Xbox Division Takes A $2 Billion Loss
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July 21st, 2007
Microsoft recently announced an extended warranty that would cost the company over a billion dollars. Now the company has reported a loss of $1.9 billion last fiscal year (ended this June). The “Entertainment and Devices Division” losses increased by 47% compared to last year, primarily driven by the new warranty extension.
Revenues were up by 28% on strong sales of the Xbox 360 console and the Zune, to $6.08 billion. Microsoft has shipped over 11 million Xbox 360 consoles so far, and hopes that the console business will turn profitable this fiscal year (ending June 2008).
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