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.