Xbox Sees Earnings Lag, Stronger Sales

Posted by simoniker on Friday July 23, 2004 @04:09AM from the not-terrible dept.

Thanks to GameSpot for its article discussing the Xbox-related financial results from Microsoft's Q4/annual 2004 earnings, released yesterday. The article notes: "The Home and Entertainment Group, which includes the Xbox division, had a $339 million operating loss for the quarter on revenue of $499 million and anemic revenue growth of 3 percent - the lowest growth rate of any of Microsoft's seven business segments. Though Microsoft doesn't break out separate results for the Xbox, it's pretty clear that the console business is still a strategic investment, not a profit center." However, it's not all bad news, since "Xbox shipments increased 27 percent over the same period a year ago. Microsoft reports 15.5 million units sold worldwide through the end of June: 1.5 million in Asia Pacific, 3.9 million in Europe, and 10.1 million in North America. The company also quoted industry research group NPD's claim that Xbox has a 33 percent market share in the US, with 50 percent growth in software sales over Q4 last year." Does this bode well for the apparent 2005 launch of Xbox 2?

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Re:No it does not bode well by hoferbr · 2004-07-23 06:48 · Score: 0, Flamebait

"The Xbox has not failed".
No? So what does the /. news affirm? That the Xbox is a success?

The last week, the Xbox has sold 272 units in Japan. That is even below PSOne, with 276. If that is not a failure, then i don't know what it is. Someone may say that the Japan market is not important, but majors softhouses are there.