without purposly trying to express how they feel about fans of the console. Could Elite 24 gamer or I say that in a PS3 thread and get praised for it?. I should try it.

Come on Y-TF would somebody say something like that?.

[BLACKJACK VII]

Yeah man, I've ran into Kuest, definately a good guy. We've chatted about Mass Effect B4. Ahhhh, those were the good old dayz... we were just innocent kids then... well, peace out guys, LOL, the GF's is here & she's eyein' me like I'm in some kinda chat porno.... gotta go spend alittle QT.

MASS EFFECT FTW !!!!!

LOL, power of Green, check out his comments in his profile if u r that concerned. I know him well enough 2 know he was joking... lol, maybe a bad joke.... ppl *in general* should lighten up on this site, I know I've learned to. Bubbles up 4 u Green. Peace.

[Kuest]

I think its pretty obvious that jc was making a joke. So, don't get a fever over harmless comments.

Seriously, man- just let go... It's no secret that you already have enough on your plate.

[AngryTypingGuy]

Yeah, I'm pretty sure he was just joking. He obviously is a Microsoft fan, look at his picture. Let him be, and if you took away bubbles, you should give them back when you have the chance.

[power of Green]

Let it go?, I leave and come back and his comment has 15 replies and you're telling me to let it go?.

lol Based on me reading his comments or post history he has shown a much larger preference for the PS3 and it was an attack posted in a way that councils its intent.

Let it go" I made on reply hours later at the time of your post. I do not base opinion due to what was said at the time, when I say something its because of the post history. Remember I'm not the one sitting by this comment for over 2 hours.

Nothing on my plate...

Hardcore fanboys I like better than somebody keeping one foot in and on foot out with preference(not you).

Have a nice day...

[jcgamer]

and with that lackluster and clearly false 5th post, POG, I see you're fresh out of bubbles...you're ignored by 115 users...nuff said...you'll get to 200 before I get to 10...

[Kuest]

what you're trying to say POG.

"Remember I'm not the one sitting by this comment for over 2 hours."

Explain to me what the hell that's supposed to mean?

Contrary to what you may think- I'm not HERE all the time, scanning over multiple posts in search of anti-MS related comments/news. That's just not my cup of tea, thank you, so I HOPE you'll excuse me if I responded two hours late. So sorry.

Anyways, POG, are you paranoid? No, well it certainly seems that way. I mean, in what SENSE does jcgamer (who has Marcus as his avatar) seem PS3 biased. To most NORMAL people on this site, it would appear the other way around. But, then again, I guess we "common folk" weren't fortunate enough to be blessed w/ your PHYSIC intuition. Dear me...

Like I said earlier, POG- let it go. You're only making yourself look petty and insecure by getting worked up about a JOKE that you (for some mysterious reason) found "PS3 biased". Who cares? Did you read the news? MS's gaming division is making a profit!

Celebrate... laugh a little.

edit:

And there's Pistol Pete. You see, POG? You should have just took a Budweiser break. It was bad enough w/ just Sony fanboys against you.

[pilotpistolpete]

Hahaha! Funny stuff right there. IF this was high school, POG would be the nerd no one likes.

"Not funny guys!" says POG through his retainer.

[jcgamer]

lol...I should hire you to write my jokes...mine didn't go too well...rotten tomatoes...lol...cheers and bubbles up...

[Xi]

i guess this means that MS is in it for the good.

[ry-guy]

You are still going to get your idiots that claim that Microsoft is still pulling out of the console business.

According to them this is just a sign.

However, I am glad to see Microsoft finally posting profits for the Gaming Divisions. It has been far too long since we have heard that type of news.

I hope, personally, that this means even more competitive for 1st party material and we can see highly competitive system sellers on both sides of the lines. If Sony continues its downward swing (which it is, I'm sorry) than we might get stagnant. However, Sony did dominate with its PS1 and PS2 but still followed up with quality games.

Who knows. I apologize. I rambled.

[power of Green]

MSFT should give up some tid bits on the fall dashboard update.

The 360 has some stellar games coming from here on out.

Mass Effect will be the start appealing to many demographics. If MSFT can market Mass Effect right this could be huge.

MSFT's Xbox 360 being a set top box for IPTV with all its HD content and features; is when we'll see an explosion of 360 sales. People will be buying 360's for games and multi media reasons still selling a game or two or 10 to the people that bought their 360 as an alternitive to other HD content sources for HDTV.

The point is we havn't seen anything yet when it comes to MSFT making money.(Companies can buy 360's straight from MSFT in bulk accourding to the info i read about the IPTV launch in Europe coming up).

[mighty_douche]

so halo sold what 3.5 million and they still didnt manage a huge profit?

wow, from that youd think that halo 3 want even HD or somthing...

sorry been drinking, release the inner fanboy...

[vgn24]

If only Ratchet and Clank could get the PS3 out of the red. lmao. I miss the good old days when Sony and MS were going at it. Sadly, this surge for MS is just another sign that it's gonna be Nintendo and MS instead.

Hopefully Sony learns from MS and makes a stronger showing next gen.

[mighty_douche]

how many consoles did the 360 sell in its first year without competition?

how many consoles has the ps3 sold in 11 months WITH competition?

you guys are so fickle... yay i own a 360 so ive got to defend it to the death... its just plastic and copper, it doesnt love yo back freaks..

EDIT... lol i see you disagree yet none of you answer the question.

[vgn24]

You mean how many has Sony shipped. Sony reports consoles shipped, not sold. MS reports consoles sold. The difference may seem small to a fanboy, but statistically, it's a big deal.

You want to try again? Gotta love you fanboys. Do the hardware companies send you free stuff for looking so stupid?

