NEWS - Monday, November 8, 2004


Master Chief Could Save Earth And MS

This week’s launch of Halo 2 is not only Microsoft’s most important game launch of the year - it could also drive sufficient software sales to give the firm’s Home and Entertainment division its first profitable quarter since the arrival of the Xbox. The arrival of Bungie’s sequel to the best-selling title on the platform marks a key point in Microsoft’s efforts to wrest market share from rival Sony, and will be vital to building up the company’s credibility as a console manufacturer ahead of the arrival of its next-generation platform next year. In the more immediate term, though, Halo 2 could potentially sell sufficient units to put Microsoft’s Home and Entertainment Division, which houses the Xbox project, in the black for the December quarter according to comments attributed to Wedbush Morgan analyst Michael Pachter in a Mercury News feature. The division has lost several billion dollars on the Xbox project to date, making Microsoft’s struggle to gain a foothold in the games industry into an extremely expensive venture, and in the most recent quarter showed losses of $273 million. However, Halo 2 could easily sell around five million units according to Pachter’s estimates, generating around $200 million in sales for the division, while if half of the Xbox installed base buys the title, sales could reach $400 million. Almost 1.5 million units have already been pre-ordered in North America alone, according to some estimates. Combined with the falling cost of manufacturing the Xbox hardware, this could be enough to drive the division into profit for the quarter - although perversely, stronger Xbox hardware sales make profitability harder to reach, since the company is still believed to be making a significant loss on each hardware unit sold. If Microsoft can manage to give the Home and Entertainment division at least one quarter in the black, it will be a major coup for the company - which has been criticised by some commentators for gaining only a 15 per cent market share of the games industry while continuing to make significant losses on the Xbox every quarter.
Source: http://www.gamesindustry.biz

Comments

Site Statistics

Registered Members: 44,323
Forum Posts: 725,653
Xbox One Titles: 1,081
Xbox 360 Titles: 1,085
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 585
Original Xbox Titles: 987
Staff Reviews: 1,643
Member Reviews: 10,339
News Articles: 14,074
Screenshots: 30,717
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News








See News Archives

Community Forum Activity

Xbox One Assassins Creed Origins
Post by oryanphine
1 Replies, 339 Views

Xbox One S Porsche 919 Hybrid Edition
Post by oryanphine
3 Replies, 412 Views

OG Xbox on Xbox One now live!
Post by Kamshaft
2 Replies, 634 Views

Xbox One S Renault F1
Post by oryanphine
2 Replies, 466 Views

Xbox One S Wolfenstein 2 The New Colossus
Post by oryanphine
1 Replies, 631 Views

Xbox One S Prey
Post by oryanphine
0 Replies, 433 Views

Xbox One S Cuphead
Post by oryanphine
2 Replies, 728 Views

Xbox One S Shadow of War a gagner
Post by oryanphine
0 Replies, 418 Views

I Buy Very Rare XBox 360 Faceplates
Post by Smill
8 Replies, 1029 Views

Xbox Wire desormais disponible en francais
Post by oryanphine
0 Replies, 782 Views

Manette Xbox 360 Gamestop Radioactive
Post by oryanphine
1 Replies, 1092 Views

Xbox One Moratl Kombat X sur Ebay
Post by oryanphine
0 Replies, 1056 Views

Console Xbox 360 et faceplate Xbox 360 in package blue
Post by oryanphine
0 Replies, 1014 Views

Seagate Fanfest External Drive Scorpio
Post by oryanphine
2 Replies, 1370 Views

Ultimate Game Face
Post by oryanphine
3 Replies, 1257 Views

© 2000-2017 XboxAddict.com - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. XboxAddict.com is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics