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

You Need Not Be a Big Company to Defeat Microsoft If You Can Successfully Challenge Its Core "Ideas"
Maybe that's just a sign that the ideas of RMS have become too effective and thus "dangerous"
Links 10/05/2025: Germany Considers Smartphone Ban in Schools, Right to Repair Bills
Links for the day
 
Links 11/05/2025: China's Fentanylware (TikTok) Tells Kids to Vandalise Schools' Chromebooks and Increased Censorship in India
Links for the day
Gemini Links 11/05/2025: Yeeting Oligarch Tech, Offline Browsing
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 10, 2025
IRC logs for Saturday, May 10, 2025
One is Simply Doomed to Fail When Working for Violent Men From Microsoft and Attacking Women as Well as People Who Merely Expose Crimes or Report Real Crimes
Imagine saying to people that you "practice law" or "exercise law"
The Tariffs Are Accelerating Microsoft's Decline in China
Judging by the way things are going, there will be considerable adoption of GNU/Linux in years to come, China being one major contributing factor.
Control Your Systems, Control All Your Data
what does it take for us to control our own systems and data?
Misplacing Blame for Security Problems, Sometimes With LLM Slop That Blames "Linux" for Microsoft's Failures
Broken telephones and stochastic parrots beget plenty of Fear, Uncertainty, Doubt (FUD)
Links 10/05/2025: WW2 Revisionism, Further Tit-for-tat in India-Pakistan Conflict
Links for the day
Gemini Links 10/05/2025: Git Server and Great LLM DDoS of 2025
Links for the day
Blizzard/Microsoft Unions Grow Ahead of Mass Layoffs at Microsoft, Apparently Starting Next Week (as Many as 30,000 Workers Laid Off by Year's End)
Microsoft already fired about 5,000-6,000 workers this year by our estimates; that's not counting resignations compelled through pressure (i.e. pushed, did not jump) and contractors
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 09, 2025
IRC logs for Friday, May 09, 2025
"Victory Day" - Part II: Abject Defeat to Hypocrites and Objectionable People Who Strangle Women Whilst on Microsoft's Payroll
Someone is going to have to pay for this; it won't be us
Rust Propaganda Now Amplified by Slopfarms Powered by Microsoft LLMs, Encouraging the Outsourcing of GNU/Linux Distros to Microsoft/GitHub/NSA (and a Shift Away From GPL/Copyleft)
Moving to Microsoft GitHub and adopting unfinished, untested code for highly critical bits
Links 09/05/2025: Inflation Rising and Rights to Protest Curtailed Some More
Links for the day
Gemini Links 09/05/2025: Good and Evil, LLMs Made the Web Worse Yet Again
Links for the day
IBM is Rotting With "Zero Internal Jobs" and Many PIPs (Performance Improvement Plans) on the Way, Typically a Fast Track Towards Layoffs Without Severance
At risk of giving air(time) to tribal sentiments, the internal joke at IBM is that to IBM "AI" stands for "All Indian"
European Patent Office (EPO) Faked "Revenue Expansion" by Granting Loads of Invalid, Illegal Patents; Staff Still Wants to Know Where That Money Went
Only about 30% of the EPO's patents are for EU entities/people
The Gerstnerisation of Microsoft: Seventh Wave of Microsoft Layoffs (Over 20,000 to be Cut) Allegedly Going to Start Shortly, Probably Start of Next Week, Microsoft Spreads Chaff and Noise Before the Big Axes Fall
we might be looking at about 50,000 people that Microsoft gets rid of this year
Links 09/05/2025: TeleMessage Blunder, More Distractions From Impending Mass Layoffs at Microsoft
Links for the day
GNU (and the FSF) Still Changing the World
Today, in 2025, GNU powers almost everything
Military-Grade Anti-Linux Microsoft Propaganda Using Microsoft LLMs in Fake 'News' Sites (Slopfarms)
This is part of a pattern
Links 09/05/2025: Analog Computer and First time at FOSDEM
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 08, 2025
IRC logs for Thursday, May 08, 2025