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

10 Easy Steps to Follow for Digital Sovereignty in Nations That Distrust GAFAM et al
When "enough is enough"
Dr. Andy Farnell Explains Why Slop Companies Like Anthropic and Microsoft 'Open' 'AI' Basically Plunder and Rob People
This article was published last night at around 10
 
Salvadorans' Usage of GNU/Linux Measured at Record Levels
All-time high
Links 22/01/2026: Ubisoft Layoffs Disguised as "RTO", US "Congress Wants To Hand Your Parenting To GAFAM", Americans' Image Tarnished Among Canadians (Now Planning to "Repel US Invasion")
Links for the day
No, the Problem at IBM/Red Hat Isn't Diversity
Microsoft Lunduke also openly shows his admiration for Pedo Cheeto
Do Not Link to Linuxiac Anymore, Linuxiac Became a Slopfarm
now Linuxiac is slop
Richard Stallman (RMS) at Georgia Tech Tomorrow
After the talk we'll write a lot about "cancel culture" and online mobs fostered and emboldened in social control media
Software Patents by Any Other Name
There is no such thing as "AI" patents
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, January 21, 2026
IRC logs for Wednesday, January 21, 2026
The "Alicante Mafia" - Part VIII - Salary Cuts to Staff, 100,000 Euros to Managers Busted Using Cocaine (for Doing Absolutely Nothing, Just Pretending to be "Sick")
Today we look at slides from the union
Gemini Links 22/01/2026: Forest Monk, Aurora Observation, and Arduino Officially Launches the More Powerful Arduino UNO Q 4GB Single-Board Computer
Links for the day
Next Week is Close Enough for Wall Street Storytelling About 'Efficiency' by Layoffs for "AI"
This coming week GAFAM and others will tell some creative tales about how "AI" something something...
Google News Still a Feeder of Slop About "Linux", Which Became Rarer in 2026
Our main concern these days is what happened to Linuxiac. Bobby Borisov became a chatbots addict.
Links 21/01/2026: "Snap Settles Lawsuit on Social Media Addiction" and Attempts in the US to Revive Software Patents
Links for the day
Links 21/01/2026: Microsoft 'Open' 'Hey Hi' in More Trouble, US Has "Brown Shirts" Problem
Links for the day
Yesterday Afternoon The Register MS Published Paid Microsoft SPAM Disguised as an Article About "AI PCs"
The Register MS cannot help itself, can it? [...] Follow the money.
Microsoft's XBox is in Effect Dead Already, Now It's a Streaming and Advertising Platform
Expect many layoffs soon
Richard Stallman's Talk at Georgia Tech is Just 2 Days Away
We're still curious to see how malicious people (or trolls) in social control media will try to slant his talk as "bad"
EPO's Web Site Misused for Propaganda About Illegal Kangaroo Courts to Distract From EPO Scandals and Judicial Crisis in Europe
UPC is illegal and unconstitutional
The "Alicante Mafia" - Part VII - The Industrial Actions Began Yesterday, Here's Why
The "Alicante Mafia" might not last much longer
Gemini Links 21/01/2026: Edible Circuits and "Sayonara HTTP"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, January 20, 2026
IRC logs for Tuesday, January 20, 2026
IBM Hides Its Own Destruction (and Red Hat's)
It's like scenes out of '1984', which is what a now-famous advertisement from Apple compared IBM to
LLM Slop Not Dead Yet, Examples of Slop About "Linux"
We wish to see the totals down to zero
Links 20/01/2026: Cheeto Blackmails France Into 'Peace' While Looking to Annex EU, Mass Layoffs in Capgemini (Microsoft Reseller/Promoter) in France
Links for the day
Gemini Links 20/01/2026: Boxing and "Inbox Zero" Success
Links for the day
Windows and Slop Declining While Microsoft Silences Critics
Microsoft tries to suppress facts while faking 'demand' by imposing slop on everybody, everywhere
openai.com Traffic Said to Have Fallen 50% in the Past Three Months, Reports Say It Nearly Ran Out of Money to Borrow
After the slop frenzy all we'll have left is environmental destruction
IBM Kills OzLabs, Signalling An Attack on Free Software (a Sign for Red Hat)
ibiblio also appears to have died (or experiences critical issues)
Red Hat Vice President Leaving After Nearly Two Decades
IBM's culture of secrecy is not compatible with Free software
Links 20/01/2026: "ChatGPT Health" (Latest Distraction From Being Insolvent) Flops and Raises Concerns, "The U.S. Military Faces a Reckoning on Greenland"
Links for the day
Rudeness and Vulgarity Won't Stop Journalism About Free Software
we seem to be on the right path
Readers Pleased With Layout Changes
Two days ago we began improving clarity and accessibility in the site
IBM Plans for Layoffs Becoming Clearer With "Employee Reviews"
Of course this impacts Red Hat as well
IBM is Outsourcing Red Hat's Fedora to Slop to 'Save Money'
If IBM cared about quality rather than alleged "cost savings" (cutting corners), it would assign more IBM staff to Fedora, but instead the exact opposite happened, with the likes of Cotton and Miller removed from the project
European Patent Office (EPO) Industrial Actions Formally Start in Two Hours
As per the latest (revised) action plan, today workers will slow down their work and limit patent grants
Microsoft Under Fresh Investigation by the Italian Competition Authority
In 2025 we kept a running tally of 30,000+ Microsoft layoffs, so 40k this year would not be unthinkable
The "Alicante Mafia" - Part VI - More Strikes Planned at the EPO, Starting This Month
Yesterday we said that friends of Berenguer or inside Berenguer's circle may have left
Gemini Links 20/01/2026: New Tea, Using a Roku at a Hotel, and "Voltage-Based Power Management for Any Raspberry Pi"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, January 19, 2026
IRC logs for Monday, January 19, 2026