NEWS - Friday, May 4, 2007


Bach: Xbox Will Make a Profit in 2008

Robbie Bach said: "It’s a business that will be profitable next year. We’ll make money next year and that will be the first time, which is pretty exciting." Microsoft announced last week that falling Xbox 360 sales contributed to a 21 per cent drop in revenues for the entertainment and devices division. The first quarter of 1007 saw an operating loss of USD 315 million (EUR 232 million) for the division, which also makes the Zune mp3 player. But these losses were reduced from the same period last year. Bach told eWeek that he expects Microsoft to stop making a loss on console production soon, with revenue from games, Live and peripheral sales contributing to positive cashflow some time in 2008. "Xbox is the hardest piece of consumer electronics hardware to produce in the world, no debate," he said, admitting that "costs are a little higher than we’d like". Microsoft doesn’t expect to make a profit on hardware alone, but "we’ll probably be gross margin neutral on that over the life cycle of the product, and try to break even on that". But he feels growth in the rest of the business is increasing fast enough to offest production costs. "Right now we’re doing a pretty good job. We’re humming pretty well in the business. Game attach rate [is at the] highest level in history for a game console at this stage in the life cycle. The same with our peripheral attach rate. Xbox Live has over 6 million members. The pieces are in place to drive the proverbial billion dollars." Bach also commented on Microsoft’s competition, saying he felt Nintendo’s Wii put it in a much stronger position than Sony. "I think Nintendo and Microsoft are clearly in the driver’s seat on what’s happening in this generation," he said. "Sony I think has some real challenges. They’ve got a pricing problem, they have a cost problem, they have a content problem, and they don’t have an online service." He also added that the Wii had received "more broad-base acclaim that I would have expected" and was "a very nice product, but it actually has a relatively specific audience and a fairly specific appeal." The challenge it presented to Microsoft was how to compete with it in the casual market, on both Xbox 360 and Windows, he said.
Source: http://www.gamesindustry.biz/

Comments

Site Statistics

Registered Members: 44,317
Forum Posts: 725,652
Xbox One Titles: 1,071
Xbox 360 Titles: 1,085
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 585
Original Xbox Titles: 987
Staff Reviews: 1,641
Member Reviews: 10,339
News Articles: 14,065
Screenshots: 30,706
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, 302 Views

Xbox One S Porsche 919 Hybrid Edition
Post by oryanphine
3 Replies, 344 Views

OG Xbox on Xbox One now live!
Post by Kamshaft
2 Replies, 580 Views

Xbox One S Renault F1
Post by oryanphine
2 Replies, 447 Views

Xbox One S Wolfenstein 2 The New Colossus
Post by oryanphine
1 Replies, 585 Views

Xbox One S Prey
Post by oryanphine
0 Replies, 405 Views

Xbox One S Cuphead
Post by oryanphine
2 Replies, 680 Views

Xbox One S Shadow of War a gagner
Post by oryanphine
0 Replies, 398 Views

I Buy Very Rare XBox 360 Faceplates
Post by Smill
8 Replies, 990 Views

Xbox Wire desormais disponible en francais
Post by oryanphine
0 Replies, 762 Views

Manette Xbox 360 Gamestop Radioactive
Post by oryanphine
1 Replies, 1079 Views

Xbox One Moratl Kombat X sur Ebay
Post by oryanphine
0 Replies, 1035 Views

Console Xbox 360 et faceplate Xbox 360 in package blue
Post by oryanphine
0 Replies, 992 Views

Seagate Fanfest External Drive Scorpio
Post by oryanphine
2 Replies, 1352 Views

Ultimate Game Face
Post by oryanphine
3 Replies, 1230 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