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360 is making some financial progress

Today, Microsoft released its second quarter financial details. Overall they didn't quite meet their projected numbers due to the whole Vista and Office delay, but they were sure to point out that the Xbox 360 division was performing admirably. The entertainment and devices division, which houses the Xbox 360, saw a 76% jump in revenue. That makes the division 25% of Microsoft's total revenue, up from 15% last year. But everything isn't cake and roses, because that same division has seen an increasing operating loss of $289 million. We think that the Zune (which is under the same division) may have aided in increasing the operating loss, so it isn't all the 360's fault. Oh well ... the 360 is becoming cheaper and cheaper to produce, so hopefully we'll see our Xbox 360 division prosper next quarter. Show them the money!

[Thanks, Jonah]

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1. Its probably from all those ad's they broadcasted.

Posted at 9:58PM on Jan 25th 2007 by un1qu3 n3wy0rk

2. Yay?

Posted at 10:39PM on Jan 25th 2007 by Arno

3. Not so fast....

"...But the company also issued a surprise reduction in its sales forecast, citing a build-up of consoles in distribution channels.

"Microsoft, which had previously spoken of selling 13 million to 15 million of the game consoles by the close of the fiscal year ending in June, now expects to sell about 12 million in that period. The company hinted it will take steps to reduce spending associated with the Xbox 360, an unprofitable business at the moment"

Spending less money on the XBox 360 is not good news.

http://online.wsj.com/article/SB116958810021785376.html?mod=rss_whats_news_us

Posted at 12:32PM on Jan 26th 2007 by Kevin Christmas

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