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Reader Comments (106)

Posted: Oct 25th 2007 7:58PM (Unverified) said

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kudos to the MC
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Posted: Oct 26th 2007 12:14AM (Unverified) said

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Your welcome, Microsoft.
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Posted: Nov 1st 2007 5:25PM (Unverified) said

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Indeed, its hammer time.
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Posted: Oct 26th 2007 7:46AM (Unverified) said

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Way to go MS!!!
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Posted: Oct 25th 2007 8:08PM fnm said

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So now MS is on the same level of Nintendo..printing money.
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Posted: Oct 25th 2007 8:08PM (Unverified) said

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except the 360's are probably still sold at a bit of a loss
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Posted: Oct 25th 2007 8:10PM SpartacusMagnus said

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No gonk, MS reported they have been making a profit on the 360 hardware some time ago.
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Posted: Oct 25th 2007 8:14PM (Unverified) said

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No. Not in the same galaxy.


Microsoft's games and devices division made its first profit in what... ever? And it was an operating income of $165 million? That's chump change to Nintendo. That hardly offsets the billions they've dumped into the red over the last couple years. Nintendo just TRIPLED its profit forecast for the fiscal year. $3.7 billion in one year. If Microsoft makes $165 million all 4 quarters they'll make less than 20% of what Nintendo's expected to make.
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Posted: Oct 25th 2007 8:24PM (Unverified) said

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oh sparty, cool
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Posted: Oct 25th 2007 11:34PM (Unverified) said

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Whoa, I didn't expect to get whited out there. I didn't mean that to be Haloz bashing or 360 bashing if I came across like that. I think we all know that the division behind the 360 BLEEDS money and is entirely funded by Microsoft Windows and Microsoft Office. Congrats for finally getting in the black, but I think a comparison to PRINTING money is not yet appropriate.
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Posted: Oct 25th 2007 8:11PM Rokatoro said

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well it looks like sony is the only one losing money out of this console wars game. even with the RROD thing MS still managed to pull a profit
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Posted: Oct 25th 2007 8:17PM (Unverified) said

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Of course M$ made money BECAUSE of the RRoD... a quarter of its customers had to buy more than one system...sometimes three...Just wait till they have to actually start honoring their three year warranty b/c the systems are still crashing like the bandicoot.
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Posted: Oct 25th 2007 8:22PM (Unverified) said

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Yep, and it only took 2 years of the the 360 to turn a profit. Its possible, although highly unlikely, that Sony might be able to turn a profit a year from now when the PS3 is 2 years old.
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Posted: Oct 25th 2007 8:21PM DWells55 said

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From Engadget:
"Microsoft has expanded its warranty coverage to three years, and will take a $1.05 billion to $1.15 billion charge to earnings for anticipated repair costs on the malfunctioning consoles."

Yeah, those red rings of death are certainly bringing in a lot of money for Microsoft. Nothing says "profit" like $1 billion+ in losses.
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Posted: Oct 25th 2007 8:22PM (Unverified) said

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what?

i doubt 20% of 360's are a 2nd system, that'd be crazy
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Posted: Oct 26th 2007 2:01AM FredFredrickson said

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You know what I love? People acting like others buying multiple systems is a bad thing. Yes, I realize that the PS3 hasn't had any serious hardware issues yet, but I've yet to see anyone buy a second system for any reason whatsoever. It says a lot about the overall quality of experience that the 360 offers when people will buy multiple systems to play the games, or wait for their Xbox to be repaired over and over again.
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Posted: Oct 26th 2007 9:09AM Slaziman said

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Flashover, please stop with your douche statements. If people actually BOUGHT three 360's, then it shows just how awesome a 360 is that some people would drop 1200$ on it.
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Posted: Oct 26th 2007 11:27AM VampireHunterZ said

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Regarding the $1 billion set aside for warranty. First of all it's for 3 years. That's $333 million a year. As time go by the hardware gets more efficient. Right now the hardware is more reliable than it was earlier this year. I've done some math and I think MSFT will end up eating some of that billion. I don't think they will need to spend all of it a repairs.
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Posted: Oct 26th 2007 11:42AM xGearSecondx said

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@ FlashOver

Like the PS2 and its Disk Read Errors? I'm SURE you had more than 1 PS2 within 1 year or so because I know I did. =/
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Posted: Oct 26th 2007 12:04PM Rokatoro said

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@Awesome Stuff
At least MS will replace it for you. If i remember correctly Sony said tough shit about about the PS2's DRE problems
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Posted: Oct 25th 2007 8:09PM SpartacusMagnus said

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So in one day the 'stiq reports financial hoorah for Nintendo and now MS and financial stress for Sony... Big news day.

Also, congrats MS, you've waited a looooooong time for this.
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Posted: Oct 26th 2007 10:42AM (Unverified) said

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where the hell is SDF talking shit about MS now?
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Posted: Oct 25th 2007 8:09PM DWells55 said

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Halo makes money for Microsoft? Shocking!
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Posted: Oct 25th 2007 8:11PM (Unverified) said

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Whoopty-frickin' do. Bill Gates made more money. That is reason to celebrate.
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Posted: Oct 25th 2007 8:21PM (Unverified) said

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These comments show that when you are down, Sony, people will kick you. When you are up, Microsoft, people will try to drag you down to their level. You people are inmpossible to please.
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Posted: Oct 25th 2007 8:24PM (Unverified) said

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eat your cake! now you too can sit on uncle bill's lap and tell him what you want for christmas!
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Posted: Oct 26th 2007 8:35AM Crono141 said

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THE CAKE IS A LIE!
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Posted: Oct 25th 2007 8:20PM fnm said

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@Spartacus

I thought it was the contrary since 360's are cheap to make,right?(the whole hardware profit thing)
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Posted: Oct 27th 2007 12:28AM (Unverified) said

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Flashover you sir are a moron.
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Posted: Oct 25th 2007 8:26PM (Unverified) said

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This isn't much of a surprise to be honest. We are talking about the most powerful software company in the world. They know how to do business and sell software. I wouldn't be surprised to see Halo 3 being the deciding factor on X360's success. I won't be surprised if I see Halo 3 sell 10 million copies in the next 1.5 years.
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Posted: Oct 25th 2007 8:22PM ummhello said

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Let there be cake!?!! Do you not know??

