In an interview with eWeek, Robbie Bach, president of Microsoft's Entertainment and Devices division, disclosed that he believes the Xbox 360 will be profitable by next year. We reported recently that the EDD lost $315 million last quarter, down from $415 million the same time the year before. If losses continue to shrink at a similar rate every quarter, it's reasonable to assume that Bach is correct in his assessment. Bach notes that the Xbox 360 has multiple avenues to generate money. Among them are of course game sales, but Microsoft also makes money from selling ad space on Xbox Live (as well as collecting subscription fees) and selling peripherals. According to Bach, Microsoft is "humming pretty well in the business."Also discussed in the interview is the potential of the Zune and Microsoft's plans for XNA. Hit the "read" link to check it out.
Reader Comments (Page 1 of 1)
5-04-2007 @ 8:30PM
John said...
potential of the zune... lol
apple already won that market with the iPod. We sell zunes at where I work, and yeah, they are definately not as good as an iPod.
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5-04-2007 @ 9:12PM
Mike said...
It's probably profitable right now...solely from how much they price Marketplace content. Boom Boom Rocket's price made me go boom boom in my pants.
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5-04-2007 @ 11:21PM
Toph said...
No high powered console sees revenue back from system sales for at least a year or more.
Yeah, the Wii has seen returns back for awhile, but..I said 'high powered'.. :)
I have a Wii..I'm not bashing it or anything.
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5-05-2007 @ 12:49PM
John said...
the 360 should be profitable by 2008
after all it costs less to make than the ps3, and after buying one u gotta buy recharge packs, the wifi dongle, pay for xbox live and buy an HDDVD drive (well i got all these and got good use out of them) and it ends up costing more than a ps3
Microsoft are gonna be making profit on all of those extras and theyr nearly making a profit on the unit itself
sony are selling a console with all of these as default and are selling at a loss
MS have it sussed lol
:)
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5-05-2007 @ 2:57PM
massive_98 said...
They certainly have alot of money pouring in through online. Its fucking expensive.
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5-05-2007 @ 4:31PM
Dragod said...
John,
I think your math is a bit off... the Premium 360 is $400, WiFi $100, Play 'n Charge kit $15 and Xbox Live for $50, that's less than a PS3, about $565. You don't need to buy a new HDD it comes with one, and if you want to get the 120GB drive that's only an extra $80 (Elite or Core + 120gb drive).
Not to mention Xbox Live is a lot better than Sony's online, and you get a headset for online. Plus, I like not being tied in to having the WiFi, I don't use mine and I like not having to pay the extra $100 unless I want to.
Personally, I think the Xbox 360 wins.
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5-06-2007 @ 4:16PM
Triforceowner said...
@ Dragod
John said HDDVD not HDD ;)
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