Edge: Microsoft's Xbox division loses $229 million

[mike_intellivision]

Mazty said:

mike_intellivision said:
Funny.Nintendo reports losses in that range and everyone writes the company off. Microsoft reports losses in that range and everyone shrugs.

While admittedly Microsoft has other profitable units to keep the bottom line "in the black" -- continued losses could lead analysts and investors to call for the jettisoning of the games division.

Mike from Morgantown

There's nothing 'funny' about it; it's obvious economics.

Nintendo have nothing but their game division, whereas MS have numerous other incomes, whether it's Windows or other lesser known revenue streams such as their revenue from every android device sold, which is about $400 million a year. There are no signs that the game division will be ditched, but more likely that analysts will be speculating if the 360 has hit it's expiry date.

My post was a bit "tongue-in-check" -- mostly to point out the different takes that essentially the same type of news receives. Of the three console makers, Microsoft is in the best position currently to handle a small quarterly loss because of its other profitable. Sony would probably be in the worst because the entire company has been losing money.

 

As for shareholder complaints, this was not an "off-the-cuff" remark. Those were heard long-and-hard during the early Xbox start-up, money losing days.  So if the Durango Xbox R&D charges causes profits of the corprorate entity to plument, there will probably be complaints again.