[vgn24]

I call you out for your fanboy statements and you quickly edit your post to look like you're bashing fanboys. Nice try.

You realized how stupid fanboys look, but you are one. Hope they send you a T-shirt or something for all your hard work.

[ry-guy]

This has been a point covered before, and an excellent blog written by Twizlex.

The fact that Microsoft had that jump start over Sony has proved to be Sony's biggest hurdle yet. The software sales, due to that jumpstart, is what sways published to push harder for the Xbox platform over the PS platform. Developers have been dragging their feet to learn the Cell because of the sheer fact there is no profit in it for them.

Until the Playstation 3 begins to cover lost ground over the Xbox 360 you cannot use the year headstart as justification to claim the Xbox 360 is not worth its salt to the gaming industry.

Yeah, I have been drinking too. Have one on me.

[andy001]

Sony report consoles sold, I thought it was Microsoft who stated consoles shipped?

[jack who]

Xbox Gaming Division Now Profitable

Losses in Sony's games division double

[eleaz14]

why you had to bring up sonys loses
you just prove yourself as another fanboy

[mighty_douche]

this is for any xbox fanboy here...

lets all get our suits out and pretend to be M$ execs.... gaming isnt important anymore, only sales count... yay!

[Kuest]

have some fun.

[codeazrael]

I feel like cracking open a bottle of the bubbly! Congratulations Microsoft. It's been a long journey but now the sky's the limit! And for all those who hate.................JUMP IN...my @ss!

[PS360PCROCKS]

I'm agreeing with your avatar not your comment! :D

[God of Gaming]

Id like to request if you use that avatar please do not use the word CRACKED in any manner... :)

[xplosneer]

Thank god though they won't be out of the buisness for the next-next generation.

[ktchong]

Xbox has just put Microsoft back onto Goldman Sach's "elite" list of company-to-buy. Halo is giving MSFT GOOG-like results for the first time in 8 years. MSFT had not been a growth stock for a long, long time. Now Xbox and Halo are putting MSFT into another growth cycle.

Basically, Xbox 360 and Halo 3 are now driving the growth of MSFT... why would MSFT want to give up on that?

[mighty_douche]

maybe cos theres no more halo?

remember M$ completely dropped support for the xbox once the 360 was released.

oh and sinse vista came out my PC running XP hasnt updated.

you people have serious issues, you act as if M$ is something that effects you personally, when inreality, just like sony or nintendo, they are a business that doesnt give a sh1t about you or me.

[xplosneer]

I was just pointing out that Xbox hadn't turned a profit yet and some stockholders were mad about it. And it's my point, they don't want to withdraw.

[Sangheili85]

Microsoft is still testing Service Pack 3 for XP which is due to release this year (last i heard they were shooting for that) Also they extended the sales and shipping date for XP. Which originally was suppose to end this year. MS also were the ones that admitted if your using your computer for business don't buy Vista stick with XP untill they work out more bugs. So no they didn't already drop XP.

[Game Crazy]

Congratulations Microsoft.

All fanboy hate aside. You have to admit Microsoft is a real player in these so called console wars. They may have made mistakes in designing the console, rushed the launch, and still arent selling worth a damn in Japan. But the bottom line is the 360 is the market leader right now. Wii may be selling more hardware, PS3 is selling Blu-Ray movies, but the 360 outsells the Wii and PS3 combined when it comes to software. Thats why the 360 is starting to make money, it always comes down to games...

[sleepbox]

Remember today as the day the tides turned and Sony became sloppy seconds

[eleaz14]

about constructive news about the 360?

or is just another flamebait to bash sony?

i thought it was the first one, but because of people like you, it will lure a lot of PS3 and 360 fanboys like you

[Charlie2688]

This is thanks to Halo 3s ULTRA MEGA HIT...but AFTER?

I think MS needs to slow down its price cutting and new SKUs a little and let the 360 hardware become fully profitable (like the PS2 did back in the day) so its figures for the gaming divison dont go to the red again next Quarter after the Halo 3 effect is gone

Is intersting to see how Halo 3 was a BRUTAL profit machine since it managed to show some green numbers for the 360 divion for the first time a thing not even Gears of War could do

[waldopepper]

Yeh Halo3 definitely managed to boost the numbers, but remember it also boosted hardware sales which will in turn lead to more software sales from new users.

I think MS have a better reason to drop the console price to drive hardware sales than it's competitors - because the software attachment rate is so high that taking a slight hit on hardware is easier to make back elsewhere.

[OC_MurphysLaw]

Actually I do believe MS held their launch prices longer than any previous console had ...or atleast longer than the PS2 did. On top of that...their first price cut wasn't terribly huge. I suspect they will cut another $50 across the board in early 2008 just after the holidays. They are going to want to put a dent in the launch of MGS...and dropping prices another $50 is going to make the 360 very attractive

[ktchong]

SNE's game division's losses have doubled since March compared to Q1 + Q2 last year, and SNE said that PS3 would likely miss the sale target of 11 mil units for this fiscal year ending March, and the game devision would "try" to become profitable for the 2008/2009 fiscal year.

While at the same time, MSFT EDD becomes profitable for the first time. Xbox 360 and Halo 3 have just put MSFT back onto Goldman Sachs' "elite" list of company-to-buy. MSFT is getting GOOG-like results for the first time in 8 years because of Halo 3, and everyone is saying MSFT is entering another growth cycle because of Xbox and Halo.

This is like a watershed moment. It's like the beginning of a new cycle.

Edited By ktch

[IntelligentAj]

It's great that the company posted a profit for it's games division but it wasn't only Halo that accounted for the WHOLE company being put on the must buy list. That being said the 360 is in it's second year now and it's posting a profit which has happened and is expected of most gaming divisions for as long as I can remember(I'm 23). If Sony doesn't post a profit by next year(it's second year)then you can start saying that Sony is in deep S**t. Kudos to Microsoft!!! and death to Apple!!!

