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The Xbox made money – finally

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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

14 Comments

  1. Milesh Bhana

    October 26, 2007 at 09:29

    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.

    Reply

  2. SlippyMadFrog

    October 26, 2007 at 09:49

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

    Reply

  3. doobiwan

    October 26, 2007 at 10:14

    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.

    Reply

  4. PillsburyDeeBoy

    October 26, 2007 at 10:22

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

    Reply

  5. Ruslan

    October 26, 2007 at 10:34

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

    Reply

  6. LazySAGamer

    October 26, 2007 at 11:16

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

    Reply

  7. Milesh Bhana

    October 26, 2007 at 11:39

    Maybe the Zune did better than expected…

    (yes, i’m kidding)

    Reply

  8. abev

    October 26, 2007 at 13:14

    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?

    Reply

  9. LazySAGamer

    October 26, 2007 at 13:21

    @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

    Reply

  10. doobiwan

    October 26, 2007 at 13:54

    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˜‰

    Reply

  11. abev

    October 26, 2007 at 14:56

    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??

    Reply

  12. LazySAGamer

    October 26, 2007 at 14:58

    In the mail πŸ˜‰

    Reply

  13. doobiwan

    October 26, 2007 at 15:48

    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

    Reply

  14. abev

    October 26, 2007 at 16:29

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

    Reply

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