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Microsoft Still Losing Money on Xbox
Despite posting a 22% increase in revenue for its "Home & Entertainment" division Microsoft continues to take an operating loss amounting to $179 million, bringing the yearly loss to $391 million. This is down from a loss of $1.2 billion last year, so not too bad, but the Xbox remains a big money loser for Microsoft.
Sure I love the Xbox, and I'm looking forward to the Xbox 360, but you have to wonder just how longer Microsoft is going to keep making a system which is costing them than the GNP of ... Liechtenstein. Okay, maybe it's not costing them that much money. I mean, they just $3.7 billion in the last 90 days. So what's a few billion for a gaming system? And everyone is having a good time?
So thanks Bill for spending all that hard earned money on letting us play Xbox games! I'm looking forward to the Xbox 360, and whatever comes after that. I hope you continue to lose money for a long long time...
I always find that ammusing. You have to think they will start losing even more when the 360 goes into full production. I personally don't think the future is looking to good for Microsoft. They are slowly loosing market share in a lot of areas. OS, Internet Browser, etc... I don't think they are going anywhear, but their total dominance of computers is over.
Posted by Zaphod at July 22, 2005 3:36 PMMeh... Just because you can do it does not mean you should....
Also I think the Gnomes stole some words from your most recent announcement, Steve.
Posted by PatMan33 at July 22, 2005 3:38 PMeh, no real big surprise to me.
Posted by The Spartan at July 22, 2005 4:43 PMActually Patman, it is good they are spending money. You can't just save billions of dollars if you are not going to spend it on anything. It's not good for the economy.
Posted by The Spartan at July 22, 2005 4:46 PMI see what you mean... but since when was it a good idea to keep selling a product that is costing you money every year.
I mean, at this point they arent doing it for the money obviously. So what reason do they have to continue on this course?
Posted by PatMan33 at July 22, 2005 6:01 PMPurely for the fact that they want to sell more xbox's than playstation's.
If they have all that money I guess they have to spend it on something
Well I didnt want that to be the answer... because that is really really stupid...
But then again, I am a Nintendo fanboy for a reason!
:P
From what i have heard about the history of the xbox - microsoft has always intended to lose money on the xbox and at least half of the xbox2 (now called 360) ... this is about getting a good market presence ... very long term from the start
Posted by Jon D at July 22, 2005 8:44 PMI have no interest in the Xbox or 360 because Sony and Nintendo supply all my gaming needs. The few games that are exclusive to Xbox don't make the system worth buying. Despite this, I too hope Microsoft continue this folly - it helps to keep Sony competitive.
Posted by Laurence at July 23, 2005 6:21 AMI like Microsoft, and I think all the Microsoft haters are being ridiculas. I like the X-Box, and I think people who do not buy one just because its made by Microsoft are ridiculas.
People should hate EA more.
Posted by rayofash at August 9, 2005 12:04 AMActually, Microsoft knew they were going to lose money on the X-Box, and it's next two(or three) generations. They set up a ten-year plan when the system first came out. It pretty much says that they're gonna lose money for ten years, after which time they expect to have large enough of a user base to be making money.
As I understand it, this isn't unusual for new products/companies. But what do I know, nu? I'm just some random guy on the internet.
Posted by Brad at August 16, 2005 1:20 PMI hate to break it to everyone, but take a look at how much Sony has lost over the past few years on the PS2. Correct me if Im wrong, but last year the PS2 suffered a sales drop of 90% which is why they brought out the utterly pointless PS2.2 that wasnt able to have a HardDrive.
Microsoft is still safe, if anything Sony has lost more money over the PS2's many year run then X-Box has at any point in time. And Nintendo? Well, lets just pray they get a clue sometime in the near future, for all our Nintendo-fanatics sakes.
Posted by MarikLaw at November 1, 2005 9:54 PMSony lost more money over the ps2's many year run? what are you talking about sony mankes an assload of money off the ps2 if you haven't heard the ps2 has sold one console for ever person in the united states. I think you're a Microsoft-fanatic if you can't allow yourself to see the truth that microsoft is no real threat to sony's big ass monopoly of the market
Posted by Alphie at November 16, 2005 11:22 PM