[IntelligentAj]

This is great news for Microsoft and by extension gamers also. I won't buy a 360 now because it's doesn't appeal to me for $349 but if they cut the price one more time(which they might now do because they aren't in the red) then i'm definitely buying one. Having both consoles for less is great!!!

Why would you disagree with this??Please explain why you disagree instead of just blindly hitting the button

[Real gamer 4 life]

Well this is good for microsoft but, its been out for two years and has released its heavy hitters. i congradulate them, but please reframe yourselfves from bashing sony when it only has one year in the market and hasnt released none of its heavy hitters. Microsoft is doing good but sony is not doing good as microsoft but is not doing terribel either.

[Pain70]

for the quarter are 1.3 million.

360 US sales are at 1.8 million. who keeps worrying about the rest of the world? Keep it up MS!!! my attach rate is currently at 44 games. as long as you keep me gaming, i'll keep giving you my money!!! Luv my 360. RROD be Damned!!!

P.S. why are PS3 movie watchers reading an article concerning the OUT OF CONTROL revenue and profit of MS? Can't you gamers find something to read on your side of the website?

[Bnet343]

stop making true Xbox 360 owners look like fanboys you butt crunching baboon. leave PS3 fans alone you ass, get out of here

[Pain70]

you stop making all college students look like know it all, smart mouths, who want to label everyone but themselves! if you truly are disgusted by fanboys, who in the hell is going to buy something you program? fanboys like me, give people like you want to be paychecks!!! its life, deal with it. BTW, hope you don't cheer at sporting events you attend. Fanboys of schools really P me off!! OUT!!!!!!

[power of Green]

You both make some good points I agreed to both of your replies to the original post.

MY Take: The rest of the world always takes longer to catch up to the USA in popular trends for obvious reasons.

[Bnet343]

I'm not even in college yet you dingus, I was simple telling your little four-leafed ass to stop turning this into a flame war. Obviously when I'm at Microsoft, yeah I'm not going to bother people like you because you bring in the money, but right now its a diff story.

[Pain70]

Hypocrite

[Bnet343]

Wasn't there an article where they said they made 12 billion in their fiscal year? Anyway, I am happy that they are making money, I want to work at Microsoft as a computer software engineer when I get out of college.

[Umbrella Corp]

i dont care about the money i just care about how much fun i have but anywaz good for microsoft

[japanese_dawn]

I can sleep easy now that I know that M$ is making profit of Xbox finally. Nice money did Halo 3 make to both companies, but was it a console seller to make your life brighter =? Nope. I guess it's still in a shade of dark gray.

If Xbox fans survived the death of first console, I bet you can do the same again with this one. Happy Halloween!

[SF49er408]

Pretty much everyone who owns a 360 is a hardcore gamer. They buy way more games on the 360 then any other console. I love the 360 cause i like football games, shooters, sports games, shooters, rpgs, and shooters. Halo 3 im addicted to, and all the 3rd party games are on the 360. I could care less about different genres, this aint japan this is America the biggest marketplace for consoles. people here like violence and shooters appeal especially to college kids like me. I want a ps3 but not now, no rumble (thats f**kin STUPID), and no games yet. Wait till like march theyll have another price cut, more games 4 sure then ill get one. Keep it up microsoft, i knew once they got in the game i had to jump on board, they have so much money how can they lose.

[doomsonyman]

i think just about every intelligent person no scratch that any person with a brain knows that microsoft game divison costs that company billions. come on RED RING OF DEATH, 3 YEAR WARRNTYS!!! like peter dillie said microsoft has never made a dime in this bussiness.

and as for halo 3 almost every sony game last generation sold more then 3 mmillion copies this includs ratchet and clank jak and daxter sly cooper socom twisted metal and the origenal god of war. son in my honsst opinion and from a commen scense prespective halo 3 really isn't anything that special

so my conclusion stands microsoft are the rightful failuars of this industry. there not market leaders, hell they can hardly create family oreinted or casual games. but let me remind you that sony doesn't have that problem aND are the true innovaters of this industry. little big planet innovation singstar innovation home innovation. name one thing that microsoft has done this generation that can be considerd market leading. and no xbox live doesn't count

[Xi]

obvioudly you have no brain, it says right in the title that MS is in the black even with all that stuff. Stop trying to spin the article, it is what it is, MGS is now profitable for the first time since the original xbox release.

[Bladestar]

Zzzzzzzzzz... Done? Now count to 10... take a deep breath... feel better? you are some little angry midget... Move on.. get over it... people like the xbox 360 and the games available for the console... there is nothing you can do to stop that... the xbox will not go away.. stop losing sleep over it's existance... buy a PS3 and enjoy it... buy another one if it makes you feel better... tatoo "Property of Sony" on your left butt cheek and enjoy life...

[PS360PCROCKS]

Lmao every game you posted sold over 3 million? Ok assuming that's correct, those games sold 3 million on a console that has sold OVER one HUNDRED Million. Lmao you moron, Halo 3 is close to 4 million copies sold in about a month on a console that has sold roughly what 12 million? That's 1/3 of the gamers bought the game, that's SPECIAL. Let's see 110,000,000/3,000,000 = about 4% of the PS2 people bought those games. Yep I see your point.

sanghelli - lol no I said "4 million copies sold in about a month" haha good point though, that kid is really ridiculous.

[Sangheili85]

I don't get it. Its right there. I mean RIGHT THERE! When you type your post it says "Spell Check" in bold damn letters. You fanboys can't even take 3 seconds to press it? Instead you look ridiculous because your post is so badly wrote.

