EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

05.03.09

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

Posted in Finance, Hardware, Microsoft at 4:22 am by Dr. Roy Schestowitz

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

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

3 Comments

  1. Peter2 said,

    May 3, 2009 at 12:08 pm

    Gravatar

    It seems that Microsoft made a profit on their entertainment division for about 5 out of the last 6 quarters.
    Still making a loss therefore is a contrived statement as your blog has failed to report any of the profitmaking quarters.

    Roy Schestowitz Reply:

    Those quarters were far from making up for the billions already lost.

  2. Jose_X said,

    May 3, 2009 at 1:16 pm

    Gravatar

    I think Microsoft took a massive writedown on their xbox unit not long ago. I would be shocked if they could not pull out a profit in a few quarters following that massive loss.

    To date, how far is the red box business in the red?

    Does their entertainment division include profitable hardware and/or high profit margin PC software?

What Else is New


  1. Links 3/5/2016: Mozilla Firefox 46.0.1, More Jolla Funding

    Links for the day



  2. New Paper About the UPC Explains Why It is Bad for Small- and Medium-sized European Businesses

    A detailed academic analysis of the Unitary (or Unified) Patent Court reveals/concludes/asserts that it is being marketed or promoted using a misleading premise and promise



  3. [ES] Gobiernos en Europa Todavía Activos en Contra de la Gerencia de la EPO

    Todavía hay trabajo político que está siendo hecho — aunque discretamente — contra Battistelli y sus chácales en la alta gerencia de la Oficina Europea de Patentes



  4. Links 3/5/2016: International Day Against DRM, 25th Anniversary of Linux (Kernel) Near

    Links for the day



  5. Interesting Supreme Court Cases About Patents in the United States

    A quick review of some of the latest developments regarding SCOTUS (the US Supreme Court) as far as patents go



  6. Governments in Europe Still Active Against EPO Management

    There is still political work being done -- albeit rather discreetly -- against Battistelli and his goons at the European Patent Office's top-level management



  7. The European Spam Office (EPO)

    EPO budget at 'work', days after doing copy-paste jobs and also working overtime in the weekend for an extravagant and needless/purposeless event (except for Battistelli's own pride)



  8. Not Just Benoît Battistelli and Willy Minnoye (EPO): Željko Topić Too Thinks He is Above the Law, Avoids the Judges and Courts

    The latest developments regarding some of the criminal complaints and civil lawsuits against Topić, who is now a Vice-President at the European Patent Office (EPO)



  9. Nefarious Forces for Patent Abuse and Software Patents in the United States, Australia, India, Korea, and Europe

    A roundup of news from the weekend and today, with emphasis on the elements inside the system (or the media) which push for regressive policies that benefit them financially at the expense of everybody else



  10. [ES] El Sistema de Patentes de los EE.UU: Donde Uno Desperdicia Años en Corte y Gasta $8,000,000 en Honorarios de Abogados Peleándo una Patente Falsa

    un sumario de noticias acerca de las patentes de software en los EE.UU. Y ha lo que han llevado, debido en gran manera al decline en calidad de las patentes por parte de la USPTO (dejando que otros se las arreglen limpiando el desórden)



  11. [ES] La Oficina Europea de Patentes Todavía Sigilósamente Abusiva, Pagará $15,000 en Compensasió a Trabajadora Tras un Tardío Fallo de la ILO

    La Organización Internacional del Trabajo (ILO) emite un fallo en un caso de abuso de la EPO y nota “la excesiva duración de los procedimienteos internos de apelación.”



  12. Links 2/5/2016: Linux 4.6 RC6, DragonBox Pyra

    Links for the day



  13. Links 1/5/2016: Wine 1.9.9, Devuan Jessie 1.0 Beta

    Links for the day



  14. The US Patent System: Where One Wastes Years in Court and Spends $8,000,000 in Lawyers' Fees Fighting a Bogus Patent

    A roundup of news about software patents in the US and what they have led to, owing in part to the USPTO's declining patent quality (leaving others to clean up its mess)



  15. The European Patent Office Still Silently Abusive, Will Pay $15,000 in Compensation to Female Worker After Belated ILO Judgment

    The International Labour Organisation (ILO) issues a judgment on a case of abuse by the EPO and notes "excessive length of the internal appeal proceedings."



