Microsoft Still Losing Money On Xbox 360

Xbox 360 Console Includes 20GB Hard DriveMicrosoft reported that the last quarter of 2006 was a boom time for their games division, in large part thanks to the success of the Xbox 360, but they’re still losing money. The entertainment and devices division raked in $2.94 billion (yes that is a “b”) during the last three months of the year, which represents a 76% increase over the same time period in 2005.

With all that glorious green streaming in, they still managed to lose $286 million when all was said and done. No wonder they make you pay for your own box and shipping when your 360 breaks.

Microsoft indicated that sales of the new-gen console – to the tune of 4.4 million shipped – helped hunt down an extra $1 billion in revenue. Costs to operate the gaming division still outweigh the money coming in.

To lose $286,000,000 and still have the stomach to keep trying? That sounds a little bit insane. But the future benefit for this “small” amount of money lost could mean bringing in more money for the future.

Xbox 360

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