Will Microsoft Lose $4 Billion On Xbox 360?

"At 60,000 employees and $40 billion in revenues, the company isn’t as nimble as it once was, and newer products are not yet earning the company much money. The Xbox division in particular has lost Microsoft $4 billion in four years.

This next time around, the Xbox 360 campaign appears to have a larger budget. Recently, Microsoft unveil large buildings serving the purpose of 'gaming lounges' that allow gamers to play games before they are released. Like their own private CES, TGS, or E3 shows.

Also, let's not forget the gigantic prize competition to help promote the Xbox 360's launch in America later this year, in which almost 10,000 Xbox 360 consoles will be given away to Mountain Dew and other Pepsi-related soda drinkers.

With the loses Microsoft is taking for Xbox 360, after losing $4 billion on the original Xbox, losing another $4 billion or more means that Microsoft does not expect to make a profit with this next generation cycle either."