Xbox 360 sales down 60%, profit continues to plummet

Mind lending MS some money? - Image 1Information Week reports that Xbox 360 sales have gone down 60% in its latest fiscal quarter. Microsoft stated Thursday that 700,000 360 units were shipped, compared to 1.8 million in the same quarter last year. More boxes were sold after MS increased warranty to three years, but it looks like the stunt wasn’t enough.

Microsoft’s Entertainment and Devices Division, which handles the 360, experienced fourth quarter revenue drop 10% year-over-year to US$ 1.16 billion on an operating loss of US$ 1.20 billion, according to Information Week. Last year, US$ 423 million went down the drain for the group.

According to Microsoft, extending the box’ warranty took US$ 1.06 billion off earnings. The problem doesn’t stop there, with lawsuits filed against the giant company for the 360’s design damaging game discs. Such claims have been shrugged off. It doesn’t help that Peter Moore moved over to EA for his family.

On the other hand, competitors in the gaming industry have been faring better. As we all know, Nintendo continues to dominate both the console and handheld scene. Sony experienced substantial increase in sales after the PS3 price cut, while the PSP and PS2 are still making some money.

With that said, Microsoft’s path with the 360 is still looking bright. Halo 3 is expected to bring Microsoft out of constant losses, and other topnotch titles will grace the box to boost profits. We’ll have to wait and see before making any judgements on how Microsoft stands now.

Via Information Week

Mind lending MS some money? - Image 1Information Week reports that Xbox 360 sales have gone down 60% in its latest fiscal quarter. Microsoft stated Thursday that 700,000 360 units were shipped, compared to 1.8 million in the same quarter last year. More boxes were sold after MS increased warranty to three years, but it looks like the stunt wasn’t enough.

Microsoft’s Entertainment and Devices Division, which handles the 360, experienced fourth quarter revenue drop 10% year-over-year to US$ 1.16 billion on an operating loss of US$ 1.20 billion, according to Information Week. Last year, US$ 423 million went down the drain for the group.

According to Microsoft, extending the box’ warranty took US$ 1.06 billion off earnings. The problem doesn’t stop there, with lawsuits filed against the giant company for the 360’s design damaging game discs. Such claims have been shrugged off. It doesn’t help that Peter Moore moved over to EA for his family.

On the other hand, competitors in the gaming industry have been faring better. As we all know, Nintendo continues to dominate both the console and handheld scene. Sony experienced substantial increase in sales after the PS3 price cut, while the PSP and PS2 are still making some money.

With that said, Microsoft’s path with the 360 is still looking bright. Halo 3 is expected to bring Microsoft out of constant losses, and other topnotch titles will grace the box to boost profits. We’ll have to wait and see before making any judgements on how Microsoft stands now.

Via Information Week

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