Oh and don't spin the story MS is finally making money off the 360. Sorry the PS3 isn't.

Hey, PS360ROCKS
You forgot to point out to Doom that those games sold millions over how long of a period? Halo3 sold 3million in what a week?

[Bladestar]

Xbox Gaming Division Now Profitable... bottom line.. fact..
Hopefully Xbox haters will now shut up about it.
The Xbox Gaming Division is not profitable which means we don't have to hear people predicting microsoft pulling out of the console race because... uhhh they can't aford it.. (lol)...
The xbox brand is here to stay... it prove it can make money...

[IntelligentAj]

No argument on that one but you can't deny that Halo 3's phenomenal sales had a big impact on the division's bottom line. That being said I hope they(the gaming division not the whole company)can keep operating in the black because a price drop won't be far off.

23.2

Good point but I don't think that the Shareholders would accept perpetual losses from that one division though it may or may not happen. The overall health of the company isn't anywhere near danger but anything that cuts into investors money isn't going to make them happy.

[Bladestar]

Interesting you mention the price drop...
The Xbox Gaming Division being profitable is not critical for microsoft as a company since they have enought revenue streams to back it up.
On the other hand the Xbox Gaming Division is critical for the future of the company since it will open other revenue streams and expand and benefit of other divisions. Microsoft needs the Xbox Gaming Division as a portal into people's living rooms and to make other services like IPTV possible... also it expand their development tools like Visual Studio into game developers... even SQL server as a datastore for online enable games.
Don't think for a second that microsoft will continue to be willing to leave the Xbox Gaming Division on red in order to make the other divisions even more profitable.
Expect a price drop soon. This news of Xbox Gaming Division being profitable is proof of what's to come.. and to remind anyone that Sony can not go head to head against microsoft in a price drop war.

[Proxy]

It's nice how you quoted the title of the N4G submission.

Had you actually read the article you might have noticed that the article indicates that Q1 has been profitable for MS, and nothing more. Although it is a valid extrapolation to say this will continue.

The article says Q1 (only 3 months) were profitable, and that MS hopes this will continue. The title of the actual article "Xbox Division Posts Q1 Profit" would have probably been the most appropriate title for N4G. Instead, Bloodmask posts a title that has people thinking the division as a whole has finally moved into the green. This is comparible to a Sony fan posting an article titled "PS3 has sold more than XBox 360." They wont mention that it was only for one week. Just like Bloodmask didn't mention that "MS Gaming Division Now Profitable [when considering only the last 3 months.]"

A hater could still say "MS gaming venture has, as a whole, been unprofitable." and it would be true. But why hate?

I will be victim to hit and run disagreers, but nobody will be able to put up a real arguement.

[fenderputty]

I agree ...

Xbox is here to stay. I'm glad too. I'll eventually get one. I don't have hate for MS. Glad they're making money now too. I only with some of you guys would stop with the Sony doom thing too. Both sides of the fence look foolish for saying so.

[FirstknighT]

This was a no brainer...all you have to do is look at the recent total game sales...

Forza 2. 1.3 million
Bioshock: 900k
Madden 08' 1.4 million
Halo 3: 5 million
Orange Box, Mass Effect, COD4, PGR4 will sell another million each for sure.

That is some serious moo-lah!

[gogators]

but I don't see PGR4 even getting close to million copies sold through this year.

[PS360WII]

Guys it's a 360 & Industry news report. Lets just keep it at that. Well done is due for MS but why the need to rub it in? Who has a bigger loss to regain?

[Oncnawan]

No one is trying to "regain" past losses. Stock prices reflect the market's valuation of a company's FUTURE prospects; they are not a club held over a company's head for past failures.

[ReBurn]

See that's the thing, once the fiscal results are in they don't try to go back and "regain" losses. It doesn't work that way. Last year's losses are written to the books and this year is a whole new animal. Besides, if that's the way this is going to be attacked, I would imagine that Sony's losses are going to be tougher to overcome considering how much money was invested in Blu-ray and the Cell processor compared to the parts in the 360.

[nobizlikesnowbiz]

MS's advertising shots all over Sony's. I swear I barely ever see a Ps3 commercial, and when I see one, I wonder if I've taken any psychedelic drugs in the past few hours.

While MS on the other hand is appealing to the average consumer with more sensible commercials of people having fun playing their GAMES. Just the other day I saw a new commercial of a crowd having a blast playing...wait for it....Mass Effect, Bioshock, and Halo 3.

Advertising wins consumers folks.

[Xi]

with the crowd buidling the entertainment room, I also remember seeing a lot of Heavenly Sword(s) commercials, more so than halo 3 commercials.

[fenderputty]

in the marketing department. I remember seeing plenty of PS2 commericals with FF games and the like. I hardly ever see a PS3 comercial.

[Mikelarry]

even more good news for ms yay. i dont think they rubbing it in look @ how long it took them to make profit on the console its only right they celebrate.

[PS360WII]

Oh yea the report isn't rubbing it in. It's some of those comments above us and probably below us that seem to want to rub it in.

[Proxy]

To me this only says that XBox has made 165 million profit in Q1. In other words, they made a profit in specifically the last 3 months. This will no doubt continue, as they're out of the rough, and the year as a whole will surely be profitable.

The title had me believe that MS entire gaming venture had turned profitable, but in reality it appears to indicate nothing more than the last 3 months have been profitable.

[zonetrooper5]

Well I did see the big billboard for the £299 PS3 40GB when I was on the train today going to that EA "Be The One" Event which was alright, I really wanted to play Burnout Paradise and Rock Band but they didn't let you play it. :(

Anyways, that billboard was massive and you can see it when your coming into Waterloo station. I did see Simon Webb play Burnout Paradise and yes hes crap at games haha but the game looks awesome, graphically great and that was the 360 version. I also played the new Need for Speed and it was so boring, Skate was excellent and better than Tony Hawks and I played the simpsons game which is fun as well.

