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

At Least 23 Days of EPO Strikes
Why does the media not deem this newsworthy?
 
IBM Agrees With Microsoft That Slop is Just for "Entertainment" and "at Your Own Risk"
So what can IBM sell now?
Microsoft Windows "Market Share" in USA Down to 40% According to Government Sites or 31% Overall
The world is changing, so do Americans
SLAPP Censorship - Part 45 Out of 200: Garrett and Graveley Cases Inherently the Same, Their Legal Team Can Barely Even Distinguish (Full Timeline)
"million-dollar men"
Gemini Links 13/04/2026: Pronouns for an LLM, Fakecoins Promotion Piggybacking Iran, "Your Face is Now a Search Query"
Links for the day
Links 13/04/2026: Higher Costs Hurt Both Rich and Poor Country, a "Landslide Win to Oust Orban"
Links for the day
Tens of Thousands of Days of Strike at Europe's Second-Largest Institution, Nobody in the Media Has Mentioned It
Since the "extraordinary general meeting"
SPAM That Mentions "AI" 16 Times (in "Security" Clothing, But Selling Back Doors), a Paid Placement in The Register MS
This will doom the reputation of the publication, The Register MS
Links 13/04/2026: Impersonating ProPublica Reporter, More Attacks on the Press (Occupation With Little and No Compensation, Only High Risk)
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, April 12, 2026
IRC logs for Sunday, April 12, 2026
Gemini Links 13/04/2026: Freiburg, GUIX, and Announcing Satellite Antenna (SA)
Links for the day
Links 12/04/2026: Climate, Conflict, and Change in Hungaristan
Links for the day
Gemini Links 12/04/2026: Passports, Science, and Lateral Thinking with Withered Technology
Links for the day
The Energy Crisis Will Likely Carry on and Kill the Slop Industry
To the slop charlatans, "this is the end, my friend..."
SLAPP Censorship - Part 44 Out of 200: Garrett and Graveley 'Copypasta' Sunday (Copy-Paste, