Xbox 360 loss

[SE fanboy]

(http://www.next-gen.biz/index.php?option=com_content&task=view&id=3988&Itemid=2)Next-Gen.biz (http://www.next-gen.biz/index.php?option=com_content&task=view&id=3988&Itemid=2) has an article discussing Microsoft's operating losses in relation to the Xbox and XBox 360. Whilst the Xbox helped the Home Entertainment division to a US$485 million operating loss in 2005, for the financial year ending June 30 2006, the Xbox 360 has helped the Microsoft division to an incredible US$1.26 billion operating loss, with CEO Steve Ballmer stating The cost of producing Xbox 360 consoles was higher than expected.

The losses show Microsoft's long-term investment in the gaming sphere, with the company not planning on making a profit until 2008.
http://www.news0r.com/index.php?p=3906

The amount of money a company is willing to lose on a product shows how much they believe in the product. Microsoft obviously wants to do great in this market and that is great unless they create a monopoly in the market again.

[reality]

Lol you just posted this twice.

[spandexman]

The thing is MS has the money to lose on the 360. They might lose 1.6billion on the 360 but they earn 40billion in other stuff. With vista launching soon it doesnt matter is the 360 losses 10billion, MS will still earn money. Microsoft is still at the point where they lose money per console sale.

The fact that they lost 1.6billion just means they are selling alot of consoles. I would expect Sony to lose about the same amount of money this time next year.