Xbox division post $1.9 billion loss

Summary:Microsoft continues to plough money into Xbox, but a profit is nowhere in sight.

Microsoft continues to plough money into Xbox, but a profit is nowhere in sight.

On Friday the Xbox division posted a staggering $1.9 billion loss.  This loss is partly down to the absorb $1.2 billion the company had to throw as upgrading the 360s warranty and maintenance program.  I'm betting that the disc scratching lawsuits will have a negative effect on profits over the coming months.

It's not all gloom though.  Microsoft has managed to dramatically cut the  manufacturing costs of the Xbox 360.

The more I look at how Microsoft markets the Xbox, the more convinced I become that not only won't it turn a profit any time soon, but that Microsoft isn't interested in making a profit - it's all about hammering Sony's market share.  however, I'm pretty sure that Microsoft didn't bank of the Wii being the runaway success that it's become, forcing the company to fight a games console war on two fronts.  This means that the hope of seeing a profit has been pushed further into the future.

Thoughts?

Topics: Microsoft

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.Adrian has authored/co-authored technic... Full Bio

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