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Re: [News] Ballmer on Xbox 360 Losses

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__/ [ Jim Richardson ] on Friday 05 May 2006 04:26 \__

> On Fri, 05 May 2006 03:52:25 +0100,
>  Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> wrote:
>> __/ [ Jim Richardson ] on Friday 05 May 2006 01:07 \__
>>> On Thu, 04 May 2006 18:31:58 +0100,
>>>  Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> wrote:
>>>> Ballmer confident Xbox 360 losses will turn around
>>>> ,----[ Quote ]
>>>>| SHY AND RETIRING number two at Microsoft, Steve 'sounds of silence'
>>>>| Ballmer, has sent a quiet email to staff saying that he expects that
>>>>| all that cash lost so far on the Xbox360 will become profit one day.
>>>>| [...]
>>>>| Ballmer humbly admitted that the cost of producing Xbox 360 consoles
>>>>| was a wee bit higher than expected.
>>>> `----
>>>> http://www.theinquirer.net/?article=31463
>>> maybe they forgot to amortise in the cost of replacing chairs in
>>> Ballmer's office so often?
>> - From what I hear, the XBox 360 had some serious overheating problems
>> too. Does that explain why Ballmer sweats so much?
>> Roy
> yeah, having the product catch fire occasionally probably has a negative
> effect on profitability.

They are more careful when it comes to the Origami Ultra-Mobile PC (UMPC),
which is manufactured by Samsung and was found to have a serious flaw
(something mechanical I can only suspect, but they called it a "bug"). It
led a a delay just days/weeks (I say this with doubt) before hitting the
shelves. Many dissappointed people who made prior orders... should have
learned a lesson from the Xbox 360.

Also see:


,----[ Quote ]
|     Microsoft has launched its Xbox 360 games console in Japan to what
| seems like a more subdued response than it received in Europe and
| North America.
|     [...]
|     Sales of the first Microsoft Xbox in Japan have always lagged behind
| Sony PlayStation 2, which was launched two years before it. 

Probably more of a patriotic act, but perhaps the Japanese understand
technology better and could foresee the trouble. I don't know about South
Korea where Samsung are based...

Meanwhile, despite evident success, Microsoft can only discurage purchases of
the Nokia 770 by urging the Seattle Times to write unfavourable N770 reviews
(as they did).

Best wishes,


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