Entertainment and Devices Division sees a 47 percent increase in its annual operating loss, thanks to $1.06 billion in warranty-extension costs and slowing 360 sales.
Besides decreased Xbox 360 console sales, the EDD's fourth quarter suffered a catastrophic blow when then-Corporate Vice President Peter Moore announced a three-year extension of the Xbox 360 manufacturer's warranty. Today, the company confirmed it took a $1.06 billion charge as a result of the unprecedented move, causing operating losses for the quarter to tally a massive $1.2 billion--a staggering 183 percent year-on-year increase. The company said the loss was lessened somewhat by "decreased Xbox 360 console manufacturing costs" and "increased Xbox accessories and video game sales."
GL: "Staff writer Shaz reflects on his small library of physical games he's kept throughout the decades, and how a recent move made him nostalgic."
I lost my drive for collecting physical games due to many discs lacking the whole complete game. Instead, of collecting games I started collected figurines.
I am a collector have a room dedicated with a couple original arcade cabinets, physical game library, old and new consoles and controllers backlit with LED lighting. It’s very cool to have but with emulation being so strong and prevalent, I sometimes feel foolish because the hobby is expensive and like another said, the full game is not always on the disc. Could probably spend more wisely but I enjoy it.
"Nordic Game has revealed the winners of this year’s Nordic Game Awards, which took place on Thursday, May 23, during NG24 Spring and streamed live from Slagthuset in Malmö, Sweden." - Nordic Game.
Indie games are single-handedly carrying the gaming industry right now and it's about time they get their deserved recognition.
Vista that saved them in their 4th quarter.
inb4themassivebashingoffanboys
@PS360Wii
But nobody wants to waste millions (worst billions) on a console that has been around for quite some time and keep on losing money too just make a warranty or anything in particular on it. They want to gain lots of profit, not lose a whole bunch of the profit and win just a few if not anything at all.
Sure companies that make hardware devices tend to have these situations were there product is in need better there standards but they don't expect to lose a billion on fixing some errors.
That's why tests exist. The 360 was just rushed to the stores because MS wanted to be way ahead of the PS3. Which is a great idea for any company who does this, but if you don't make extensive tests of your products first, these situations tend to happen in a great loss. I never heard any news of the original Xbox having problems and it's because they stood there peaceful time testing what became a great console with hardly any defects.
MS just needs to be more alert on these things for next generation same as the Sony with there price. (But that's another story)
edit* Damn I can't belive I lost all my bubbles and I don't post anything fanboyish.....
Did MS ever make any money on the first Xbox?
What did the total number add up to there in dollars.
$1.89 Billion in debt!!! I don't care if microsoft can afford it, no-one in that company will be happy about that. Will xbox 360 even make a profit? In all seriousness, on the whole microsoft does not know what they are doing when it comes to games. If they did, they would have made a profit. That IS the name of the game. They were in debt with the xbox 1, they have a $1.9 billion debt with the 360, i mean what the hell? If this were any other company, they would have cut bait and taken a hint a long time ago. It comes down to microsoft views the gaming industry like they view every other avenue of other industries: See what makes alot of money, copy it, buy everyone out...they don't EARN anything for themselves which is something Sony and Nintendo have respectfully done.
$2 billion may be a drop in the ocean or whatever for microsoft but its incredibly noticable to their business and shareholders. I think there was more to Peter Moore leaving then 'family problems'. And its quite the mess you've left the xbox 360 division in isn't it peter?
Maybe words won't do it, a picture may do instead:
Introducing...Microsoft's business model
The article where they say MS made money this quarter and XBOX 360 fanboys are already jumping up and down.