Catch up on stories from the past week (and beyond) at the Slashdot story archive

 



Forgot your password?
typodupeerror
XBox (Games) The Almighty Buck

Xbox Arm of Microsoft Posts Profit 81

Posted by Zonk
from the rarer-things-have-happened dept.
GameDailyBiz is reporting that Microsoft has posted a rare profit for their games business. As you might imagine, the good news is courtesy of high game and console sales thanks to Halo 3. "[Entertainment Division] revenue increased primarily due to increased Xbox 360 console and game sales. Xbox and PC game revenue increased $895 million or 148% as a result of increased Xbox 360 console sales, video game sales led by Halo 3, and Xbox 360 accessory sales. We shipped 1.8 million Xbox 360 consoles in the current quarter as compared to 0.9 million consoles in the first quarter of fiscal year 2007. Halo 3 was launched in September 2007 and generated approximately $330 million of revenue during the quarter."
This discussion has been archived. No new comments can be posted.

Xbox Arm of Microsoft Posts Profit

Comments Filter:
  • Halo (Score:5, Insightful)

    by king-manic (409855) on Friday October 26, 2007 @03:55PM (#21134097)
    Every Quarter Halo is released is profitable for that quarter. Still not profitable that year or over all yet. Maybe in 2008.
    • Re:Halo (Score:4, Funny)

      by Grandiloquence (1180099) on Friday October 26, 2007 @04:06PM (#21134253)
      Microsoft logic dictates that a new Halo will henceforth be released EVERY quarter! Also, the next Halo will have Master Chief accompanied by his newest companion, Clippy. "It looks like you're trying to kill an Elite! Would you like help using the plasma rifle?"
    • by iluvcapra (782887)

      I can't think of a better reason to never get the movie off the ground, it'll mean the end of the phenomenon. Just keep talking about it, like it's in the works.

      • by aichpvee (631243)
        The end of the phenomenon of endless fanboyism over a mediocre game? Fuck, if a movie is what it takes get that shit out tomorrow!
      • by elrous0 (869638) *
        Four words of advice, Bill: Uwe Boll to direct!
    • I think it's interesting that they touted higher console sales. Aren't they still losing money on each console which, in turn, would mean it was software sales were able to cover up the hardware losses and make the quarter profitable?
      • I think it's interesting that they touted higher console sales. Aren't they still losing money on each console which, in turn, would mean it was software sales were able to cover up the hardware losses and make the quarter profitable?

        They were making money on each unit but the RROD warranty extension and high probability of unit failure wiped that out. They may make money next year with the advent of the new 65nm chips. Maybe, maybe not since the 65nm aren't out yet and we don't know if they have issues or not.

        • Re: (Score:1, Informative)

          by Anonymous Coward

          since the 65nm aren't out yet
          Xboxes with 65nm cpus have been shipping for about 2 months now. Certain lots manufactured after August 24, if I remember correctly. Go google it.
        • Re: (Score:2, Informative)

          by kurokaze (221063)
          the RROD warranty was accounted for in the last quarter. It has no basis on the results for this quarter.

          I'm not going to speculate as to whether or not the console itself is making money, since I don't have a clue (and neither does anyone else here for that matter)
          • the RROD warranty was accounted for in the last quarter. It has no basis on the results for this quarter.

            I'm not going to speculate as to whether or not the console itself is making money, since I don't have a clue (and neither does anyone else here for that matter)
            MS said per box they were. The RROD extension means this year will not be profitable yet.
      • by Amouth (879122)
        i think at this point only the PS3 is loseing money per consol...

        i can't remember exactly where i read it but the number of 18$ is poping up in my head as what MS now makes per core unit...
      • by Seumas (6865)
        Since half the consoles have to be replaced multiple times, they're definitely losing money on each console.

        Another lesson in measure-twice; cut once. Imagine how much better they'd be doing financially, if they hadn't screwed up on the initial hardware design?

        Then again, they also have morons like myself who bought two 360s, so that they'd always have one to play even when the other is "in the shop".
        • by kurokaze (221063)
          Do you know this for a fact? that they are still losing money on each console as of this quarter? If so, please provide linkage.

          Or perhaps you're just talking out of your ass, which I suspect is the case.
          • Re: (Score:2, Informative)

            by rtb61 (674572)
            The idea is to get as many consoles out there as possible in order for other people to sell games for which M$ charge a licence fee. Loading up the consoles with a profit margin just reduces sales, so yes they are sold at cost or at a loss, in order to promote sales of the units.