  16. [ES] Alice Continúa Quebrando Patentes de Software Asi Que los Abogados de Patentes, Cabilderos de los Monopolistas, Etc. Ahora Atacan a la Corte Suprema por Hacer Esto

    los cabilderos Corpórativos y abogados de patentes están tratándo de poner a Alicia en la tumba, por su impacto en las patentes de software que es muy profundo y así hasta ahora casi indetenible



  17. [ES] ¿Cómo Salvar la Reputación de la EPO?: Crear Más Jurados de Apelaciónes en Europa y Abolir la Malgíada/Malintencionada Fantasía de la UPC

    Una crítica evaluación de lo que ocurre en la Oficina Europea de Patentes (EPO), la que rápidamente se está yendo para abajo (y degradando sobre todo) a el nivel de los sistemas Chinos, en conjuntamente con corrupción, los abusos, y la bajísima calidad de las patentes



  18. [ES] La Corte de Apelaciónes del Circuito Federal (CAFC) Acaba de Ponerse a Favor de los Trolles de Patentes

    la tristémente célebre CAFC, que manifestó las patentes de software en los EE.UU, acaba de dar un regalo a los trolles de patentes quienes típicamente usan las patentes de software para extorsión enc complicidad con los jueces del Este de Texas



  19. [ES] Análisis de los Últimos Datos de Lex Machina Acerca de la Litigación de Patentes Muestra Como está Declinándo

    el Professor Mark Lemley de Lex Machina resalta las tendencias en litigation al colectar y analizar datos relacionados con patente y concerniéntes a monopolios intelectuales en general; actualmente muestra una sequía de litigaciones (muestran que ha disminuído)



  20. [ES] La India Está Teniendo Otra Prueba de los Peligros de las Patentes Occidentales, Debe Aprender a Rechazar Completamente las Patentes de Software en Medio de Gran Presión

    El gigante de software que es la India continua enfrentándos ea la cruel y agresivo cabildeo de Occidente, haciéndo que este controle a la India por patentes que no deberían de existir en primer lugar



  21. [ES] Microsoft Dice que Continuará Extorsiónando a Compañías Que Distribuyan Linux, Usando Patentes de Software Usuallmente

    La guerra de Microsoft contra Linux, una guerra que es peleada usando patentes de software patents (por ganancias y/o por chantáje con arreglos empaquetados), todavía continúa a pesar de todas las tácticas de relaciónes públicas de Microsoft y sus sócios



  22. Alice Continues to Smash Software Patents So Patent Lawyers, Monopolists' Lobbyists Etc. Now Attack the Supreme Court for Doing This

    Corporate lobbyists and patent lawyers are trying to put Alice in the grave, for its impact on software patents is very profound and thus far almost unstoppable



  23. How to Salvage the EPO's Reputation: Create More Boards of Appeal in Europe and Abolish the Misguided UPC Fantasy

    A critical evaluation of what goes on at the European Patent Office (EPO), which is quickly descending down (and overall degrading) to the level of Chinese systems, along with the corruption, the abuses, and the low quality of patents



  24. Court of Appeals for the Federal Circuit (CAFC) Has Just Sided With Patent Trolls

    The notorious CAFC, which manifested software patents in the United States, has just given a gift to patent trolls that typically use software patents for extortion down in Texas



  25. Analyses of the Latest Data From Lex Machina About Patent Litigation Show Some Litigation Declines

    Professor Mark Lemley's Lex Machina highlights litigation trends by collecting and analysing data related to patents and pertaining to intellectual monopolies in general; now it shows litigation droughts



  26. India is Having Another Taste of the Dangers of Western Patents, Must Learn to Reject Software Patents in the Face of Great Pressure

    The growing software giant which is India continues to face cruel and aggressive lobbying from the West, enabling the West to control India by patents that should not exist in the first place



  27. Links 29/4/2016: GNOME 3.21.1, Fairphone

    Links for the day



  28. Microsoft Says It Will Continue to Extort Companies That Distribute Linux, Using Software Patents As Usual

    Microsoft's war on Linux, a war which is waged using software patents (for revenue and/or for coercion in bundling deals), is still going on in spite of all the PR tactics from Microsoft and its paid partners



  29. Australia Might be Next to Block Software Patents If Commission's Advice is Followed

    Australian advice against software patents, which can hopefully influence Australian politicians and put an end, once and for all, to all software patents in Australia



  30. [ES] ''Si la Forma de Pensar de la EPO fuese Seguida, Guantánamo Sería Posible en Suelo Alemán.”

    La EPO está todavía bajo fuego, pero mucho de ello pasa detrás de las cortinas y envuelve abogados y/o burócratas


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts