Microsoft Could See Upside from Xbox Sales-Analyst

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Thanks DJ^TuRKiYe for back paging this bit.

Microsoft Corp. should see its current quarter results lifted by the strong holiday season performance of its Xbox video game console and related game software, an analyst said on Wednesday. Sanford C. Bernstein analyst Charles Di Bona, in a research note, said Microsoft stood to benefit from higher sales of more profitable game software even as discounts cut into its revenues from sales of the money-losing Xbox console itself.

"Preliminary reports from retailers indicate that game software is moving extremely well this holiday season as discount-driven console sales through the fall have boosted the installed base," Di Bona said.

Microsoft recently introduced a bundle that includes two games with the Xbox for the same $199 price that the console had sold for on its own previously, a move characterized by many analysts as an effective price cut.

That bundle, analysts have said, has improved overall hardware sales for Microsoft, though the company actually loses money on each Xbox sold -- up to $150 a unit, by some estimates.

The company said last week it would pour more money into its games business to make it successful rather than cutting its losses and pulling out. The company's home entertainment division, which includes the Xbox, lost $177 million in the last quarter.

News source: Reuters

#1 Spyder on 12 Dec 2002 - 14:54

[quote]The company's home entertainment division, which includes the Xbox, lost $177 million in the last quarter.[/quote] ouch .. if it wasn't for MS's seemingly limitless amount of money, i doubt there'd be life in that devision for much longer

(1 reply) #2 o_87 on 12 Dec 2002 - 15:58

It is true, alot of people I know are getting an xbox because of the bundle. I think it would be a wise decision for Microsoft to keep the bundle, and perhaps even keep on changing the two games that coem with the bundle.

#2.1 DJ^TuRKiYe on 13 Dec 2002 - 05:27

[neoquote=#2.0 by o_87]It is true, alot of people I know are getting an xbox because of the bundle. I think it would be a wise decision for Microsoft to keep the bundle, and perhaps even keep on changing the two games that coem with the bundle.[/neoquote] Changing the games that comes with the bundle would be a good idea. And The people in Australia get three games instead of two

(3 replies) #3 iraklis2000 on 12 Dec 2002 - 16:24

Merry X-mas MSFT! You earned every penny this year. Some of the Best products got out to the rest of the world this year. Windows XP, XBOX, XBOX LIVE. Keep them coming.

#3.1 o_87 on 12 Dec 2002 - 16:48

[neoquote=#3.0 by iraklis2000]Merry X-mas MSFT! You earned every penny this year. Some of the Best products got out to the rest of the world this year. Windows XP, XBOX, XBOX LIVE. Keep them coming.[/neoquote] Windows XP this year? What have you been smoking?

#3.2 iraklis2000 on 12 Dec 2002 - 17:01

Yes, I know, both XP and XBOX were released last year, but the fruits of their labor have not been recognized until recently. With hardware manufacturers finally having proper support(drivers, etc), software releasing true XP optimized software and game developers catching on to the trends and developing EXCELLENT games for the XBOX and XBOX Live.

#3.3 o_87 on 12 Dec 2002 - 17:10

[neoquote=#3.2 by iraklis2000]Yes, I know, both XP and XBOX were released last year, but the fruits of their labor have not been recognized until recently. With hardware manufacturers finally having proper support(drivers, etc), software releasing true XP optimized software and game developers catching on to the trends and developing EXCELLENT games for the XBOX and XBOX Live.[/neoquote] Oh sh!t, heh I did not realise that XP was released last year..

(1 reply) #4 Osiris on 13 Dec 2002 - 00:20

Yep takes a transnational corporation like MS, or IBM, or Mars, or the other top 20 transnational corporations too loose 177m, and turn around and say well pour more money into it to make it profitable. Ah well XBOX was always gonna be a longterm plan, they said before it was released it would initially not make money. Considering last year MS made $7228 million dollars(gross or net I dont remember) I dont think 177m loss from that is huge devastation for them.

#4.1 Atom on 13 Dec 2002 - 03:28

[neoquote=#4.0 by Osiris]Considering last year MS made $7228 million dollars(gross or net I dont remember) I dont think 177m loss from that is huge devastation for them.[/neoquote] bill had to go to therapy sessions after this news

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