Xbox Division Posts Loss of $1.9 Billion

Just when reduced manufacturing costs were beginning to turn Microsoft's Xbox division around, the weight of the warranty guarantee came crashing down on the company. The Xbox division of Microsoft Entertainment posted a loss of $1.89 billion for the fiscal year. Overall the Entertainment division did well, as sales of the Zune, consoles, and Xbox titles helped push revenues higher. Just the same, as Next Generation reports: "The fourth quarter in the EDD was down, with operating losses increasing 183 percent to $1.2 billion, again due to the billion-dollar-plus warranty charge. Revenues dropped 10 percent from a year ago to $1.16 billion due specifically to 'decreased Xbox 360 console sales.' Microsoft shipped 700,000 consoles during the quarter compared to 1.8 million for the same period a year prior."

Comments

Re:New consoles suck

[frakfrakfrak]

... Can I buy pot from you?

This is clearly a sign.

[typobox43]

Overall, Microsoft announced revenues of $13.37 billion for the quarter and $51.12 billion for the full year, up 13 percent and 15 percent, respectively.

Microsoft's trying to fit in with the "cool kids" now.

Re:Wait...

[ucblockhead]

Since Zunes are actually sold at a profit, even selling one "pushes revenues higher".

Re:New consoles suck

[LKM]

Actually, you can smoke pot with a pipe. Uhm... I mean... at least so I heard.