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Xbox Division Posts $1.9 Billion Operating Loss for Fiscal 2007

biz.gamedaily.com — That Xbox 360 warranty charge is a real killer isn't it? Microsoft revealed its earnings today, and it wasn't pretty for the Xbox business. The good news is that revenue was up, and manufacturing costs continue to fall for Xbox 360. Profitability might even be right around the corner...

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  • chocobomog, on 10/11/2007, -9/+42FTA
    "Microsoft took a $1.06 billion charge in its fourth quarter due to the hardware defects and extension of the warranty...[the EDD Xbox division] posted an operating loss of $1.2 billion for the fourth quarter... the company said that Xbox and PC game revenue increased 19 percent to $650 million."

    So in one quarter, the Xbox lost nearly twice as much money as the entire games division made the entire year? Ouch. Even if they squeak out a profit in 2008, its not going to counter the billions lost by the Xbox division over the last 6 years. That doesn't bode well for a price drop in the near future, Microsoft's game division needs all the money it can get.
    • Mejogid, on 10/11/2007, -8/+15Since the launch of the original Xbox, they've been sold at a huge loss by Microsoft. MS can afford to spend billions to establish a brand name and prescence in the living room, and with their investment so far I don't see another year of huge losses stopping them.
      • byronm, on 10/11/2007, -12/+5Exactly. There are 150 million units up for grabs and Microsoft is inches away from profits. I bet those who cherry pick these headlines didn't grab the latest mention of a profitable forecast for 2008. NO. They also didn't mention the PS3 is loosing Sony upwards of 600+ million per quarter either.NOOOO..
        • Microdot, on 10/11/2007, -1/+2the ps3 losses money as it was just introduced. you failed to mention the several hundred million the ps2 STILL brings in topped off with the psp.
          how much money is the original xbox still bringing microsoft?

          oh.. thats right. it was killed off 2 years ago.




          if the 360 doesnt make money for m$ this time around, consider it canned. even the largest companies in the world wont invest billions on a losing venture for 10 years.
      • grumbel, on 10/11/2007, -0/+14Even Microsoft has a limited supply of money and shareholder goodwill. That the XBox1 cost them money was ok, since it established the brand, the XBox360 on the other side better turn out to make them money, since the brand is already established and there really is no good reason to not turn this thing into profit except for mismanagement.
    • jacksons98, on 10/11/2007, -5/+12@Mejogid Investors are already starting to get *****. Who was it that recently sold millions of shares?? The people who own stock care about one thing and that is how much more did we make over last year. At some point either the Xbox division makes money or it disappears. When that point is nobody knows, but investors don't like losing bilions of dollars. Espescially year after year after year. As the saying goes in business you're either growing or your dying.
    • mike17032, on 10/11/2007, -8/+6Well we all know a big part of this hit was from its choice to extend the warrenty. And I am glad they did, its a very customer friendly move for MS.

      I do have worries about the future after the 360 though, With Moore gone and margins so far into the red, we might not see an xbox 3. And that would make me sad, because the 360 and the first xbox were my favorite systems from their respective eras. You just cant beat their online play, and cool added features (i LOVE customer soundtracks). Live kicks ass.
      • toxicityj, on 10/11/2007, -1/+6I doubt that they'd give up on an XBOX 3. Sure losses are insanely high, but we're talking Microsoft here.
    • latova, on 10/11/2007, -1/+7My question is, why don't they just switch to the better hardware instead of still making 360's with the identical flaw, if they're eventually going to need repair anyway thats not profitable.
    • OhTheHumanity1, on 10/11/2007, -7/+5I promise this is not for the purpose of being yet another purpose to trumpet Halo 3, but seriously, losses on the console are acceptable when you are doing it for the kind of money making machines like Halo and GOW. Think of Halo 2 which sold 5 million copies in a month. This is not CDs, folks, we're talking $60 price tag, no less than $30 of which goes to Microsoft. It continues to be among the most played games on Xbox live, meaning the fan base has grown and grown. Come the release of Halo 3, we'll see the largest sales of any video game in history. Halo Wars follows. Clearly you can tell I'm a Halo fan, but fortunately Xbox has a lot more than that. The Xbox 360 is a long term investment and yes the warranty issues are a setback, but they WILL be fixed and the Xbox division will be very profitable
    • OwdenBowden, on 10/11/2007, -6/+4MS will make all the profit via the Marketplace and Live functionality of the 360. It is to entertainment and gaming what Itunes is to downloading music. The revenue from streaming media, downloads and more with be more than enough for ms to make up for billions lost in the last 6 years. REMEMBER - to win big you have to lose big. As more and more people are getting broadband in their homes the need to go to Blockbuster, or the Game / entertainment stores (including Movies) will virtually not exist because you will be offered it directly in your home. MS is creating THE NETWORK, THE DELIVERY SYSTEM for all of this. I can even see them being the backbone for delivery for ALL systems (PC, Nintendo< even PS#) because they have perfected it. This is where the money is. Lots and lots and lots of money.
    • hockey, on 10/11/2007, -3/+3Microsoft posts a 1.6 Billion loss from a single division and yet they are still worth a whole lot more than apple. . .
  • gwolf, on 10/11/2007, -17/+12Who cares?
    Wishful thinking isn't going to drive Microsoft away from the console business so you may as well abandon that particular fantasy fan boys.
    Microsoft's overall profits far out weigh their losses. They are the Army at your gates and they can carry on the siege far longer than Sony can.

