Xbox Arm of Microsoft Posts Profit

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."

Re:Now what?

[Anonymous Coward]

Mass Effect.

Re:Now what?

[Pojut]

Mass Effect...Fable 2...The next Ninja Gaiden game...Marvel Universe Online...Splinter Cell: Conviction...Too Human...Warhammer: Battle March...

There are plenty more exclusives on the way for people to get excited about. Mass Effect, Fable 2, and Ninja Gaiden 2 will likely sell like hotcakes. Splinter Cell: Conviction looks to be absolutely amazing. Assassin's Creed, while not exclusive, will likely help shift some more units as well.

Re:Halo

[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:Halo

[kurokaze]

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)

Re:Halo

[rtb61]

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 reality of the earlier billion dollar loses. Your are never in profit until you have accounted for all the losses.