MS Still Spinning

spider spinning

N’Gai Croal asks Peter Moore about the recent warranty extension.

I won’t quote any of the specific details he gets into – except the parting shot:

Real quick: are you still going to be profitable for the next fiscal year?
Yes. sir. Yes indeed. Absolutely.

Yes, Microsoft will indeed be profitable.

Xbox division? Not a fucking chance in hell.


2 responses to “MS Still Spinning”

  1. no reason why it couldn’t be profitable, considering the increased cost vs. profit on the elite box and the eventuality of the 65nm die upgrades. The only thing that could stop it would be the cost of replacing broken boxes, but they have already set aside over 1 billion towards that this year - shouldn’t hit next year’s books.

  2. I hear what you are saying re: the FY 2007 charge on repairs and good sales of the Elites - but they have just downgraded their sales forecast for the year on 360s again.

    Unless they are making quite a bit of profit on each 360 sold at this point, I have a hard time seeing it. They’ve only ever reported 1 quarter that wasn’t in the red ever (Halo 2 launch).

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