BDGamer » profit http://www.bdgamers.net Gaming news for every platform under the sun. Tue, 03 Aug 2010 08:43:44 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Xbox Division Brings In Losses of $1.8 billion for Microsoft http://www.bdgamers.net/2007/07/23/xbox-division-brings-in-losses-of-18-billion-for-microsoft.html http://www.bdgamers.net/2007/07/23/xbox-division-brings-in-losses-of-18-billion-for-microsoft.html#comments Sun, 22 Jul 2007 18:12:29 +0000 Rajiv Ashrafi http://www.bdgamers.net/2007/07/23/xbox-division-brings-in-losses-of-18-billion-for-microsoft.html It comes as no surprise that Microsoft’s Entertainment and Devices Division, of which the Xbox is part of, has posted a $1.89 billion operating loss, a 47 percent increase from 2006′s $1.28 billion hit. Interestingly, their revenues are up 28 percent than last year, though it didn’t help them recoup losses.

As per Gamespot, who carries detailed numbers on this matter, the company shipped 6.6 million Xbox 360 units in the last year, up from 5 million in FY2006. Its current installed base is 11.6 million strong, the most in the current-gen console race. The billion dollar hit came from the company’s unprecedented Xbox 360 warranty announcement, which they extended to three years.

Although the company took a hit in this division, Microsoft made quite a bit of profit in its other divisions, seeing $14.7 billion of net income on revenues of $51.12 billion, a 15 percent increase over the prior fiscal year.

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