MS: 2008 will be Xbox's first profitable year

[Shrygue]

via Computer and Video Games


In 2008 Xbox will enjoy its first year as a profitable business, Microsoft's E&DD boss Robbie Bach has told the San Jose Mercury News.

"That's the first time we've been able to say that," Bach told the newspaper. "That's total Xbox business - service, software and hardware."

The Xbox biz has famously operated in the red in order to spearhead Microsoft into the console business, but Bach's statement comes after Xbox's first ever pair of profitable quarters.

It's got a head start in achieving the year goal then, which is probably partly thanks to a certain game with a 'IV' at the end.

"Recognize that for us, the fact that 'Grand Theft Auto' was a positive event for us is an amazing statement. Because if you think back to last generation, anything associated with 'Grand Theft Auto' was bad and was PlayStation," said Bach.

"And so the idea that we've been able to build an ecosystem and an experience that attracts people who have never thought of being on our platform before is a pretty powerful statement."

Yes it's got GTA, and Xbox is finally making money, but is that enough to stop PS3 steamrolling ahead in Europe? We'll have to wait and see...

[Eviltaco64]

lol the point of a game console should be to make the company money not put them in the red

[Baboon]

With their poor history with the rrod and all that they must have spent to fix the issues I find it quite impresssive that they are now actualy making a profit on the 360.

If only they didn't screw up so royally in the first place with their poorly designed machines then they would have been truly kicking the PS3's (which has so far been a very disapoting machine) arse now!

[trugamer]

@Eviltaco64
The way they make money is from the games, they lose money on every console sold but eventually make it back. So in the end they make a long term profit, but a loss in the short term.

[Darksaviour69]

i would guess its the high software to console ratio the xbox 360 has that helped them get a profit sooner

[JKKDARK]

Yes, new amazing games will appear, like the RPG's by Square-Enix