[gogators]

but did the financial breakdown suggest that MS is hoping to posts profits that will exceed 30 billion for this coming fiscal year. I thought only oil companies can post profits like that. That's got to be a mistake. Maybe with the high attch rate, MS can be aggressive this holiday season and drop their prices again.

[Lex Luthor]

Great news, xbox 360 is a seious money making machine especially with software.

Now sony fanboys can stfu about MS not being profitable.

[Vizion26]

The Xbox division made a profit for one quarter but what about the quarters after? Halo 3 is what drove their profits but the Halo 3 madness can't last long. Also remember the Xbox division has a net loss of billions of dollars. Unless Microsoft can make a profit each quarter from here on and ultimately make a net profit then one can say the Xbox division is successful. Until then it has been a massive failure.

Oh, it's not just the Xbox division that is a failure or failing, so is Sony's game division. Sony lost about 840 million for the fiscal year. http://www.gamasutra.com/ph...

The only company that is making profits ( and I mean massive profits) is Nintendo.

[bababrooks]

i think this is just reward for the great release of games that ms has had , it's a shame some people cannot agree with that. i also thought rfom was a great online game ,so far thats it from the ps3 appart from blue ray films. my opinion is that sony talk the talk but as of yet they don't walk the walk.

[PS360PCROCKS]

Well that's good news, I won't sleep any differently tonight...but I most assuredly will be happy knowing I will be seeing more games.

[kewlkat007]

I remember around this time last year things were not all peachy. Of course we all could ponder if MS didn't have to put a billion aside for Red Ring Issues they would of been in the black.

I seen a commercial the other day with Halo 3, Mass Effect and I think Bioshock as the 3 games that will be super HOT this holiday season and I guess MS did not need GTA after all. Mass Effect is next, I wonder how it will sell..

As a gamer that have owned all consoles, I won't grade Sony till after the holidays. Since it will have been a year and of course the 360 will always be a year ahead in terms of when it debuted. Besides the

Negatives that sorrounds MS there are plenty of positives. regardless of what they may say MS will own this Holiday season because of the

*Positives*
-Current Library of games(plenty which have sold 500K to 1 million)
-New Ip's and Multi-Platform titles
-Hopefully new "falcon" consoles boost gamers confidence.
-XBL and Demos keeps spewing(new Arcade hits)
-Accessories and game attach rate are very high.

*Negatives*
-Start reving that train and reveal some of the 2008 line-up.
-Get them "falcons" out already
-Measly $50 price-cut was not enough, Sony has answered twice(now Counter if you must)
-Needs more casual 1st-party games/Sleeper titles IMO(Sony did not get up there on just one genre) Yeah a divers library takes time...yada yada yada

Call it what you want, I do not see Microsoft Stopping, nor would I want them to give up, YES, even in lonely ol Japan. competition brings prices down and it keeps competitors on their toes.[*what I like] As much as I dislike sony's strategy and Arrogance this gen, I understand why gamers like the playstation Brand, but hey Sony did not come out the gates firing on all cylinders, so never expected MS, to have 100% market-share, well that will never happen, Sony came close the last 2 gens but we have a new competitor.

[dachiefsman]

time for MS to ship out the next-next gen system.....

*sarcasm

i am glad this happened now we don't have to worry about becoming the next sega saturn

[Kuest]

Your only realizing this NOW.

I'm being sarcastic, by the way.

Don't kill me... I saw what you guys did to jc.

Man, you guys got no humor.

[Eternal E 808]

i see a mothaf#@kin price drop coming and to all the drones that thought this day would never come yall eating thoughs words bad......ohh dont it feal good.

[TheMART]

360 makes profit, PS3 again a quarter of almost 600 million dollar loss. Every quarter over and over again between 500 and 600 million dollars gone. That's close to 2 to 2.4 billion dollar a year. They're even going to outdo the total amount of money that MS spend entering the market with the XBOX 1 (4 billion) and the money spend on the 360 on top of that.

[andy001]

Well, Sony expect to make losses the first couple of years, and then turn a profit which over the life of the console will hopefully recoup the R&D and the losses they made earlier and more besides to pay for the next R&D session.

It would be shocking to see Sony make a profit at this early stage, as that money should be spent on marketing, and publishing games. Sony also bought two software houses this quarter, which will have impacted the losses short term.

The question is, can Microsoft sustain these profits and then earn enough to recoup the R&D, warranty, and other costs over the life of the 360?

We shall see, maybe you will have a job flipping burgers by then and not have to ask mommy to buy your Mature rated games :o)

[Covenant]

Let's keep the Sony-bashing to a minimum...remember, they've had many, many profitable quarters from their game division over the years. The same with Nintendo, for that matter.

That said, it's good to finally see a profit from the 360...even after that $1.1 billion RRoD write-off last quarter. Could this be when Microsoft's entertainment division finally turns it around and becomes a profitable force, rather than Bill Gates' money-bleeding whimsy?

We'll see. Sustaining it will be proof that MS is in this for the long haul.

[Grinchy]

I have a question, but bear with me. i am in the uk and it is 12.45 am! Didnt microsoft set aside 1billion for the hardware problems? doesnt that mean they would of had to of made over 1billion to become profitable? i dont wanna start arguments, but am honestly curious as to how this works.

[Eternal E 808]

quick answer..Halo3 because if you sold close to 4 million copies and about $60 to $130 a peace for each different edition well thats allot of money so get it got it good.