    In a year from now when RROD is a fading memory and MS has all the games you will come to understand that it's far easier to fix overheating than it is to fix a bad choice in processors. Even the wide spread slant of the gaming press won't be able to overcome the simple truth that the 360 is the better platform for games. This isn't a side business or an experiment for MS, this is their core purpose for existing, they are in it for the long haul.
    • inajeep, on 10/11/2007, -1/+9Huh? Gaming is not their core purpose for existing. Who wants to drive them away from the console biz anyway? The more the merrier. You get them trying to drive down prices (eventually), more choice of games. This is where a close competition is good.
      • gwolf, on 10/11/2007, -1/+2News for ya, Games are software and MS is a software company, hence reason for existing.
    • mike17032, on 10/11/2007, -5/+8I care, because even though they can spare the money, they wont be willing to take a loss forever. And with Peter Moore gone I have concerns for its future.

      Maybe Moore left because he knew something we dont. The 360 isnt going anywhere, but there is no garentee of a console after it.
      • gwolf, on 10/11/2007, -0/+1Not our problem how MS spends it's money, but don't think for a minute you or I know the whole story about their profits.
    • plhearn, on 10/11/2007, -10/+3I own an xbox 360 and I love it to death, but I love my Wii even better.
  • rowlodge, on 10/11/2007, -16/+8wont even get halo 3 online now, was the reason i bought a 360, then peter moore all the sudden decides to abandon us, what a turd.
    • maddendude, on 10/11/2007, -3/+9what are you smoking
    • toxicityj, on 10/11/2007, -5/+4Who the hell ever said we weren't getting Halo 3 online? All I've heard is that 4 player co-op MIGHT not be coming on releas, but will with an update later down the road. so as Maddendude said. What are you smoking?
      • rowlodge, on 10/11/2007, -3/+2dont care about story anymore the last one sucked , i only played it once completely through when i played halo 1 at least a dozen times, this should tell somebody something. part 3 will suck too , dont get me wrong but i know you will, it;s all about the online now.
        • strictnein, on 10/11/2007, -1/+3Please, for the love of the Internet, learn to write in clean, coherent sentences. No one knows what you are saying.
    • Brad324, on 10/11/2007, -2/+5you bought an xbox for peter moore? wtf?
    • konard, on 10/11/2007, -0/+1Halo? The most overrated game in gaming history wont have On-line? Iam not surprised at all.
  • piper999, on 10/11/2007, -11/+38Good God. Instead of worrying about all the money I've spent on 360 stuff I feel like maybe I should actually thanking MS for running their gaming outfit like some kind of mega-charity that subsidises everyone who wants to play videogames.
    • Gryfft, on 10/11/2007, -5/+11Amen. The one part of Microsoft that seems to be genuinely charitable is the Xbox division.

      They just want us to have Halo :-)
      • battletrax, on 10/11/2007, -3/+1Im actually happy to pay $130 dollars for halo 3. Damn hardware failures
      • panzergeist, on 10/11/2007, -0/+1Actually, they are a bit more likened to your local crack dealer.
    • spawnfree, on 10/11/2007, -0/+2they really will pull out all the stops to try and dominate the games industry.
      Think of the billions they will earn if they do, they may even break even.
      just like they almost did with the original xbox.
  • TheNapalm, on 10/11/2007, -10/+2Halo 3 will be online but the co-op will not immediately be online, may be a downloadable content package
  • inajeep, on 10/11/2007, -14/+10at 22 diggs it's at the front page?

