April 29, 2005

Microsoft Xbox Back to Losses

Revenues in Microsoft's Home and Entertainment Division rose to $583 million in the March quarter, which is above the $519 million last year. However after a $84 million profit in the December quarter, the division lost $164 million this time.

Halo 2 software sales drove the profit last Christmas, but without big software releases, it seems Microsoft will continue to lose tons of money from the Xbox. Maybe that is why the Evil Empire is going to launch Xbox 360 without a hard-drive, to keep costs low in the next cycle. Unfortunately Microsoft is going to probably lose even more money with the new hardware launch as the next generation technology always costs and arm and a leg at the beginning of each cycle.

But don't be crying for Bill Gates because we all pay him through the Windows monopoly and Microsoft Office sales. $164 million losses are nothing, when the company did $9.6 BILLION in sales this quarter with a whopping $3.3 BILLION operating profit.