[ReBurn]

That $1 billion technically was not a loss for Microsoft. It was a charge against profit and it is considered a sunk cost. It is not something that needs to be "made up" before the console can be considered profitable.

A lot of the spin comes about simply because of how people look at it. Some people look at it as if there's a bucket that the money comes out of and goes into. The bucket is filled to the top at first, and the top is the break-even point. Then the company takes money out to develop the hardware and software, leaving it somewhere below the top. They consider it a loss at that point. Once they go to market, the revenue generated goes back into the bucket and once the money starts spilling over the console is considered profitable. Along the way money comes out to develop more games and revise hardware, so it is always a fight to reach the break-even point.

That's how a lot of people look at it, but that's not actually the way it works. If that's the case it is going to take forever for both Microsoft and Sony to get that bucket back to the top. Rational people see the money sunk into the hardware as an investment that will later bring greater returns. That's the proper way to look at it, and that's how these companies look at it from a fiscal perspective.

[Grinchy]

reburn, thanks for a good post, nice to see some can still hold normal conversations here.

eternal e 808 - your an idiot. i asked a geniune question and you cant even give a constructive answer.

[creeping judas]

Excellent post. Amazing analogy, I think I may have to steal that one and use it at work.

[BigFART]

Too bad their sales will be steeply declining starting next year and beyond. The black beast that the PS3 is will be pounding the sh!t out of your 360 turds. Seriously, what exclusives do you guys have (2008) that are worth a damn besides GOW2?

Edit: Eternal, still didn't answer my question. (BTW, I dont recall saying that.)

Covenant: NEXT YEAR EXCLUSIVES!! Please tell me.

[Eternal E 808]

well thats what yall were saying befor the ps3 came out...and what happend ahhhh you tell me.

[Covenant]

Ummm....

Before the end of the year:

Mass Effect

GH3

Rock Band

CoD 4

Assassin's Creed

FEAR files

Kane and Lynch

In 2008:

Gears of War 2

Kingdom Under Fire: Circle of Doom

UT3

GTA IV

Alan Wake

DMC IV

Frontlines

Lost Odyssey

Splinter Cell: Conviction

Star Wars: Force Unleashed

Huxley

Ninja Gaiden 2

Mercenaries 2

RE 5

Fable 2

Project Offset

Too Human

Halo Wars

Banjo-Kazooie

I don't usually do these my-games-are-bigger-than-yours lists, but to state that the 360 has *nothing* to sustain it in 2008 is foolish. Not all of those titles are AAA+, but all of them are expected to be significant sellers.

Yes, some of these are multi, but their availability on the 360 only adds to the diversity of the system's lineup. More games--especially a greater variety of games--will help drive console sales.

The PS3 and Wii will also have a more diverse lineup next year, making 2008 another great year for gaming.

[Kuest]

Covenant. Its about time someone put a rest to these "360 has no 2008 games" rumors. Not only that, but you didn't forget to list Banjo Koozie...

I think you know what's coming to ya.

[ReBurn]

Anyone who's been following any of the "great 2008 exclusives" for the PS3 knows that the only reason there are so many great exclusives in 2008 is because all of them slipped from the holiday 2007 release window. They were all delayed. It doesn't take a genius to realize that the winter after a holiday is the slowest time for new titles because of the rush to get so many out for the holidays.

Sony's great 2008 lineup is actually a holiday 2007 failure, but nobody wants to call it what it is. I'm actually kind of ticked that so many great games were delayed, because they would have made all of the difference in the world for the PS3 this Christmas.

[DJ]

Without that release, the Xbox Division would have had a $150 Million loss this quarter. Hopefully Mass Effect and Too Human prove to be just as popular as Halo, otherwise they risk having more unprofitable quarters.

[Eternal E 808]

and how is that if halo 3 will continue to sell and more exclusives to come i think you should be more worryed about the ps3 and its losses.

[BloodySinner]

Without... Oh, that's right. The PS3 has nothing to save it so far.

[JasonPC360PS3Wii]

You know this is going to come around and bite ya don't you? I put my foot in it a few time myself, sucks when it happens like it's going to suck for you now. Thank god your a gamer and (should) have a thick skin.

BTW I just played R&C over at mt bro's house and it's deffently not a 7.5 but it's not a 10 ether. Yes Droids beware this Xbot plays "all" the PS3 games (know thy enemy). Anyway it's realy not a bad game, if PS3 owners want to help Sony then "all" buy the game, it's the best game the PS3 has (graphicly and gameplay) Now for my Xbot comment, even though it the best game on the PS3 in tearms of graphics and gameplay, it's still not Gears, Bioshock, Mass Effect, Halo 3(on a good TV) or even GRAW. Where is the MP support? MP is a staple now and Sony needs to learn this. Anyway my personal Xbot R&C review is an 8.8, MP would have sent into the 9s.

P.S. DJ I wish you had Live so I could strap some C4 to a jeep and destroy your team in Battlefield 2 MC or teleport into your base killing your entire team in Shadowrun.

[DJ]

Seriously, playing an RPG or an action/adventure title in multiplayer is not only bizarre, it's unnecessary. Games should be reviewed for the gameplay modes that are on the disc, not for modes that the reviewer wished was on the disc. Journalists can't act like the rest of us and simply whine over personal preferences.

"MP is a staple now and Sony needs to learn this."
Well, sadly, Sony isn't like Microsoft and doesn't force developers to heed their will. They let devs choose what's right for their titles.

And why did you guys get all offended with me saying that I hope Microsoft continues to do well?

[JasonPC360PS3Wii]

Guess that counts all those who play Everquest and WOW and all those other MMO/RPG/ACTION games that people seem to keep paying to play. Dude MP is a staple of gaming now, well that or 30+hr SP only games you need to get Sony to jump on the MP bandwagon.