    • fli7e, on 10/11/2007, -2/+3Maybe I'm missing some sarcasm... does stuff like that *actually* bother you? o.O
    • chris9902, on 10/11/2007, -1/+6maybe because it's a story worth putting on the front page. Not another "AMAZING! [pics]" story
  • orangester, on 10/11/2007, -18/+13Who cares, so long as they keep making more Xboxes I'll be happy. Best Next Gen console yet. Digg me down all you want but the Wii is entertaining for only so long. PS3 is still quite a bit away from having anything close to a good game and with an already cheaper Blu-Ray player on the market there's no need for a PS3.
    • fani, on 10/11/2007, -7/+2I agree with you. Wii is 2001, PS3 is 2010 or 2005 ( depends on who you ask ), but the Xbox 360 is 2007 !!
  • M3RCINIAN, on 10/11/2007, -11/+5Yar, that's beacuse its a LONG TERM INVESTMENT *gasp*, the profits will come later on.Long term investment is so rare that people are shocked when they see it.
  • XeriousTrubble, on 10/11/2007, -9/+5props to microsoft for still running with it... as much as i dislike them (3 dead 360s doesn't garner much love from me), they have incredible heart. respect must be given for the stout.
    • plhearn, on 10/11/2007, -5/+3They don't really have a choice. They've got to make that 1.9 billion back or its their ass. And Sony also deserves props, maybe even more so, for running with it since nobody is buying the PS3.
    • grumbel, on 10/11/2007, -0/+7And by 'heart' you mean 'money'...
  • byronm, on 10/11/2007, -8/+10Oh yeah.. Armchair fortune 500 accounts FTW. Please.. If you can't see the forrest from the trees, keep your trap shut. The console wars are just beginning and Microsoft is in it to win. The reality of the matteris there are 150 million units to sell to the consumer for next gen consoles and Microsoft simply won't walk away from that potential market share. NO way.

    The other reality is corporate accounting. Its sort of convenient you get a huge writeoff during your most profitable quarters and its also convenient everyone is unaware of the statement that Microsoft is still on track to profits by 2008. Sure, the losses are unfortunate and not planned for but with a Billion franchise launching this quarter it will be long since forgotten next time we get a financial report.
    • chocobomog, on 10/11/2007, -2/+12 The entire games division ONLY generated $650 million last year, while that same division also caused 1.2 billion in losses in a single quarter. Even if they are profitable in 2008, their profits will not offset the billions lost. If you were a gambler, then it is exciting to win $200 one day. But if you lost $6,000 prior to winning that $200 then suddenly its doesn't look so good.
      How many years do you think the the 360 has left in it? If it only generates $650 million a year (which still does not yield profits), how many years will it take for the profits to offset 6 billion in losses? The 360 will need to be replaced long before that happens, which means billions more in R&D costs.
      • knetworx, on 10/11/2007, -4/+1I hate to say it, but I wouldn't be surprised if a lot of people bought a 360 when Halo 3 comes out. That could be a big help in offsetting previous losses. But anyway, who's to say the R&D will cost that much more? How much R&D do they need to put out another Xbox? The biggest R&D cost is in developing the very first console (probably a good reason why they're still in the red), but if you keep making consoles based off a previous console, the sales should outweigh the development costs. Not to mention, they've made a name for themselves in the gaming industry now, so selling their next console should be that much easier. Don't get me wrong, I'm no fanboy, I used to bash Microsoft gaming just as much as anybody else, but I'd be very surprised if this isn't all part of Microsoft's long-term plan....well, except the whole RRoD thing, I'm pretty sure they just ***** up on that one.
    • jeepnut24, on 10/11/2007, -2/+3X2 they want their boxes/software/solutions in as many houses as possible when the real shift to connected homes hits.
  • Coopdoggie, on 10/11/2007, -12/+4They may be losing money, but, they are the ones who are bringing us Halo 3.

    That's all that matters, right?
  • HOTM, on 10/11/2007, -2/+10Has Microsoft ever had a profit from the xbox division yet? I know they didn't at all with the first xbox. But what about the 360?
    • alvinrod, on 10/11/2007, -0/+8I think that the gaming division was profitable in the one quarter that Halo 2 was realeased, but it was only something like $80 million.

      Otherwise they've lost something like $4 billion on the whole with the original Xbox. As far as I know they haven't had a profitable quarter yet since releasing the Xbox 360, however they are hoping to be profitable next year. Taking the hit from the warrenty extension now will probably help them to achieve that.

