Microsoft’s Entertainment & Devices Division: Now with Actual Profit!
By Chris on Saturday, July 19th, 2008 at 3:17 PM PST In 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)
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.
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.
That’s not a bad start. The Xbox division should break even in about 9 or 10 years from now at that rate.
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!
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.
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.
I dont understand why people use the companys profits as a E-peen compairing contest to see who’s console is better…
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.