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

Site Statistics

Registered Members: 49,861
Forum Posts: 725,921
Xbox One Titles: 3,024
Xbox 360 Titles: 1,086
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 586
Original Xbox Titles: 987
Staff Reviews: 2,068
Member Reviews: 10,339
News Articles: 15,706
Screenshots: 34,368
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News








See News Archives

Community Forum Activity

Watch Dogs: Legion
Post by Nato King
0 Replies, 15822 Views

Xbox Series X or S
Post by Nato King
5 Replies, 18230 Views

Spellbreak Grand Magus Pack (3) and Starter Pack (7) Giveaway!
Post by Variation-XBA
0 Replies, 14743 Views

I pay $ 1000! I search the Element 54 Canadian launch Team signaturen Faceplate
Post by Smill
0 Replies, 14040 Views

Xbox one no signal
Post by debrartin
0 Replies, 38849 Views

do you remember?
Post by SnoochyBoochy
3 Replies, 40452 Views

i haz xbox
Post by SnoochyBoochy
0 Replies, 35557 Views

Claiming the first thread of 2020
Post by Kraft
7 Replies, 62179 Views

Important! I pay $ 1000! I search the Sweden launch and the Element 54 Faceplate
Post by Smill
3 Replies, 25089 Views

Squad Up
Post by samslophead
0 Replies, 62518 Views

TERA Skinned Xbox One X Giveaway!
Post by Variation-XBA
0 Replies, 54586 Views

Starfield Release expectations?
Post by DJ tx
4 Replies, 101170 Views

Issue with Xbox live on Xbox home
Post by rcmpayne
0 Replies, 71989 Views

Happy Birthday, Me.
Post by SnoochyBoochy
4 Replies, 87549 Views

Xbox Playdates Canada October, 2018 Play date info thread.
Post by Kiesey
2 Replies, 20487 Views

© 2000-2021 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