Xbox Division Down $4 Billion

Forbes, in a long article about Microsoft's monetary situation, drops the news that the Xbox division is $4 Billion in the hole over the last four years. From commentary on C|Net: "That's a lot of money, even for Microsoft, which Forbes also says has a war chest of $40 billion in cash. Just before Thanksgiving, Microsoft will launch its next-generation console, the Xbox 360. The early word is that the 360 will also start its life as a loss leader, though Redmond insists the new box will soon be a moneymaker. Either way, it's got a long way to go to get back to even, and though Microsoft is a rich company, it surely doesn't want the Xbox 360 known as an albatross around its dividend-paying neck."

Comments

Microsoft vs. Nintendo

[popo]

Now might be a good time to point out the frequently bashed Nintendo, smallest of the 3 console makers -- is profitable.

Personally (I own both a GameCube and an Xbox) I always thought there was no contest in graphics quality between the GC and the Xbox. The antialiasing on the GC *destroys* the Xbox.

Hardware geeks constantly tell me that Xbox has fantastic antialiasing capabilities, but my answer is always: Show me.

Take SSX on the the GC vs. the Xbox: the Xbox version is full of jaggies. The GC version is smooooth.

Anyway ... I ramble.

The point: GC was a fantastic console, wound up 3rd in overall sales -- but from a financial perspective was a clear winner.

Re:Microsoft vs. Nintendo

[popo]

Ok... before we set about the task of removing your Xbox from your ass, let's address your very-alarmed, very-panicky comment.

What was "stupid"?

A comparison of profitability: One is profitable (Nintendo Gamecube). One is not (Xbox)

A comparison of capability: One has the best anti-aliasing I've seen (Nintendo Gamecube). One has poor anti-aliasing (Xbox)

Step back for a second. Go outside. Have a smoke. Settle down.

I wasn't painting broad strokes about the strategic initiatives and ultimate market domination by either company. You're the one connecting dots here. I wasn't even making an "analysis" as you say. Simply pointing out 1 fact, and 1 observation from a consumer (that's me) perspective.

Chill Joe, Chill.

Re:Contrasting

[jclast]

Nintendo makes money in ALL divisions.

Re:Contrasting

[bpd1069]

Microsoft makes money EVERYWHERE BUT console division

Sony loses money EVERYWHERE BUT console division

From the last I heard MS loses money in everything but Office and Windows.