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Xbox loses $380 million for Microsoft

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Xbox loses $380 million for Microsoft

It's amazing how well Xbox can do over the holidays yet still lose so much money. Still, such losses are only a ding in the Microsoft Corporation. Nintendo may have had more modest sales, but at least they're not losing hundreds of millions of dollars.

its a simple equation
a = number of xbox sold
b = how much they lose per xbox
c = amount $ loss

ab = c

as a goes up so does c.

The question is will Microsoft ever make a profit off of XBox?

I don't think so. It clear they are giving away Xboxes so they have a fan base for XBox2.

That's spurious math, Ming.

Actually, while Microsoft is losing money on the Xbox, that's not where all of this loss is coming from.  It's Microsoft's Home Entertainment group that is losing the money, which includes things like the former Ultimate TV group.  There's also the persistent rumor that Microsoft's Home Entertainment group budget is being used to subsidize a major Japanese development house, and keep them afloat.  Don't know who it might be (though the rumor is Sega), but that would explain why the loss keeps getting bigger when the Xbox must be getting cheaper to manufacture.

(The rumor of Microsoft giving money to Sega would certainly explain two of Sega's titles being packed in ...)

Sega and Microsoft have always been close, so it would make sense. Segasoft worked directly with Microsoft employees with some of their PC titles, Dreamcast could use WinCE technology, and as a result, every Dreamcast contained the Windows logo on it. However, it is also odd in that i've always seen Sega as the Apple of the videogame industry. Innovative, but crushed by competitor's dirty tactics, bad luck and bad business decisions. Mind you, Microsoft devoured a portion of Apple too.

Well, Steve Jobs doesn't seem to be complaining. He does own Pixar after all (his office is there - check the Monster's Inc DVD: Pixar tour!), and they are brining in loads of cash.

Have Microsoft announced anything in terms of any new console? Sony have, and Nintendo have, so have Microsoft?


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