NEWS - Friday, July 20, 2007

Xbox Warranty Drives $1.9 bln Loss

Losses for the Entertainment and Devices Division (EDD) increased by 47 percent for the year ended June 30, due primarily to a $1.06 billion charge stemming from the extension of the Xbox 360 hardware warranty. Microsoft said reduced console manufacturing costs partially offset the charges caused by the upgraded warranty. Annual revenues for the EDD (which includes the media player Zune, TV platform products and mobile embedded devices) increased by 28 percent to $6.08 billion, driven by Xbox 360 hardware, accessories, software and Zune sales. The fourth quarter in the EDD was down, with operating losses increasing 183 percent to $1.2 billion, again due to the billion-dollar-plus warranty charge. Revenues dropped 10 percent from a year ago to $1.16 billion due specifically to "decreased Xbox 360 console sales." Microsoft shipped 700,000 consoles during the quarter compared to 1.8 million for the same period a year prior. Xbox and PC game revenue decreased $265 million or 28 percent. The firm has shipped 11.6 million consoles to date since the Xbox 360’s November 2005 launch. Microsoft is confident that the Xbox business will be profitable throughout the current fiscal year. Overall, Microsoft announced revenues of $13.37 billion for the quarter and $51.12 billion for the full year, up 13 percent and 15 percent, respectively. Windows Vista and Microsoft Office 2007 were the primary earnings drivers. For the quarter ending September 30, Microsoft overall expects revenues of $12.4 billion to $12.6 billion and operating income of $5.0 billion to $5.2 billion. For the fiscal year, the software giant anticipates revenues of $56.8 billion to $57.8 billion and operating income of $22.2 billion to $22.7 billion.


Site Statistics

Registered Members: 43,984
Forum Posts: 725,144
Xbox One Titles: 655
Xbox 360 Titles: 1,084
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 583
Xbox Titles: 847
Staff Reviews: 1,448
Member Reviews: 10,339
News Articles: 13,082
Screenshots: 28,839
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News

See News Archives

Community Forum Activity

Games with Gold for November - Count me in
Post by TheOutcast-XBA
0 Replies, 17 Views

Xbox One Edition Limitee Borderlands The Handsome Collection
Post by oryanphine
1 Replies, 32 Views

Xbox One Edition Limitee et controllers
Post by oryanphine
1 Replies, 36 Views

GOW 4 Horde Credit and XP Earn Rate Updates
Post by Nato King
1 Replies, 69 Views

Post by Nato King
1 Replies, 64 Views

Red Dead Redemption 2 releasing Fall 2017
Post by Nato King
5 Replies, 114 Views

Xbox One S Protoype Zebra
Post by oryanphine
3 Replies, 150 Views

Xbox One South Korea Edition Limitee Mother Pearl
Post by oryanphine
1 Replies, 94 Views

Xbox One Official China Edition limitee Lunar New Year Monkey 2016
Post by oryanphine
2 Replies, 109 Views

Xbox Play Anywhere Set up.
Post by Nato King
6 Replies, 176 Views

CONTEST! Win a copy of Worms W.M.D.!
Post by Variation-XBA
9 Replies, 343 Views

The Gears of War 4 Live Broadcast Airs Today
Post by Nato King
7 Replies, 212 Views

Post by Nato King
9 Replies, 261 Views

Spoiler: First 12mintues of Battlefield 1
Post by Nato King
9 Replies, 245 Views

Custom Xbox Addict Controller!
Post by Variation-XBA
8 Replies, 322 Views

© 2000-2016 - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics