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  1. #1

    • Minion
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    Microsoft Xbox Division Loses $1.9 Billion

    http://biz.gamedaily.com/industry/feature/?id=16869

    Quote Originally Posted by Joystiq.com
    For Microsoft's fiscal year ending June 30 the division which includes the Xbox posted a $1.9 billion loss -- $1.2 billion of that was from the fourth quarter alone when Microsoft owned up to the Red Ring of Death issues. The division actually climbed 28% over the year and may even be profitable soon according to Microsoft entertainment division lead Robbie Bach, who sold millions in stock just as the Red Ring of Death warranty issue broke -- but, that's just a coincidence.
    Yikes! Microsoft had so many defective Xbox 360's, they ran out of boxes to ship them back!

  2. #2

    • Pilot EdForceOne
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    Re: Microsoft Xbox Division Loses $1.9 Billion

    why I know it would make you happy... that 'loss' includes a 1.06 BILLION *charge* for handling the warrenty issue. That means they are knocking themselves ON PAPER to handle that - not that they actually lost that money. That is money they expect to spend on handling the warranty extension.

    It's an accounting way of accounting for current and future spending on that topic. It's all about taxes. They take the charge NOW (notice it was Q4... helloooo MR TAXMAN) gain the benefits of a 'loss' tax-wise and don't take charges for it in the future quarters.

    Your quotes don't tell the full story at all.

    The division posted a 1.2 billion loss for the quarter, which includes a 1.06 billion charge for the warranty handling. That means sans that, the division only lost 1.4 million. The division only posted a 1.9 billion loss for the entire year.. which means the loss is 'on par' with the previous quarters.

    When TimeWarner posted 92 BILLION loss in 2002 - they didn't actually lose that much money - its all about how the books are worked.

    On the red ring topic though... I thought you might find this interesting. Found this in the store the other day.. the very display unit used to 'promote' the product.. had the red ring



    Probably just temporarily overheated and not fatal.. but who knows
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  3. #3

    • DLR -> WDW Cast Member
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    Re: Microsoft Xbox Division Loses $1.9 Billion

    Wal-Mart interactives are a BITCH to maintain, because of the close quarters and they are sitting on metal (retains heat), not to mention the lack of air ventilation... they fail all the time due to overheating and then eventually the cooking of the insides of the 360.

    What gets my goat is that some of my stores don't have people bright enough to turn the interactive off and keep it off if it's malfunctioning. It's the same way with the PS3 as well when it used to lock up all the time, even though Sony stated it was a feature of the interactive.
    Burnt Toast
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  4. #4

    • Mr. Faranheit
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    Re: Microsoft Xbox Division Loses $1.9 Billion

    Quote Originally Posted by Burnt Toast View Post
    What gets my goat is that some of my stores don't have people bright enough to turn the interactive off and keep it off if it's malfunctioning. It's the same way with the PS3 as well when it used to lock up all the time, even though Sony stated it was a feature of the interactive.

    From what I have read on the Playstation 3 boards, the firmware has a chance of turning the console into a brick. People have posted that they were on 5th and 6th replacements by bad firmware.
    Be controversial

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  5. #5

    • off in lala land
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    Re: Microsoft Xbox Division Loses $1.9 Billion

    Quote Originally Posted by flynnibus View Post
    why I know it would make you happy... that 'loss' includes a 1.06 BILLION *charge* for handling the warrenty issue. That means they are knocking themselves ON PAPER to handle that - not that they actually lost that money. That is money they expect to spend on handling the warranty extension.

    It's an accounting way of accounting for current and future spending on that topic. It's all about taxes. They take the charge NOW (notice it was Q4... helloooo MR TAXMAN) gain the benefits of a 'loss' tax-wise and don't take charges for it in the future quarters.

    Your quotes don't tell the full story at all.

    The division posted a 1.2 billion loss for the quarter, which includes a 1.06 billion charge for the warranty handling. That means sans that, the division only lost 1.4 million. The division only posted a 1.9 billion loss for the entire year.. which means the loss is 'on par' with the previous quarters.

    When TimeWarner posted 92 BILLION loss in 2002 - they didn't actually lose that much money - its all about how the books are worked.
    It's all about the books... bottom line is always $$$$
    ...it's been a long time.

  6. #6

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    Re: Microsoft Xbox Division Loses $1.9 Billion

    Firmware bricking. Yup. Just like consoles that brick for just playing Forza Motorsport 2, Crackdown, Guitar Hero 2, Madden '07, Shadowrun, the Halo 3 beta, Viva Pinata, Gears of War... and so on. Pretty much any popular game on the 360 WILL BRICK YOUR CONSOLE!

