Microsoft's Entertainment & Devices Division: Now with Actual Profit!
Posted by Chris on Saturday, July 19th, 2008 at 3:17 pm under Game Companies, Game Consoles, Game Platforms, Games Industry, Microsoft, Microsoft
Microsoft announced this week that its Entertainment & Devices Division — which consists of business like the Xbox 360 and Zune — has (finally) turned a profit for the first time in its history. The profit comes depsite a less than superb fourth fiscal quarter, where the division lost $188 million.
Earlier this week, Microsoft reported operating profits of $426 million for the fiscal year. That’s a major turnaround from the $1.9 billion loss they suffered last year. That number is due in large part to the roughly $1 billion write-off made last year to support the Xbox 360’s extended warranty.
It’s all those damn Red Rings’ fault.
via VentureBeat / blurry image via Technorati (blurry or not, I think it’s worth it)
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July 19th, 2008 at 5:02 pm
Pardon my logic, but it *IS* Microsoft's fault for having shoddy manufacturing partners. However, my 360 works fine, so I'm not complaining too loudly.
July 19th, 2008 at 5:25 pm
I don't think Chris was aying that it wasn't Microsoft's fault, he was just explaining why there was such a huge loss last year. If he hadn't have mentioned the warranty extension I would have been completely lost as to how they created such a deficit last year.
July 19th, 2008 at 7:23 pm
That's not a bad start. The Xbox division should break even in about 9 or 10 years from now at that rate.
July 19th, 2008 at 8:08 pm
Considering the 3.3 billion USD punch in the gut Sony has taken from the PS3 so far, yeah, it does make MS actually look competent.
Neener!
July 20th, 2008 at 1:21 am
Good Job Microsoft. Now imagine if Microsoft didnt have to deal with the RROD issues. Woulda been heaps of Profit, but ah well.. I said imagine.
July 20th, 2008 at 8:56 pm
I knew I could trust Norbit to roll up in here and spray his negativity over everything.
The fact that MS Entertainment division has made a profit this early (only what, 7 1/2 years after the Xbox came out?) is amazing. Its incredibly hard for a company to break into a market and succeed, and nothing you can say Norbit can make MS's triumph any less spectacular.
July 20th, 2008 at 10:36 pm
I dont understand why people use the companys profits as a E-peen compairing contest to see who's console is better…
July 21st, 2008 at 2:25 am
This is the first YEAR in which they turned a profit. They've turned a profit in individual quarters before now. Considering the fact that it's Microsoft, they could lose $500 million every year for the Xbox division, and yet still turn a profit overall from Windows and Office.