            The only slippery point of the claimed profit margin is whether it is just for that quarters operating costs or does it include all the prior losses ie. it looks good for fluffing up the share price but does it really reflect real

            • by tilandal (1004811)
              Its funny how the only console maker to consistently make money is the one who doesn't do that. Nintendo just revised earnings to $3.7 billion for this year.
              • by rtb61 (674572)
                The Nintendo console is different. It is a console that was carefully targeted at the family market, only had the hardware required to achieve that role and combined an effective viral marketing strategy to achieve sales. So M$ was clumsy and stupid basically reflected Ballmer's true lack business abilities and failed, all they really have done is damage their own PC Games business and of course Sony's high end game console (Sony had a chance at a work around but greed and stupidity ended that).

                So where w

        • "Since half the consoles have to be replaced multiple times, they're definitely losing money on each console.

          Another lesson in measure-twice; cut once. Imagine how much better they'd be doing financially, if they hadn't screwed up on the initial hardware design?

          Then again, they also have morons like myself who bought two 360s, so that they'd always have one to play even when the other is "in the shop"."

          I had to paste your whole comment because I have to respond to it all where I initially was going to only
        • by aichpvee (631243)
          If they'd built it right it would have cost them a lot more money. If they are actually able to manufacture them below the retail cost it is only because they have such shoddy construction.
      • by Toonol (1057698)
        Well, presumably more hardware sales leads to more software sales in the future, ultimately resulting in profit. Otherwise, they'd be best advised to close up shop and get out of the market right now.
  • by ubikkibu (544498) on Friday October 26, 2007 @04:38PM (#21134565)
    "For the remainder of fiscal year 2008, we expect [EDD] revenue to increase due to the increased sales of Xbox 360 consoles and related games, accessories, and services, and sales of Zune products,"

    Now I don't believe anything said in this story.
  • I recall the first one (in combination with rolling out Live) sunk about $4 billion.
    • by XaXXon (202882)
      obviously not. When it's news that they had a profitable QUARTER and they've been around for many years. No. They're not profitable overall.
    • Yes, but unlike most American companies, Microsoft is more than capable, and willing, to take a very long view. They're refreshingly willing to take an upfront loss to reap long term profits.

      Besides, they knew full well that the Xbox would never make money. For example, they didn't own the various chipsets, so they couldn't do the usual console cycle of re-engineering, to allow for cost reductions. They addressed many of these problems for the 360.

      • by tbannist (230135)
        Not exactly. Because of the windows and office monopolies Microsoft doesn't have to make a profit on anything else and generally speaking they don't. What they do is create a vaste wasteland of computer related businesses that undercut their competition and bleed them to death to scare people away from software businesses.

        Microsoft takes a loss on 360s because they want to drive Sony and Nintendo out of the console business. That's their long term plan: Establish a monopoly then raise prices. As long as
  • by sneakyimp (1161443) on Friday October 26, 2007 @06:32PM (#21135433)
    Given the popularity of WoW and Counterstrike type games, my thinking is that on-line games are the killer app. Human players are *so much more interesting* than AI. Halo just offers a taste of that. I believe Microsoft is well-positioned in this regard relative to Nintendo and Sony due to XBox Live. PS3 is pretty much tanking all around as far as I can tell. Also, isn't Grand Theft Auto one of the most serious console-movers in history? According to Wikipedia, M$ is a step ahead of sony there and there is not GTA planned for the Wii is there? "It has been confirmed that episodic content will be released on the Xbox 360 exclusively. Microsoft officially announced a strategic alliance with Rockstar Games over the rights to episodic content through their Xbox Live service at their X06 event. An announcement regarding the release of episodic content for the PS3, however, is still expected, whilst fans speculate that each console will receive its own exclusive episodic content via their respective download services (Xbox Live for the Xbox 360 and PlayStation Network for the PlayStation 3)."
    • Re: (Score:2, Funny)

      Human players are *so much more interesting* than AI. Halo just offers a taste of that.
      So they just invent an AI that insults your sexuality and whines constantly. Problem solved.
    • by KDR_11k (778916)
      I have a feeling that sooner or later Rockstar will throw a half-assed port of a PS2 GTA3 game on the Wii (probably with analog stick aiming) and then act surprised as it doesn't sell.
  • XBox marketshare never really took off. The PS2 just killed the competition.. Now we've got three systems that do pretty well:Wee, XBox360 and PS3. Looks like Microsoft is doing something right for a change.

    Here's to hoping they f*ck up ASAP!

: is not an identifier

Working...