The cake is a lie...
The cake is a lie...
The cake is a lie...
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Posted: Oct 25th 2007 8:28PM ZippyDSMlee said

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Question has MS paid off its 5ish billion debt?Ya the RROD thing paded
the unit sales by 30ish percent in my suck arse estimates but unit
sells alone wont padd their pockets much.
-------------------------
Flashover
the point dear is that MS went into this like 5ish billion in the red, and they took losses on the 360 for the first year or 2...
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Posted: Oct 25th 2007 9:53PM UnnDunn said

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What debt? I think you'll find Microsoft is debt-free, in fact, they have something on the order of $40bn sitting in the bank collecting interest.

Yes, the Entertainment and Devices division (of which Xbox comprises a large part, but not the whole) has lost $5bn over the years, but Microsoft as a whole has never lost money in that time.
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Posted: Oct 25th 2007 8:44PM (Unverified) said

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Did MS break out how much of a drag Zune was on those results? (I assume not, just checking.)
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Posted: Oct 25th 2007 8:42PM Colossalhat said

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So they've only made about $23 million dollars in that division in the last two years?
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Posted: Oct 25th 2007 8:45PM (Unverified) said

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So...

The Wii/DS print money, the PS3 eats money and the 360...?
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Posted: Oct 25th 2007 8:48PM Colossalhat said

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Prints Monopoly money!
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Posted: Oct 25th 2007 8:49PM (Unverified) said

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The 360 keeps all the money.

But seriously, the true test would be when all the heavy hitters come out for the Wii and PS3. Microsoft gets to enjoy their lead (like their console lead, but will they maintain the lead when the games starts being released, like how the Wii conveniently stepped in front of the 360 then it came out?

(Granted, technically Nintendo is still in the lead, so this analogy doesn't really make sense. Ah well.)
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Posted: Oct 26th 2007 12:05AM (Unverified) said

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It will dominate both in software sales over the holiday season and well into next year. It won't even be close. They'll probably move 10mil units of games over the holiday season. PS3 and Wii won't like touch that combined.
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Posted: Oct 26th 2007 8:38AM Crono141 said

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Microsoft is predicting 7 million, and I think thats a stretch.

Wii's will sell out, of this there is no doubt. Its all a matter of how many Nintendo can make. If nintendo has made 10 million (worldwide) for holiday season, they will all sell.
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Posted: Oct 26th 2007 11:52AM xGearSecondx said

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PS3: Nom nom nom
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Posted: Oct 25th 2007 8:46PM (Unverified) said

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Posted: Oct 25th 2007 8:49PM (Unverified) said

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so? we already knew that

that doesn't mean people buy a 2nd one, they send their 1 into MS to get repaired/replaced/exorcized
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Posted: Oct 26th 2007 6:05AM (Unverified) said

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Hey Flashover:

www.amishrakefight.org/gfy

I can post links too, arrent I special?

Douche
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Posted: Oct 25th 2007 8:48PM (Unverified) said

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Why does everyone have to slate Bill Gates? He made a fortune, well done to him.

As for Halo raking in money? Yeah we know it was going to. Microsoft do actually try to make a profit as a company (and succeed). Congratulations to them for turning their 2nd generation console into a profit when there was actually something to compete against. (Playstation 1 did not have a challenge with my much loved Dreamcast).

I wish Sony a good turn around next year and with some of their exclusives I may just get myself a PS3. In the meantime, Nintendo damn you for bringing out Samba di Amigo soon :-)

So uhh, yeah, well done on the profit thing.
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Posted: Oct 25th 2007 8:54PM Colossalhat said

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"Why does everyone have to slate Bill Gates? He made a fortune, well done to him."

I hate him because he stole most of the ideas he brought to the market from others and stepped on his colleagues and friends for financial gain. I also hate him because (puts on a beat up fedora) he bought a notebook of Da Vinci's which belongs in a museum.
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Posted: Oct 25th 2007 9:12PM Vegeta has a ps3 said

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ummm that's a pretty gay reason to hate someone.
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Posted: Oct 26th 2007 6:02AM (Unverified) said

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"it belongs in a museum"

"so do you, Dr. Jones"

A big +1 for you Mr. Appropriate movie quote guy.
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Posted: Oct 26th 2007 7:23AM Korova Pamplona said

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Both of your posts are the reasons why xbox exists in the first place. To delete the hate for Bill Gates and MS and raise a generation of fanboys. That's why the 5bln hole is not a big deal, because when xbox division was started people and government was talking about breaking MS up into pieces, which is what happens with monopolies.

Instead MS distracted baby with a pwetty toy and then an even pwettier toy.

It does print money, in ways one can hardly imagine.
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Posted: Oct 26th 2007 1:40PM (Unverified) said

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Gates has also used his money to save literally MILLIONS of lives through the Bill and Melinda Gates Foundation. I have always disliked Microsoft's business practices, but Gates is at least trying to help the world and his fellow man (and doing a pretty good job of it). That counts for alot in my book.
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