It's finally happened - The Xbox division has turned a profit

[diskoboy]

After 6 years of 400+ million dollar losses. The box is finally making MS some money!

http://www.joystiq.com/2008/01/24/the-xbox-turns-a-profit/

[ProgrammingAce]

The xbox1 was never supposed to make a profit, hence the 4 year life cycle. If you look at the SDK from the Alpha development, the xbox1 was always meant to be a loss leader. Obviously the plan paid out in spades.

[Leo_A]

The overall program isn't profitable, just the quarter was. The same thing happened with the original Xbox when Halo 2 was released actually, so this is nothing new. Not to mention that the July-September 2007 quarter was profitable as well. This is the third quarterly period for them to be in the black.

[ProgrammingAce]

The architecture of the Xbox game system is based on leading-edge computerPC technology. The architecture and performance of the Xbox game system shawill remain constant throughout the life span of the product, which is estimated at approximately four4 years. Over this span of time, PC computer technology will continue to advance, while average PC computer prices will fall at a fairly low rate. The Xbox game system, however, wishall maintain consistent performance year over after year, while decreasing the cost of manufacture and the retail price of the product.
The long-term requirements of the design are as follows:
Fast time to market of initial design
Rock-solid reliability
Best-in-class performance compared to current personal computerPC designs
Significantly better performance relative to contemporary game consoles
Path to achieve cost reduction of 30 percent annually
Uniform performance over time, independent of implementation

[The 1 2 P]

After 6 years of 400+ million dollar losses. The box is finally making MS some money!

http://www.joystiq.com/2008/01/24/the-xbox-turns-a-profit/

Actually, I heard they lost around 4 billion on their combined video game business over the last 6 years. But I guess that no longer matters because they have now made a profit for two finacial quarters in a row. Goooooooooooooooo Microsoft:cheers:

[The 1 2 P]

Also, I heard they made a profit when Halo 2 came out.

[chrisbid]

i cant see them continuing to throw money away on an xbox 720, unless they let somebody else manufacture and sell the hardware.

[The 1 2 P]

i cant see them continuing to throw money away on an xbox 720, unless they let somebody else manufacture and sell the hardware.

If they have 42 billion to offer to buy Yahoo, then they have money to throw away on anything else they want, including the next Xbox.