Microsoft Doubles Loss in Xbox Division

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Things are not going too well in Microsoft's Home and Entertainment Division.

Redmond, Washington-based Microsoft said that its Home and Entertainment division lost $190 million before taxes, write-offs and other charges in its fiscal third quarter ended March 31, compared with a loss of $97 million a year earlier.

The division's quarterly revenue fell to $493 million from $943 million a year earlier.

The loss, which is mainly due to the ongoing costs of Microsoft's one-and-a-half year effort to break into the video game business, was detailed on the same day that the software giant was preparing to announce new features and games for its Xbox machine.

News source: Yahoo

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(8 replies) #1 perochan on 13 May 2003 - 16:46

geez, i wonder how much they gonna spend and loss for xbox 2...

console war isnt gonna favor m$ this time and m$ cant have everything.

#1.1 macrosslover on 13 May 2003 - 17:11

[neoquote=#1.0 by perochan]geez, i wonder how much they gonna spend and loss for xbox 2...

[/neoquote] they are doing well in sales, that's why they are losing money. so how do you figure it isn't favoring them??? they are doing better than most people expected they would. they are going to spend however much it takes get used to it, MS isn't going anywhere.

#1.2 werejag on 14 May 2003 - 07:47

hello maybe ur not reading these figures right they are losing money losts of it and sales are sh!t

#1.3 macrosslover on 14 May 2003 - 08:15

[neoquote=#1.2 by werejag]hello maybe ur not reading these figures right they are losing money losts of it and sales are sh!t[/neoquote] they are losing money because sales are not sh!t. while they maybe slightly below expectations, the sales are doing very good compared to the competition. where do you think they are losing money from?? give me your guess?? how exactly??? everybody knows that the Xbox costs more to make than they sell it for. now let's think about this. if nobody buys it then you lose less money. now if people buy something*8 million and you lose $100 on each one sold, you LOSE money, alot of money. the more you sell the more you lose.

#1.4 werejag on 14 May 2003 - 16:23

forgive me little fanboy. but they are 3rd on sales for consoles and 3rd on sales for games and many compnaies are not going to make games for xbox. so where do u come up with your numbers? seems they lost it all ready

#1.5 silly_walk on 14 May 2003 - 17:53

[neoquote=#1.3 by macrosslover]they are losing money because sales are not sh!t.[/neoquote] Companies don't sell products to lose money. Losing money is never a long term goal, and that seems like where MS will be for a while with the Xbox.

#1.6 macrosslover on 14 May 2003 - 18:44

[neoquote=#1.4 by werejag]forgive me little fanboy. but they are 3rd on sales for consoles and 3rd on sales for games and many compnaies are not going to make games for xbox. so where do u come up with your numbers? seems they lost it all ready[/neoquote] give me a break, where did you get that stupid idea that they were 3rd in game sales?? you have no proof to backup anything you say. http://www.businessweek.com/magazine/content/03_20/b3833108_mz063.htm "Worldwide, 7.84 million Xbox consoles were sold through Mar. 31, vs. 7.78 million Nintendo GameCubes."

Last edited by 16693 on 14 May 2003 - 18:51

#1.7 macrosslover on 14 May 2003 - 18:47

[neoquote=#1.5 by silly_walk]Companies don't sell products to lose money. Losing money is never a long term goal, and that seems like where MS will be for a while with the Xbox.[/neoquote] that's true. of course MS wants to make mone what company doesn't, but that's not happening right now., MS is losing money to penetrate into a market and apparently some fools just don't understand that (see above). if they have to lose 1-2 billion in the process of getting into a $7 billion or however much the videogame industry is then so be it.

#1.8 werejag on 14 May 2003 - 20:23

what luaghable is the fanboys think that microsoft will make a xbox 2

#2 davemania24 on 13 May 2003 - 17:11

Unlike Sega. Microsoft has a huge cash reserve. I hope they don't takeover the console market because of their finacial strength

(2 replies) #3 what_happened on 13 May 2003 - 17:22

..... ms is in trouble with this and with EA not supplying games for MS... out of all this people who bough the xbox suffer the most.

#3.1 BeLGaRaTh on 13 May 2003 - 18:56

[neoquote=#3.0 by what_happened]..... ms is in trouble with this and with EA not supplying games for MS... out of all this people who bough the xbox suffer the most.

[/neoquote] The only good comment there is EA not supplying games ... A good selling point,, buy an XBOX, so you dont have to face the crap that EA produces ... Name one decent game they have done that isnt a rehash of a previous game released by them ... Even the 007 game was crap ... EA could become the next 3D0 .. ie they were good in the beginning, but people soon realised that they were buying the same games over and over again ...

#3.2 tHaCuBe on 14 May 2003 - 01:40

LOL, and nah EA is making games for xbox, just not online, but not like its helping sony any, their online game play is so unorganized, no other system besides pc has such an organized system as Xbox Live, so ea's online decision isnt really affecting anything..

#4 Dazzla on 13 May 2003 - 17:40

This is simply down to selling more consoles, the loss they make on each console is going down as PC parts manafacturing is always advancing, but the amount of console sales are going up, hence the increased loss.

