M$ is 5.4 billion in the hole on XBOX & 360!

[JoeSp]

Another article for your reading pleasure and of course comment:

http://ce.seekingalpha.com/article/32642

 

[riffjim4069]

Interesting read. I was showing my PS3s, and BD, to friends and family recently when I realized I was getting the same "blank stares" from them as when I showed them my HDTVs I have had since 2002...three-quarters of them just don't care. When given the choice, they will always select the analog TV because it is cheap, they have just recently made the conversion to DVD (and like it just fine), and they will likely select the least expensive game console for the kids.

The PS3 and XBox360 will bleed a lot more red ink before turning a profit. On a positive note, I don't think you'll see a PS4 or XBox720 anytime soon...these are powerful systems, and I don't think the stockholders and investors would be very happpy.

 

[duckydan]

The 5.4 billion isn't just from xbox or the 360 though that is their entire home entertainment division... that includes Zune, Media Center PC software, Xbox, Xbox 360, their internet tv box (msn tv), the aquisition of bungie software, rare software, and a few other investments. While Zune and msn tv were major flops the fact that Halo 3 will heavily promote 360 sales and is preordered with over a million copies 7 months before it is released is a good sign. It is hard to compare numbers with Sony or Nintendo because sony has its pockets in everything and Nintendo is solely focused on video game systems (with their 2 systems outselling everything in site... ds and wii)

 

[tonyp56]

I'd be willing to bet Sony is in the hole, and PS2 and PS3 are big reasons why. Any company that pushes the limits in technology, especially when it comes to game consoles, will lose money on them.

One thing about Nintendo, that perhaps Sony and Microsoft should take note of, Nintendo didn't go for the top of the line and greatest technology, they stuck with, what many were calling behind the times. Look how good they are doing. Goes to show, it don't always pay off, at least right away, to go for the greatest.

 

[JamesJ]

here the numbers for everyone


FY* Sony** Nintendo Microsoft
1998 974,000,000 629,000,000
1999 1,130,000,000 645,000,000
2000 730,000,000 421,000,000
2001 -409,000,000 726,000,000
2002 623,000,000 800,000,000 -750,000,000
2003 939,000,000 560,000,000 -1,191,000,000
2004 650,000,000 316,000,000 -1,215,000,000
2005 404,000,000 777,000,000 -485,000,000
2006 75,000,00 894,000,000 -1,262,000,000
2007 -602,000,000 457,000,000 -95,000,000
Totals 4,514,000,000 6,225,000,000 -4,998,000,000