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Sunday, January 01, 2006

Xbox 360 to be profitable by 2006

Xbox 360 to be profitable by 2006

"Microsoft is predicting the XBox 360 to start becoming profitable by July 2006.

Everyone knows that Microsoft has been losing a pretty penny on it's recent release of XBox 360 consoles. With a worldwide release this past holiday season, Microsoft has been losing money with every console sold instead of making it. But things are looking to change for the mega company.

In a report done by independent analysts, Directions On Microsoft, "Microsoft executives have promised that the Xbox business would become profitable by FY'07, which begins in July 2006." The strange part about this is that their predicted date of July 2006 falls around the time of the release of Sony's PS3 and Nintendo's Revolution.

"Getting to profitability will require a big-name software launch while withstanding a concentrated marketing blitz from Sony. Anything less could mean years of red ink ahead," said lead analyst Matt Rosoff. With roughly two million XBox Live subscribers right now, Microsoft still has the lead in the online arena. But without a strong foot hold in the Japanese market, Nintendo and Sony will dominate Microsoft over seas. Here's to hoping Microsoft still has an ace or two up it's sleeve." [link]

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