      However, on the whole it will probably be several years before they recoup all of the money lost from the original Xbox and everything they've lost on the Xbox 360 up to this point, which is probably something around $7 billion.
      • IamTheProfessor, on 10/11/2007, -4/+3They have, however, managed to supply millions of households with not one, but at least two Microsoft products. It's just the start.
    • chris9902, on 10/11/2007, -1/+2not really. It's been in the red since day one. But money isn't Microsoft agenda with the Xbox. They have Windows to thank for funding their move into the home.
  • ExaltedDragon, on 10/11/2007, -11/+14In the latest Issue of Forbes, they published the 2006 Global 500 Index of the largest companies in the world.

    Sony is # 69 with $70.9 Billion in revenue
    Microsoft is # 139 with $44.3 Billion In revenue

    Sony is also protected by the Japanese Keiretsu business ownership structure (think equity sharing to make it simple) so any loss Sony takes is spread like Peanut Butter over bread, while when MS takes a loss, they take it right in the ass like the lone white guy in a prison shower.
    • strictnein, on 10/11/2007, -3/+2How about we look at financials for those two companies?
      MS:
      Total Cash (mrq): 25.48B
      Total Debt (mrq): 0
      Net income: 13.86B

      Sony:
      Net income: 1.04B
      Total Cash (mrq): 4.31B
      Total Debt (mrq): 9.00B

      But you're right, Sony FTW!
      • strictnein, on 10/11/2007, -0/+3Man... a lot of Sony fanboys on this thread. Ignore that MS made over $12 billion more than Sony last year and has about $30 billion more in cash. F'en idiots.
      • diggrim, on 10/11/2007, -2/+0Sony's Operating Income is $14billion, MS is $18billion...they companies aren't very far off before taxes.
    • gwolf, on 10/11/2007, -1/+2You are cherry picking numbers, tell them what Forbes puts their total net worth at.
  • stellarceltic, on 10/11/2007, -7/+2So... price drop? Please?
  • UnicornNinja, on 10/11/2007, -10/+4It's called tax avoidance people. If they reported the actual profits that they are generating, they would lose tons of money through income tax. And paying taxes is for chumps.
    • totorototoro, on 10/11/2007, -0/+2Oh really? Did anyone notify the Microsoft Vista division of that "fact"? Because they reported actual profits.
    • D1lux, on 10/11/2007, -0/+2Manipulating a financial statement is HIGHLY illegal and with the legal scrutiny Microsoft has had to face in the past decade, I doubt they would risk making such a move for a mere console.
  • jhuang16888, on 10/11/2007, -6/+0At this stage, all the corporations (Microsoft, Nintendo, Sony) are probably losing money because they lose money with every console sold. They make most of their money off games, and I'm sure they'll turn up profits or at least shrink that number as time goes on.
  • IamTheProfessor, on 10/11/2007, -8/+5Don't act like $1.9Billion is a lot for a company like Microsoft. I work for a software company that spends over $1 Billion a year and we're nothing compared to MS. MS generates not *A* Billion dollar revenue, but BILLION*S*... this isn't a big deal for them in the slightest.
    • shaselai, on 10/11/2007, -3/+3does your company make a profit out of the billion it spent? For MS, they have lost BILLIONS on Xbox/xbox360. How many BILLIIONS can your company spend before it calls it quits? Sure a billion is not much to MS but over time they rather they have invected those billions that would make them money - hell they shouldve donated the billions wasted on xbox to the government to help the poor!
      • IamTheProfessor, on 10/11/2007, -3/+2I'm not even sure you know what you're saying, so I'm not clear on how you expect us to understand what you're saying. If my company didn't turn a profit, and we spent a Billion dollars, I wouldn't be employed. You should take some basic business courses before you try to spit business theory.
        • shaselai, on 10/11/2007, -0/+2obviously, my point was that it is not "just a billion" to MS either - it has to come off of somewhere-in your case you would get fired and in MS's case most likely layoffs as well. And even a company like MS can't just take Billions and burn it like it's nothing. And a company like MS should know when to quit.
      • knetworx, on 10/11/2007, -0/+2If they donated the money to the government, I guarantee the poor would never see a cent of it. I'm sure Camp David would get spruced up a bit though.
    • D1lux, on 10/11/2007, -0/+1In reply to your second comment...
      You should be the one taking those business courses. A company can operate at a loss with hopes of turning a profit in the future; in fact that is what the Microsoft gaming division is doing. This ties in to the fact that MS does generate billions in revenue, however their gaming division does not. Some companies tend to believe in cutting their losses (again, basic business) so it is a pretty big deal for their gaming division, which is now further away from making a profit.
  • shaselai, on 10/11/2007, -5/+1if they had $1.2 billion loss in 4th quarter then it means they lost extra 700 million the first 3 quarters.. so they never made any profit prior to the 1.2 billion warranty ? If Halo 3 sells like 5 million copies and they charge 60$ that would be a decent profit and make a good dent on the loss.
    On hind sight I guess that might be why Moore was fired- i mean he resigned (sly fox) and went to EA. Last time Moore jumped ship was when dreamcast fell... wonder what's happening to 360 now? MS does have the money to "ride it out" unlike Sega though. They could possibly make a dime when Xbox 720 comes out.
    • IamTheProfessor, on 10/11/2007, -4/+2In case you forgot, MS sells more than just XBox and gaming accessories. They're a MULTI BILLION DOLLAR SOFTWARE COMPANY!
    • ExaltedDragon, on 10/11/2007, -0/+0so Moore is responsible for the DC too? No wonder they have so much in common! This guy is a moron.
  • YouRookies, on 10/11/2007, -4/+6Rushing the release of the 360 backfired on them. This is why a price drop will not be in the near future. It's just too much of a loss. You also have Halo 3 coming out and they know fanboys will pay anything to get a 360.
    • phrozenone, on 10/11/2007, -0/+2I agree, thats why this past E3 they gave such a strong power point presentation.... go figure
    • omgroffles, on 10/11/2007, -1/+1Rushing the release of the 360 backfired? If anything, it put them in the favorable position they've been in for the past 2 years.

