They lost almost a billion dollars on the first one. Why bother with a second?
SourceThe original Surface RT didn't sell as well as Microsoft had hoped, but rumors have been swirling that a follow-up effort would be released soon. It's expected to bring a modest spec bump, and that may include an Nvidia Tegra 4 processor.
Microsoft hasn't confirmed that yet, but Nvidia CEO Jen-Hsun Huang apparently can't contain his excitement. In an interview with CNET, the boisterous boss revealed that Nvidia is "working really hard" on the new tablet and hopes "that it's going to be a big success."
There are also concerns about the Tegra 4 when it comes to a device's battery life, and that's something Microsoft no doubt wants to further optimize in the second-gen Surface. It stands to reason that part of what Huang and Nvidia are "working really hard" on is making sure that the Tegra 4 is perfectly tuned for use with Windows RT.
Alternate SourceDespite the Surface RT's miserable performance, and almost every other tablet maker jumping ship to Qualcomm, it appears that the Surface RT 2 - due out in October alongside Windows 8.1 - will still be powered by Nvidia's Tegra SoC. With Intel's Bay Trail due to hit the market at around the same time, and potentially offering more performance than the ARM-based Tegra 4, does the second-generation Surface RT really stand a chance?
So they can lose another billion?
Just because they lost on hardware, doesn't mean they didn't make money. Search how much they made on software for xbox. I'm sure it yielded them a profit over 3 billion.Originally Posted by 47 Knucklehead
So they can lose another billion?
Heck, just look at how much Microsoft has lost on XBox alone, and they are coming out with the THIRD version.
Report: Microsoft's Xbox division has lost nearly $3 billion in 10 years
I couldn't agree more.Originally Posted by Ghoxt
Microsoft doesn't get it.
Apple = Has Culture that certain people resonate with, hence loyal customers through thick and thin & Cool.
Harley Davidson = Has Culture that certain people resonate with, hence loyal customers through thick and thin & Cool.
Vera Wang ...same
Starbucks...same
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Microsoft = No culture, however I need their O/S to do something that I want to do, (Gaming / Unity3D / Cinema4D) also note: "O/S - get outta my way."
As long as Tablets like the Acer Iconia series are out there Microsoft will never win. My old Acrer W500 with Win8 on it runs perfectly!
Those numbers are in the entire entertainment division for MS. Technically speaking they also include some projects unrelated to Xbox, but they most certainly include software sales. They took a huge loss on the original Xbox, mainly to set up the 360's success. It's still not quite broken even though.