Xbox division posts $1.9B loss over last year
- July 20, 2007 09:14 AM PST
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Microsoft announced on Friday that Xbox 360 losses for the fiscal year ending June 30 total $1.9 billion due largely to recent charges in its extended warranty plan to cover faulty consoles.
Xbox 360 still bleeding monies
The company said reduced manufacturing costs help offset losses, and that revenue for the year was up 28% due to increased sales of hardware and software.
Xbox 360 shipments dropped to 700,000 units, down from 1.8 million during the same period last year. Total division revenues during the fourth quarter were down 10% due to decreased 360 sales.
Microsoft remained confident, however, saying that the company would turn an operating profit on the Xbox division during 2008.
THE VERDICT by Blake Snow
Geez, Microsoft just can't seem catch a break in its Xbox division (speaking financially). The company's deep pockets suggest that Xbox will be fine for years to come, but every man has his breaking point.
Geez, Microsoft just can't seem catch a break in its Xbox division (speaking financially). The company's deep pockets suggest that Xbox will be fine for years to come, but every man has his breaking point.