#5 theconsolefreak on 13 May 2003 - 17:53

Not suprised there....Even Nintendo are making more profits from Gamecubes even though their're not selling as much

Microsoft didn't care about how expensive the console was to produce as long it is more powerful than the other competitors and thats what made the decline for the X-box...instead of MORE SOLD = MORE MONEY! for them its MORE SOLD = LESS MONEY...pretty darn weird and stupid. It's a good job Microsoft has lots of money..and plenty of it to waste

#6 Eduardo on 13 May 2003 - 17:55

una isla de perdidas, un mar de ganancias (an island of losses, a sea of profit)

(3 replies) #7 aitf311 on 13 May 2003 - 18:01

Doom3, Half Life 2, and GTA3+4 will change this....

#7.1 Spyder on 13 May 2003 - 18:43

actually, for those of us who are tired of fps after fps, i dont think that adding more fps's to Xbox's already exhaustive library of fps's will help much?

#7.2 Dazzla on 13 May 2003 - 18:55

You're preaching to the wrong crowd Spyder

These lot will lap up any FPS that Uncle Billy will put in front of them.

#7.3 1337 on 13 May 2003 - 20:12

both of u are wrong (not spyder) FPS's on consoles stink!, have very little control over them and there just not as intense... meaning they WILL not help XBOX!

#8 jagedEdge on 13 May 2003 - 18:46

Xbox 2 (Next) will hopefully go on the market better. People were unaware of the power of the Xbox this year, and the late unveiling didn't help much. I've read many things on the Xbox 2. They're planning on putting their UltimateTV receiver into the Xbox 2 as a special version, saving money and space by buying one thing for two units. Obviously, the agreement the creators of GTA made with Sony will end soon, so Xbox (2) will also be featuring the GTA line now. I have an Xbox and I don't suffer at all. Xbox Live is great, and there are so many fun games for it that PS2 and Gamecube users don't have (Halo and Unreal Championship are just some of the examples). I can't wait to see the Xbox 2. I'm no fan of Microsoft or anything (I'm soon to be a Mac switcher), but I do like their console.

(2 replies) #9 1337 on 13 May 2003 - 20:09

YAY

DIE XBOX DIE

I H8 AMERICAN CONSOLES!!!! THEY ARE THE SHYTS!! JAPAPANESE! ALL THE WAY BABY!

#9.1 als345 on 13 May 2003 - 22:00

wow, thats intellegent

#9.2 Greenmuncher on 14 May 2003 - 03:12

[neoquote=#9.1 by als345]wow, thats intellegent

[/neoquote] can't you read, he's "l33t"

(2 replies) #10 un4given1 on 13 May 2003 - 21:08

Well... don't get me wrong... The XBox is not crap, but I will never own one. I do not like M$'s tactics. It's only a matter of time before you will have to register your games online with a CAL before you can play them.

#10.1 Mav Phoenix on 13 May 2003 - 23:58

Or worse, activate them...

#10.2 sodapop on 14 May 2003 - 03:26

Activation...I can see it now. It's very possible you just gave MS an Idea.

(2 replies) #11 Briandl79 on 14 May 2003 - 01:38

I'm not worried about a loss at all, the Xbox is just starting to really pick up steam, and with Halo 2, Doom 3, Half Life 2, GTA3 and a bunch of other great Live games on the way things are looking up for the Xbox.

#11.1 JrDZ13 on 14 May 2003 - 02:11

yah but the only one M$ will be making $$$ on is HALO 2, right? all the rest are made by developers...

#11.2 macrosslover on 14 May 2003 - 08:18

[neoquote=#11.1 by JrDZ13]yah but the only one M$ will be making $$$ on is HALO 2, right? all the rest are made by developers...[/neoquote] they get royality payments from third party titles, i think it's like $10 a copy. so the more 3rd party software that sells the more money they make. how do you think sony has made so much?? their first part software hasn't exactly put up GTA numbers, however if you get a cut (let's say 10)out of the cost of software and that software sells 5 million copies, you make $50 million right there. i believe this is the situation of how developer fees and such work in the industry i could be wrong, but i don't think i'm completely wrong.

#12 [EvilBeAr] on 14 May 2003 - 02:28

um MS is screwed if they release halo for the pc.. people will jump and buy pc halo instead of the xbox one.. PC's own everything. Screw the xbox.. its ugly anyways.

(1 reply) #13 perochan on 14 May 2003 - 03:01

m$ is not making profits at all cuz the units m$ are selling is lower than the costs of making xbox. so m$ lose money in any ways. And m$ is gonna lower the price of xbox in order to compete other consoles. in order for xbox to make money, m$ has to persuade japan to buy MORE xbox and it is not doing very well. m$ should just drop it...

#13.1 macrosslover on 14 May 2003 - 05:27

[neoquote=#13.0 by perochan]m$ is not making profits at all cuz the units m$ are selling is lower than the costs of making xbox. so m$ lose money in any ways. And m$ is gonna lower the price of xbox in order to compete other consoles. in order for xbox to make money, m$ has to persuade japan to buy MORE xbox and it is not doing very well. m$ should just drop it...[/neoquote] uh, if Japan buys more Xboxes, MS loses MORE money. the only way they can make money on the console is to reduce the production costs.

#14 krazeguy on 14 May 2003 - 05:41

i think counter strike xbox will help ms

#15 TheBlackJawa on 14 May 2003 - 06:19

The Xbox is superior in it's capabilities. Plus, you can mod those things like crazy. I think I support M$ on their attempt to bring a quality console to the market, but I think the X-Box Next (2) will be horrible, I want a PS3

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Microsoft Doubles Loss in Xbox Division - Filing

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Microsoft Doubles Loss in Xbox Division - Filing

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