      You obviously don't understand the concept of market position.
  • iluvudigg, on 10/11/2007, -1/+1The world's largest companies by revenue. http://en.wikipedia.org/wiki/List_of_companies_by_revenue Microsoft is 62
    • ExaltedDragon, on 10/11/2007, -1/+0Sony is #30!

      I dunno how I feel about a Wiki list though... Still just like Forbes it shows that SONY IS A MUCH BIGGER company than microsoft.
  • explodey, on 10/11/2007, -4/+0WiiS3, FTW
  • imfxxz, on 10/11/2007, -3/+1Microsoft world's largest software company ==> Revenue 44.3 Billion
    Sony Revenue ==> 70.9 Billion. Now that fact the manufacturing losses aren't calculated in the "Balance Sheet" but rather in P&L A/C's we can say that Sony is capable of withstanding a bigger loss than Microsoft
    • scotz83, on 10/11/2007, -0/+2While it's true Sony has greater revenue, and therefore has farther to fall before hitting zero, don't forget Microsoft's profits last year were around $12.5 Billion while Sony managed just $1.5 Billion. From this view, Microsoft has more cash on hand and can thus withstand a greater financial loss than Sony before falling into the red. Not really Sony's fault - consumer electronics simply cost more to manufacture than software does to write.

      Also note Microsoft's market cap is around $298 Billion, while Sony is at $51 Billion, indicating investors as a whole value Microsoft to be worth nearly six times as much as Sony.
    • strictnein, on 10/11/2007, -2/+1imfxxz: because revenue is the most important number, right? Oh wait, no, it's profit. MS's profit dwarfs Sony's, as does MS's cash on hand, as Sony is about 5 billion in debt.
      • D1lux, on 10/11/2007, -1/+1Umm... debt is not necessarily a bad thing strictnein. If you fail to realize this, you need to take basic econ/business/finance classes; I would offer to enlighten you as to how this works but I don't want to belittle you ;)
        Another thing you need to keep in mind is that many of the world's top companies have debts, but that does not mean they are in risk of going bankrupt (take Exxon Mobil and Boeing for instance).
        • strictnein, on 10/11/2007, -0/+1When did I ever say that all debt was "bad". That's not what I was arguing here.
          So, 4 billion in cash with 5 billion in debt is better than ~$30 billion in cash? What a ***** idiot you are. Belittle me? What a joke. Man, what f'en worthless school did you go to?
  • xzrules, on 10/11/2007, -1/+3i knew that Sony was a bigger corp than Microsoft cause MS is only in softwares with gaming being an exception while SONY makes electronics, music, movies they have a broadcast corp and now they are also manufacturing VAIO laptops
    • gwolf, on 10/11/2007, -0/+1You are mistaken.
    • DrThunder, on 10/11/2007, -1/+1People think Microsoft is the richest company in the world because of Bill Gates being the riches man or was the riches man. In order for the Xbox division to pull a profit they have to make 5 or 6 billion or more because they still haven't recouped the losses of the Xbox.
  • battletrax, on 10/11/2007, -4/+2Thats cause sony makes all kinds of electronics, if microsoft did the same, i think it would be profitable.

