Bonum Certa Men Certa

Microsoft's XBox Group Still Operates at a Loss, XBox Director Quits

Rusty ships
XBox is still hanging in there



Summary: More depressing news for XBox 360 as it swings back to losses and the strategy chief jumps ship

A LOT of people are being misled by Microsoft's PR, which makes it seem like XBox 360 is actually succeeding. In reality -- truth be told -- several years after the launch Microsoft is still losing money.

The loss comes after two consecutive quarters of profit for the division, which had long been notorious as an overall money-loser for Microsoft.


This is scarcely covered by the press, but more disturbingly, the usual fan sites were yapping about XBox results being great when the last report came out (with overall earnings down 32%). It was a lie. Here is more information:

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.


A year or so ago, Information Week revealed that Microsoft had lost about $7 billion in its XBox business alone. It seems to be one of the best-guarded secrets of Microsoft.

How can so much money be lost other than by selling units at a loss? Well, with an enormous failure rate (claimed to be around 67%), this whole business has become painful and almost suicidal. Even the editor of EDN has just published an article about those Red Rings of Death he has been getting on his XBox 360. It's not a resolved issue; it's a design flaw.

Back on Wednesday the 15th, I told you that my first-generation Xbox 360 game console had experienced the Red Ring of Death the prior Friday evening. I also shipped it off on the 15th, and the UPS tracking website reported that it was delivered to Microsoft's Mesquite, TX service facility at 10:15AM on the 21st.


Microsoft fired its more responsible employee for saying he truth about the failure rates. He was called a "whistleblower" rather than a knowledgeable person who wanted to mitigate the risk of death (XBox 360s are reportedly catching on fire sometimes).

The situation in XBox is so miserable that even its strategy chief has just quit Microsoft.

MICROSOFT’s Xbox strategy boss Richard Teversham has quit the firm to join arch rival Apple, MCV can reveal.


This is also covered in:



Speaking of an XBox director who departs, here is another XBox director who recently departed in anger. He's a film director though, not an executive director. We wrote about it some days ago and here's more information:



Other XBox employees had similarly bad experiences. Over the past 2 years, many key employees of the XBox group simply ditched the company. We have some examples here.

"If you can’t make it good, at least make it look good."

--Bill Gates, Microsoft

Comments

Recent Techrights' Posts

Professor Eben Moglen on How Social Control Media Metabolises Humans and Constrains Freedom of Thought
Nothing of value would be lost if all these data-harvesting giants (profiling people) vanished overnight
Debian Left Twitter (MElon "X"), We Think the Free Software Foundation (FSF) Should Do the Same
What would the FSF really lose if it stopped posting there?
Tons of Anti-Linux 'Articles' Published by Bots (LLMs), Maybe Microsoft's
Upon closer inspection, all this FUD turned out to be LLM garbage
Ubuntu Desktop Director of Engineering Has Only One Blog Post. It Promotes Microsoft Windows.
Remember that even 15 years ago (more or less, maybe 16 years ago) Canonical appointed a a 'former' Microsoft manager (Spencer) to lead Ubuntu on the desktop
 
Gemini Links 07/02/2025: Mid-level Details and Simple Code
Links for the day
Links 07/02/2025: US 'Demolition Crew', e-ID Loopholes, and Sanctions
Links for the day
Social Control Media is Narcissism
Nowadays there's a lot more literature and even press coverage explaining the harms of Social Control Media
statCounter Sees GNU/Linux Share Doubling in China Over the Past Year
It'll be interesting to see what data in the coming months shows
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, February 06, 2025
IRC logs for Thursday, February 06, 2025
Richard Stallman (RMS) Confirms Next Week's Talk in Europe
He gave at least 2 talks in Europe last month
Nationalism As A Service (NaaS) by Microsoft Azure, Gutting the US Government for Profit
Will Microsoft be receiving bailouts as a reward for all this?
Rumours of IBM Layoffs Apparently Confirmed Yesterday, IBM Canada Consulting Impacted (as Rumoured)
when IBM has layoffs we must also read it as Red Hat layoffs
Gemini Links 06/02/2025: Voicemail Sucks and Night of Lights
Links for the day
Links 06/02/2025: YouTube Takedowns Out of Control, 'DOGE' Breaking Laws
Links for the day
IBM Red Hat on "era of cloud computing", pushing "hey hi" (AI) hype in Microsoft Azure
LLM slop might actually be more benign than Microsoft promotion
Corruption and Rule-Breaking Prevail at the European Patent Office (EPO), Europe's Second-Largest Institution
The law does not really exist at the EPO; it can be perceived as merely a "recommendation"
statCounter: More Countries Where Windows is Around 1% "Market Share" (People Have Moved to Android/Linux)
in some nations Windows is already 1% or less
404 Media Says "Workers at NASA Told to Drop Everything to Scrub Mentions of Indigenous People, Women from Its Websites" But There's Also Accessibility in the Firing Line
In the case of abandoning accessibility, everyone stands to be hurt and proprietary software can be brought in to replace standards
When BetaNews Writes Real Articles About "Linux" They Promote Windows
The Web is in a bad state. We need to at least try to correct this.
Gemini Links 06/02/2025: Cynicism and "Real Magic on the C64"
Links for the day
Links 06/02/2025: New Sanctions, Layoffs, and Executive Orders
Links for the day
Distros and Desktop Environments, Devices
GNU/Linux focused
New Rumours of IBM Layoffs in 2025, IBM Consulting Still Struggles, Based on Management
"Hey hi" (AI) has been a common excuse for business failure
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, February 05, 2025
IRC logs for Wednesday, February 05, 2025
Links 05/02/2025: Kessler Syndrome and News Online
Links for the day
statCounter: Monaco Now 7% GNU/Linux ("Proper")
GNU/Linux, not counting Chromebooks, is on the rise
Many Parts of Google Lose Money
It's quite apparent that many parts of Google - even some that rely on ad revenue or push ads - aren't profiting
European Internet Forum (EIF) is Dominated by American Corporations and Microsoft Lobbyists, Staff Take the Lead
Should the officials over here or the European Parliament pay attention to these people?
Links 05/02/2025: Connection without Connectivity and Unionised Grocery Workers
Links for the day
Just Because People on Top of the Microsoft Pyramid Made a Lot of Money Doesn't Mean Microsoft is Wealthy
The bigger they are the harder they fall
Gemini Links 05/02/2025: Learning, Madman Ruling a Mad Country, Back in Geminispace
Links for the day
statCounter Shows "WIntel" Chasing a Dying Market
Microsoft acts as if it's running out of money
Free Software Foundation, Inc. (FSF) Still Raising Money, Richard Stallman Contributes
total exceeding $430k
A Lot of Stuff About "Linux" in Google News is LLM Slop, Fake 'Articles'
It seems to be getting worse
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, February 04, 2025
IRC logs for Tuesday, February 04, 2025