jjseth on 06 July 2007
| DKII said: One nitpick - the extended warranty cost is being written off to the previous fiscal year that ended this week, so won't affect MS's profits for this year. Both Sony and MS are planning to make profits through things besides just hardware and software now, primarily advertising in the interfaces and inside the games themselves. MS of course gets more income from Live and a lot of accessories. |
That would be true, however if MS hasn't fixed the main culprit of that "ring of death", it will be an ongoing issue for the 360 and will continue to eat away at profits if they continue having a near rumored 30% failure rate. Also with MS extending the warranty to 3 years, will mean that older units that are more prone to failure will continue to eat away at costs as well. Hopefully they did fix the problem and failure rates are much smaller then rumored.
My pokemon brings all the nerds to the yard. And they're like, "You wanna trade cards?" Damn right, I wanna trade cards. I'll trade this, but not my charizard.