PS I don't get offended, I can take what I dish out (realy love to argue)

[Bloodmask]

All I can do now is laugh at anything you post. Seeing as how you "pretended" to have a PS3 for about a year. Why don't you go read some more tech Blogs on Sony Defense Force so you can "pretend" you know what you are talking about.

[AngryTypingGuy]

This is great news, I hope MS will be a big player in video games for years to come.

[skagrerrrr]

healthy competition is good for all gamers!

[MikeGdaGod]

"Microsoft has been reiterating that its Xbox business will be profitable throughout this entire fiscal year, a feat yet to be seen in Microsoft's videogame business."

they made a profit in the first quarter. that doesn't mean they're out of the red. it just means they had ONE good quarter where they made more than they lost.

they're HOPING it continues. why are you guys so happy?

[Kuest]

occasion in which MS has actually made a profit.

Why not be a little happy?

[Real gamer 4 life]

The ps3 will came a comeback Wait till )8 gets here to many blockbuster exclusive.

[The Chief of Mjolnir]

Nah, I´m too tierd to wait.

I want to play NOW.

[ironwolf]

wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait.........

[guerojose]

Just so you don't have to go hunting for them:

Q1 06 -$173 M
Q2 06 -$286 M
Q3 06 -$402 M
Q4 06 -$423 M
Q1 07 -$142 M
Q2 07 -$289 M
Q3 07 -$315 M
Q4 07 -$1,199 M ($1.2 Billion)

Q1 08 +$165 M

[JosefTor]

Microsoft profiting has a lot to do with a gamer. If the 360 never turned a profit over its entire life, I think that Microsoft would very well think twice about the next Xbox. The first console they were putting their foot in the door, this console is where they most show results. Microsoft does stick with products and keeps on improving them till they are profitable but... sometimes they do exit a business so... yes... it is important for Microsoft gaming division to make a profit. Plus... that means they can lower their price if need be, buy some more talent and what not.

[macsto]

wow, Xbox 360 is a monster.

[Trebius]

I'm not saying this to put down the Xbox or its owners in any way...but no company should ever have to shell over almost 2 billion dollars because they messed up some hardware. If you think about it, those 2 billion dollars would have been pure profit if they just acted more responsible with their equipment instead of rushing it out unfinished. (like every single windows upgrade)

When it all comes down to it, yes the Xbox360 is the best system to have in the NOW...but I think long term...and if you have 1st gen xbox (which millions do) I wouldn't expect it to live past its 3 year warranty...once it's up, and it craps out, you lose that money. Thats the last thing I would want to happen to me...to have my system die on me even if I take care of it.

My PS2 has lasted ever since its first release date (it was released exactly today but 8 years ago) I remember it was released today because I also lost my virginity the first day PS2 was released. haha. but anyway...it's been sitting here on standby throughout all these years and i've never had a problem with it...thats what I expect from the PS3 also.

Thank you for reading.

[Xi]

I know they put 2 billion in reserves in case they need to do a recall but that does not mean that they spent 2 billion fixing it, these profits include the loses from all repairs.

[fanboyssuck]

I have had my original xbox since its launch day when Halo 1 jsut came out and was an unproven franchise and to this day I still can play my xbox with no problems what a coincidence! Seriously though yes I agree that no company should ever release a product that can be as faulty as the 360 can be ( I know because I have had my 360 RROD on me) but honestly Microsoft was very good at making sure they took care of me while I waiting for it to be fixed. Yes it was the first console I have ever owned that broke on me but honestly it wasnt that bad of a thing. Its nice to take a break from games man.

[rayc0013]

This is actually the secound time the Entertainment Division has made a profit. After Halo2 was released the posted there first profit, for the quarter. So now the challenge is to see if they can keep that up. Through the rest of the year and next. Overall yes they are still loseing money but the entertainment division also includes the ZUNE and other divices.

[gw4k]

Yes, while they are actually bringing in money now, it is in all reality no way a profit. The amount that has already been paid in will take a long time to make back.

But you are talking about MS! This company can lose billions and that is only a small fraction of total profits!

MS is really shaping up to be a force to reckon with! In the future you will see MS really dominating the gaming market. The games are here and coming, their online portion is extremely good and only getting better! They have the connections with the developers and more and more are jumping ship from the PS3.

The Wii is in its own world and shouldn't be compared.

[gw4k]

This is always a good thing for any company. MS deserves to be making a profit. There system is great! Sure it has had its problems, as I have had to return my system twice now...but in the end, so far it is my favorite system and I have all three. The online is great, it is smooth and offers a LOT!

PS3 has a long way to go and I only hope they can get it together!

[Sez]

i think this is great for MS.now people can get off the oh oh MS isn't making any profit and should just leave the console biz. i will make a deal with MS. they keep putting out good games. i promise to keep buying them. MS: deal , me: deal. and we shake on it.

[JasonPC360PS3Wii]

Xbox has been doing this from day one, the billions they put in for the 360's (silent recall) will now be made back. With so many multi million sellers and high attach rate that keeps going higher while Sony is stagnant. Sony and Sony fans should realy concentrate on keeping the Playstation brans around, your methods of stoping MS have failed and as a result the system you defend has suffered. If you put as much energy in buying PS3 games and not so much trying to take down the Xbox with lies, blogs and petitions, you might actualy push the PS3 sales past 5 million this year and get an attach rate of 4. All the blogs, lies, rumors and ,ade up BS news from you droids in that past year have meant absolutly sh!t (you failed)

[gw4k]

Isn't the games, or the systems but it is the fans.

I can not stand reading stupid posts from fan boys...of either system.

