Microsoft’s Xbox division posts US$ 289 million loss, cuts 360 estimates

It seems that Microsoft has taken a bit of a hit lately, with the company’s Entertainment and Devices division posting a US$ 289 million loss for the second quarter. According to GamesIndustry.biz, they’ve also cut fiscal year estimates for Xbox 360 hardware and now expects to ship a total of 12 million units by the end of June 2007, down from the original estimate of between 13 and 15 million.

Commenting to Reuters, Microsoft CFO Chris Liddell says that the company is “just being cautious about the second half. There’s a reasonable amount of inventory in the channel.” Despite the US$ 289 million loss, the Entertainment Devices division was also responsible for a US$ 2.63 billion profit during the second quarter.

Microsoft says that repair expenses and the extension of the 360 console warranty from nine months to a year in the US and Canada ate into the division’s profitability. The Entertainment and Devices division not only incorporates the Xbox 360 and software, but also the newly launched Zune media player, PC games, TV platform products, and mobile and embedded devices.

Via Games Industry

It seems that Microsoft has taken a bit of a hit lately, with the company’s Entertainment and Devices division posting a US$ 289 million loss for the second quarter. According to GamesIndustry.biz, they’ve also cut fiscal year estimates for Xbox 360 hardware and now expects to ship a total of 12 million units by the end of June 2007, down from the original estimate of between 13 and 15 million.

Commenting to Reuters, Microsoft CFO Chris Liddell says that the company is “just being cautious about the second half. There’s a reasonable amount of inventory in the channel.” Despite the US$ 289 million loss, the Entertainment Devices division was also responsible for a US$ 2.63 billion profit during the second quarter.

Microsoft says that repair expenses and the extension of the 360 console warranty from nine months to a year in the US and Canada ate into the division’s profitability. The Entertainment and Devices division not only incorporates the Xbox 360 and software, but also the newly launched Zune media player, PC games, TV platform products, and mobile and embedded devices.

Via Games Industry