    If I believed half the stuff that is posted on the boards (especially the PS3 boards where people get off to the sound of Kaz Hirai or Phil Harrison's voice) then I'd be constantly afraid of turning my system on, let alone play anything on it.

    ... but I like playing with fire! I play with my launch system console all the time with zero problems. So does the 20 or so odd friends that bought launch consoles as well, each with zero problems. That doesn't even include the friends that bought consoles later in the life cycle.

    Yes, there are issues with overheating and general hardware failures (three ring, could be anything inside of the console... not just one specific thing)... but a 33% failure rate? It makes me wonder how many of these problems are user error... because we all know that it can NEVER be the user. Oh hell no, no one ever suspects the user the sets their console horizontally on carpet or sets it on something hot like a DVR or a stereo or what not.

    At 33% or even 50% like some of the PS3 fanboys are stating... that would mean that statistically at least a few of my friends should have had problems with their consoles. The fact that none of has means that we should start playing the lottery or that we really take care of our systems.

    I do talk to people all the time that have had multiple consoles fail on them... most of the time I'll go through the different scenarios and they've done one or more then them... most common is the setting the console on carpet or having the Intercooler attached. They act all surprised when I tell them that both of those are very bad things.

    It's just another one of those cases were people who are happy never say anything... or make a big deal out of it. Those who are upset, over whatever reason, will make a big fuss and try to draw attention to themselves. Just like on MiceChat, the negative talk about Disney or the Parks or whatever always almost outweigh the good stuff about them.

    -----

    On another note... you would think after seeing all those PS3 interactives freeze up during the Motorstorm demo at retailers... you would think that the PS3 owners would stay away from Motorstorm in droves even though it was just the problem with the demo itself (which they never bothered to even fix until just recently, even after the news of locked up interactives blew up in their faces).

    Oh yah, by the way... did you know that Motorstorm sold over ONE MILLION COPIES? Oh my god. Yes, Sony is very proud of themselves over that little fact... in fact, they keep bringing it up at E3 and in almost every sound/newsbyte. Could make a drinking game out of it... that would be fun.
    Last edited by Burnt Toast; 07-23-2007 at 12:18 PM.
    Burnt Toast
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  7. #7

    • Pilot EdForceOne
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    Re: Microsoft Xbox Division Loses $1.9 Billion

    That was only the second 360 I've actually seen red ring. The first was only temporary as we were running our 360 in the office in an enclosed cubby in our monitor stand. Simply letting it cool down and moving it 'fixed it'. I assume the 360 at wal-mart was also just temporarily overheated. Those cabinets w/lights I'm sure get toasty.

    The enclosed PS3 lexan bubble they have the interactive at the toys r us here sounds like a 747.. must be proactive cooling I guess

    My Wii gets VERY warm if I run it next to my stereo.. as its getting fed warm air from the stereo's air exhaust. But if I move it 10" away, it's fine.

    And I agree Burnt T... the 'percentages' are very exaggerated. Within my circle of friends and co-workers.. we have yet to have a failure. But I'm very glad MS is taking it for the customers and pushing to a 3yr warrenty. That is the class thing to do.

    Any technology can have f-ups.. what makes or breaks you is how you service the customers. MS has learned their lesson hopefully, and will treat these future warranty requests much better then they did for the early guys.
    Check out my blog - Coreplex: Rambling from inside the Grid


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    Quote Originally Posted by sleepyjeff View Post
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  8. #8

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    Re: Microsoft Xbox Division Loses $1.9 Billion

    I'd still say the 360 has had more problems than any other console. You could say that's because the 360 has been out the longest, but even at the begininng, it was scratching discs and whatnot. The fact that microsoft ran out of boxes to ship replacements says enough.

    But kudos to Microsoft for actually admitting a problem. That's a rarity for any company.

  9. #9

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    Re: Microsoft Xbox Division Loses $1.9 Billion

    My launch 360 has been flawless (knock on wood). Actually, I've only had trouble with one video gaming system and that was my launch Sega CD that needed a new plastic channel for the laser. I guess it wore out because of all those hours I spent playing those Working Designs RPGs!

  10. #10

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    Re: Microsoft Xbox Division Loses $1.9 Billion

    My 360 hasn't broke yet, but I know its coming. My friends 360's are breaking and I know I'm next. I just hope it does not break around when Halo 3 comes out. That would suck.
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