Talk about being ignorant!!! When I read a PS3 fan talking smack about the PS3 is "god" and the "Xbot" is "crap," makes me sick. I can not stand one sided opinions like that.

Why can't everyone appreciate all the systems...as they all offer there own specialness! Go PS3!!! Stop letting us down (PS3 fans, you can't say that Sony hasn't been....you know better)!

360, keep up the good work (but get the systems running full time haha, I am tired of getting them fixed)!

Just a random thought!

AlSO....As for Jason xg1 and his comment below mine....What a tool! haha

What are you talking about man? You are at least 10 times more antisocial than me....You have way more posts than I do.

haha Good work on your stupid post. haha

[JasonPC360PS3Wii]

What are you an antisocial hermit that lives in his mothers basement? Welcome to N4G, there is a reason vets of this site call it News 4 Flamers, get used to it or get out because that is the fun of this site.

Edit above: ^^^

"What are you talking about man? You are at least 10 times more antisocial than me....You have way more posts than I do."

I only comment here while I'm at work, (I'm at work now) don't be mad because I have a good job and can do as I please. "Thats the american way" work hard and be as lazy as you can when the green rolls in.

BTW the comment was "sarcasm" if you can't tell the diff then spend some time around "people" or "N4G"

[creeping judas]

I guess last quarter when MS made their profit, must have been from all those returned consoles that you like to point out.

[KINGDRAMA]

microsoft is 6-8 BILLION inthe hole thanks to the almighty xbox brand.

all of a sudden a paltry 8th of a billion is charted as profitable and you guys are making it seem like its christs second coming. LOL

do your math :8,000000000.00-165000000.00 is hardly anything substantial /meritful, when u look at the TOTAL NET LOSS. IF microsofts deep pockets werent funding this highschool-project-gone-wrong, this system would end up just like the DREAMCAST with sega BELLY UP.

ALOT of you here spend too much time on this site, when you should be in math101/sexed101/common sense101 and GET A LIFE 101.

by all means PLEASE STOP EATING LEAD PAINT

im laughing in NYC at all of you CLOWNS

[JasonPC360PS3Wii]

Come talk sh!t when Sony has it's first + and actualy makes any money what so ever on software or hardware, untill that day comes eat these Xbox numers and like it. In order to start a car you need the key in and you turn, MS just started their car while Sony hasn't found the f**king key yet (hell they don't even know they have a garage). In order to start making a profit you need that +, so stop being a whiny scared little Sony droid because MS put up their first + and Sony is still in the - and looking to stay that way for a while. Know what that + means to those over at MS? it means :-) know what it means to investers $ and :-) Sucks to be Sony or a droid right now.

[The Chief of Mjolnir]

Wow, I woundered when you jackasses would come.

Microsoft is making more money than Sony. They can take a bill or two.

And if people on this site are such a no life, then wtf are you doing here, using the caps lock for attention?

//Wake me, when you need me.

[teto83]

MS needs to stay alive,we all need the xbox brand to stay afloat.Gamers and games had only become better thanks to the "console race",besides even though ms is not going to be in the lead at the end,it is pretty cool to have more options when it comes to games. Let` s all hope that the ps3 gets good numbers too.

[KINGDRAMA]

lets hope another QUALITY hardware maker and INNOVATOR joins the console race........like SAMSUNG.

NOW THAT WOULD BE AMAZING.

[THE_JUDGE]

You be a hell of alot closer if you'd had said APPLE!!! If any company could walk in and make noise, its Apple.

[zonetrooper5]

Samsung, are you serious? lol

[KINGDRAMA]

thats what sega and nintendo fanboys said in the early 90s: SOny? they dont stand a chance..............LOL.

RnC is the first of many titles the 360 CANT DO.ALmost 2 years and the 360 still rrods? LOL ure all in for a rude awakening.

This is just like the transformers thread,. U all go apeshit over 1 little pixel but FAIL MISERABLY TO LOOK AT THE BIGGER PICTURE. dont count ur eggs before they hatch. This console war has just begun.
I do predict you guys will get more desperate in attempts to put consoles on a pedestal. BUT AT THE END OF THE DAY A PC OWNS ALL THIS SH!T.

ure all insecure. PS3wiiPC for the war idiots.

@58.2 : am i here all day like most of u? NO.

check my posts genius

[pornflakes]

Well, its cool to see how often i see the "2bill RRoD" loss.
Is this all you can post guys!?

Yeah, they lost nearly 2 bill but they also gave a great service for.
XBOX 360 SOftware sells so great, no comparison to PS3 software.

Lets see how much copies of R&C will sell.

But give the RRoD its peace now.

[THE_JUDGE]

in the wrong order. It should read MS Xbox gaming divsion is profitable for now because you know that won't last forever.

[DaEnforcer]

Sure, what happened to the 2 bilion for repair costs? 2 - 0,165 = 1,835 billion loss doh Sony also makes profits if they not count the PS3 manufactoring costs haha and what with the 4 billion MS lost on Xbox? This makes their gaming division to a disastreous 5,835 billion loss. And btw how do we know this ain't just yet another lie?In case you forgot MS lied about their shipments and failure rates ;)

[DeZimatoR]

Wanna see if they are profitable in 2008 ;)

[Lex Luthor]

With their attach rate of course, it's sony you should be worried about.

[BISHOP-BRASIL]

Well, it's good to industry, but don't think it's that good signal for MS... This is the second quater where MS annouce a profit, the last one was when Halo 2 come, then sales has gone down again. I'm not saying MS will come down again, but MS need more than a quater to invete friends toa party... THIS is that so expected Halo effect, no more, no less...

[Ahmadinejad]

Hoooray, well done. fianlly.congrats, its well deserved. many thx for bioshock and halo 3