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[News] [Rival] XBox Still Operating at a Loss After Over $5 Billion in Losses

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Microsoft's Xbox Group Loses $31M in Second Quarter


Biggest News of the Week: Microsoft Xbox 360 Division loses $31 million

,----[ Quote ]
| The news was similarly scattered for Microsoft's Entertainment and Devices 
| division, which includes the Xbox 360 business. Total revenues for the gaming 
| segment were down less than 2 percent to $1.57 billion, and where the 
| division posted an operating profit of $106 million during last year's second 
| quarter, this year it ran a $31 million loss.     


About $7 billion in losses for XBox [**]?


Dear Microsoft, Fix Digital Rights Issues on Xbox 360

,----[ Quote ]
| Because the DRM used on the Xbox 360 is based off of the hardware ID the
| content was downloaded on and one's Gamertag, I now must be online for your
| server to authenticate me, and unlock my content. In essence, all my DLC is
| being held hostage until I get online, get a new unit, or both.
| Why? I am so glad you asked. After swapping my Elite hard drive to a 360 that
| does work, two of my Gamertags have become corrupted, seemingly in a blink of
| an eye. The hardware that the DRM is tied to cannot even play the games
| needed to use said DLC, and the Gamertags that my content is tied to are
| corrupt. A third Gamertag on the same hard drive, which has purchased
| nothing, is perfectly usable.



[**] Microsoft Needs Its Mojo Back

,----[ Quote ]
| Somewhere in the Silicon Valley, there's a Doctor Evil holding a test tube
| full of Microsoft Mojo. Unlike the golden age of the 1990s, Microsoft isn't
| generating excitement anymore. Sure, people still care what Microsoft does,
| but lately it's more like the industry knows the company is headed for a fall
| and is just rubbernecking to see the inevitable result.
| Problems are arriving on all fronts. Vista uptake in the enterprise just
| isn't happening; it's likely that many Vista licenses sold there are being
| downgraded to XP. Microsoft's plan to combine search forces with Yahoo hardly
| matters; at this point the both of them are plummeting against Google, which
| has nearly 70% share. The Zune music player is a minor nuisance to Apple's
| iPod. Sony just announced price cuts that are likely to push Microsoft into
| another round of XBox cuts, just as they were starting to eke out a profit.
| (Microsoft has lost about $7 billion on XBox since 2002.)
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