The Xbox made money – finally

45 second read
14

Yesterday Microsoft released its latest financial figures and inside was something that will warm the heart of the ex Peter Moore and all the current Xbox guys.

The division that produces the Xbox 360, the Entertainment and Devices Division, has finally turned a profit. For the last financial quarter the division has raked in $165 million. That’s quite some turn around.

I am sure the accountants will be able to write that off somewhere for tax purposes but it does go to show that the 360 is not going anywhere anytime soon.

Xbox Division Posts Q1 Profit : Next Generation – Interactive Entertainment Today, Video Game and Industry News – Home of Edge Online

Last Updated: October 26, 2007

Gavin Mannion

I for one welcome our future robotic overlords

  • Milesh Bhana

    This is surprising (in a good way), i know MS projected that they’d be profitable end 2007/early 2008, but that was before they knew of the hardware failures, which i’d assume has made an insane dent in those projections.

    It makes me think two things
    1) MS predicted that too and decided that being a year early was worth having approx 30% of their consoles coming back with RROD.
    2) That attach rate (for games AND accessories) is amazingly good.

    I’m thinking it’s both, but congrats MS, only 6 years to be profitable.

  • SlippyMadFrog

    I think one thing is for cetain now, the Xbox is here to stay, Yay!!!

  • doobiwan

    Well they have to sustain it first, Halo 3 itself is a spike, if it can lift them over the edge, lets hope Novembers awesome games can keep them there.

  • PillsburyDeeBoy

    All this goes to show is that the Halo is a juggernaut.

  • Ruslan

    And with Mass Effect, Alan Wake and a couple of other exclusives it could spike again. πŸ™‚

  • LazySAGamer

    Don’t forget that this division had $1 billion written off so there is more to this than Halo

  • Milesh Bhana

    Maybe the Zune did better than expected…

    (yes, i’m kidding)

  • abev

    How did they get the $1 BILLION written off??
    When I read this article I thought, shiiit they must be doing insanely well to have already made up for all the RROD damage, but apparently not. Surely they could only report profit once the billion is over turned?

  • LazySAGamer

    @Abev, when I said written off I meant that they had $1b charged to their account. They have done insanely well to make up that money.

    Also remember the $1 billion is spread over 3 years so they only had to recoup $333million (only πŸ™‚ )

    Halo 3 made about $250 million for them as well… Accounting is dodgy but needless to say this is good news for Microsoft

  • doobiwan

    The $1billion write off was tactical accounting genius, Enron would be so proud πŸ˜‰

    Basically, as I understand it, instead of absorbing the increase in warranty costs over the next few years as you would do, in the PREVIOUS financial quarter (Q4 ’07) (to be SPENT over 3 years) MS said “our bad, we’ll put this aside to fix those problems”. The $billion is completely lost in the billions of profit they declared that financial year, and the Xbox 360 division goes forward reporting their figures as if there was no repair issue in the first place.

    I know Abe’s going to cry foul, and that’s a fair matter of perspective. At least they didn’t lose $841million just on a day to day basis, when 2/3 products are profitable. πŸ˜‰

  • abev

    So technically M$ xbox devision could give everyone in the world a console and then just get M$ Corp to right off the debt and still report a profit. Where is my free console??

  • LazySAGamer

    In the mail πŸ˜‰

  • doobiwan

    Swear your allegiance to Xbox, slaughter your PS3 with a sledgehammer and maybe Bill G will make a plan πŸ˜‰

    Although you’ll still have to pay monthly subs for Live! :p

  • abev

    Do you have a tracking number for me Gavin? πŸ˜‰

Check Also

Stephen Chbosky to write and direct Disney’s Prince Charming movie

We've seen Disney look to tell their stories from a villains perspective. Now we will be g…