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Forums - Sales Discussion - Another troubled quarter for the 360

reverie on 26 April 2007

Microsoft's 3Q report is out and it's time to revisit the figures for the Microsoft Entertainment Division.



Revenue: $982 million (down from $1182 million a year ago).
Operating loss: $315 million (down from $402 million a year ago).

This is awful! Huge losses despite sleeper sales. I would have expected them to work on their margins this quarter, after they had pushed those magical 10 million units out of the door last quarter and were now planning to take it a little more quiet this year until the summer. I was expecting losses of around $100 million, not $300 million.


Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

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FishyJoe on 26 April 2007

Compared to Sony's losses, that's nothing.



BrutalDeluxe on 26 April 2007

That's 'Entertainment and Devices' division. I wonder how much Zune lost them?



reverie on 26 April 2007

FishyJoe,

As you can see in my avatar it's not exactly nothing. Sony is going way down but that's a place were Microsoft H&E/E&D has always been and remains to stay at for another while as we can see today. The 360 business is not improving, that's the bottom line.

BrutalDeluxe,
The Zune is selling a few 100k per quarter and the hardware was not developed by Microsoft. On the other hand we have the Mac Business unit, Windows games and Microsoft mouses & keyboards all making reasonable profits in this division.


Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

Lingyis on 26 April 2007

meh, drop in the bucket when it's making $5bln.

but you bet they'd hope by now the entertainment division is no longer losing money. 



the Wii is an epidemic.

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ceres on 26 April 2007

Don't forget that this isn't solely limited to the 360 and outside factors (Zune) may hurt/help the division. They've continued to spend money on development and stupidly released the elite instead of just pricedropping to move consoles. I've got plans to buy a premium after a pricedrop if the new processor has rolled out. The elite doesn't stir anything in me to buy it. Most anyone I've heard interested in it already owns a 360.



To cash in my CC rewards points for $300 in Circuit City gift cards to purchase a 360 or not: That is the question.

HappySqurriel on 26 April 2007

The entertainment has (historically) been a massive jumble of projects which have lost Microsoft Money ...

I'm really not up to date about all of the projects it is handling but I suspect that the losses (and lower revenue) are all related to the XBox 360



FishyJoe on 26 April 2007

Last I heard from sony is that they estimated their 06/07 operating losses in the gaming division to be close to 250 billion yen (Approx $2.15 billion).



reverie on 26 April 2007

FishyJoe,

That's tough for Sony but doesn't really make the 360 look any better in this.


Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

FishyJoe on 26 April 2007

You're right. Nintendo on the other hand, WOWIE! Profits galore!