    Back to the point i think we should all donate $5 to Microsoft.
    • willemfkkc, on 10/11/2007, -1/+1MWUHAHAHAHA ... you're kidding, right ?
  • fauxXenophanes, on 10/11/2007, -5/+2... and now from the PS3 FANBOY section...


  • KompressorV12, on 10/11/2007, -4/+4Microsoft world's largest software company ==> Revenue 44.3 Billion
    Sony Revenue ==> 70.9 Billion. Now that fact the manufacturing losses aren't calculated in the "Balance Sheet" but rather in P&L A/C's we can say that Sony is capable of withstanding a bigger loss than Microsoft

    haha, looks like someone doesn't know the fking difference between revenue and profit... if your in the business of selling ferraris your going to make a ***** of revenue, but after you minus how much it takes to make the product your profit is much smaller... sony generates a mass amount of revenue because their products are very expensive because they are expensive to make (video camcorders, lcos tv's etc) microsoft spends a few million on making software then sells the discs at ridiculous prices when the packaging, shipping, and production of the material is under a few dollars... THAT is why microsoft will continue to be one of the largest companies in the world... dwindling sony
    • gwolf, on 10/11/2007, -0/+4You should check your sources, Microsoft is worth 4 or 5 times all of Sony.
  • sterken, on 10/11/2007, -0/+4It's still cheaper than having to do a recall.
  • gwolf, on 10/11/2007, -0/+1Sorry Misread your comment KompressorV12, you are of course correct.
  • HairyPoter, on 10/11/2007, -5/+2***** M$
  • dunlop, on 10/11/2007, -1/+3screw this I'm selling my 360....not
    Microsoft is trying to buy there way into our homes and for me it worked. I love my XBOX, it has the games I want to play and is the media center I need it to be and LIVE is great (Shadowrun FTW). Cling to all the RROD jokes but the fact they gave a 3 year warranty for this is super.

    While it comes down to personal choice my Wii is a $350 (I bought it with Zelda) paperweight, there is ***** all to do on the system, I tried to give it some time but the majority of games are brutal ports. I think it is a fine SECOND system, but it really cannot hold a candle to what a 360 or PS3 can do. Obviously nintendo is the best choice if you cannot afford Microsoft or Sony.

    Stop worrying about M$ losses, how close Nintendo is to being number 1 or whether the MSG4 will be a Sony exclusive. Research the systems, figure out what you want and can afford and buy the f*cking thing. Stay secure in the knowlege that you bought the best system for YOU and avoid bashing all the other systems on Digg (yes I bashed the Wii...but I bought it so the joke is on me).
  • lopla, on 10/11/2007, -2/+3Remember "2008 is the year of the PS3".. msft is SCREWED.
  • OttPrime, on 10/11/2007, -0/+1Consoles loose money for at least the first 18 to 36 months of their existence in the market (Moore's Law is a bitch). Perhaps not billions, but they loose money none the less. Does anyone know the financial report on the MS Games division? That is where the money is made and the investments grow.
  • replica, on 10/11/2007, -1/+4Sony
    Income* 1.04 Bil
    Sales Growth* +10.50%
    Income Growth* +0.40%

    Microsoft
    Income* 13.86 Bil
    Sales Growth* +11.30%
    Income Growth* +65.50%

    You Sony fanboys can shutup now.
    • toxicityj, on 10/11/2007, -0/+1i hate sony fanboys as much as the next guy, but dude 360 has been out for over a year longer than the PS3.
    • Topher06, on 10/10/2007, -0/+0And while Microsoft might make more money then Sony, their Xbox360 is turning into a big joke with sales down 60% due to quality concerns. Despite the PS3's higher price and Sony selilng it at a loss, I think Sony will be more profitable with PS3 then Microsoft will be with the Xbox360. Microsoft should just replace every unit of the Xbox360 sold with a re-engineered unit (take some of that 13 billion in sales and give back to the customers they rape), cut their losses, and see if they can make their Xbox division profitable for the next next generation system and learn from their mistakes.
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