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Xbox 360 drags down Microsoft profits

post #1 of 13
Thread Starter 
I had a feeling this would happen.

Quote:
SOFTWARE COLOSSUS Microsoft made net profits of $2.98 billion on $10.9 billion revenues for its financial quarter ending March 31st 2006.
But steep costs related to the introduction of its Xbox 360 affected its results, and it cannot necessarily console itself that segment is getting better.

It spent a princeling's ransom on finding an extra manufacturer and paid more than it should have done for the bits and pieces inside the Xbox 360. The firm was forced to pump up the volumes of the Xbox 360 after generating demand that it found hard to supply at launch.

Other bits of the Vole's business went swimmingly, with sales of Windows and Office putting a smile on the firm's face. But Google continued to predate Microsoft's MSN division, something that won't stop the Vole from continuing to fight the good fight. It will plunge more money into MSN
Source:http://www.theinquirer.net/?article=31331
post #2 of 13
of course they are gonna loose money.. i dont think any console makes money hell thats why sega dropped out they saw the profit margins and said screw this im goin home.. and started making software only
    
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post #3 of 13
lol ms got pwned.
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post #4 of 13
Thread Starter 
Quote:
Originally Posted by Trippen Out
of course they are gonna loose money.. i dont think any console makes money hell thats why sega dropped out they saw the profit margins and said screw this im goin home.. and started making software only
Well its just well known that companies lose out alot with consoles or atleast abit..cant be avoided other comanies do better than others obviously.
post #5 of 13
Quote:
Originally Posted by ENTERPRISE1701
Well its just well known that companies lose out alot with consoles or atleast abit..cant be avoided other comanies do better than others obviously.
yep i cant wait to see what sony looses when they drop the ps3
    
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post #6 of 13
*****...ps3 is gonna blow...i want my wii =(.
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post #7 of 13
Quote:
Originally Posted by metalkobra
*****...ps3 is gonna blow...i want my wii =(.
how about wii in a cup..
    
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post #8 of 13
Lets face it though its microsoft, they could give it away for free and still be clean sailing at the top of the stock market, they did make a boo boo with the 360 but they probably knew they would lose out, it aint just about the money, its the same with EA they need a piece of every pie in order to capitalise on their branding, when Sony playstation was released The Sony Vaio Pc's got launched to the top shelf of computer sales through association of brand. Most people/kids start off on consoles so when they advance PC's go with what they know therefore microsoft are securing a percentage of the future market..........................My thoughts anyway
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post #9 of 13
how about wii on a wii?
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post #10 of 13
Typically it take 2 years before companies see any profits on a console, mainly due to R&D costs and technology costs. In two years the cost to make a 360 will be dirt cheap and the same might be true for the PS3, but MS isn't using brand spanking new technology in nearly every aspect of the console like Sony is. Costs are high but they'll be getting more money if people keep buying the 360.....which they are
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