Microsoft: Xbox profits may take at least two more years
- August 20, 2007 09:01 AM PST
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Microsoft COO Kevin Turner admitted last week that it may take at least two to three more years before the Xbox 360 turns a profit. Despite the recent financial and hardware troubles of the console, the Microsoft executive remained confident and committed to gaming.
"We are a software company, so we don't have decades of experience in the hardware business," Turner said in an interview with eWeek. "We are learning as we go in that space, and we still have a lot to learn, so we don't have it completely figured out... The [$1 billion in warranty losses] is a bad thing, but affecting customers is a worse thing."
Turner remained upbeat and patient, however, given the growing adoption of Xbox 360, not to mention the massive success of Microsoft Windows.
"Now we are going to have to work hard figuring out how to make money [on Xbox]. CEO Steve Ballmer tells me that Windows took eight or nine years to make any money, which no one talks about today. But he reminds me of that all the time. Today everybody just believes it made money from the start, but that was not the case."
If Windows in fact took eight to nine years before seeing black, you can bet Microsoft will stay in the game for a very long time despite all their recent financial woes. The company's deep pockets are sure to be appreciated by gamers. Thanks, Microsoft!
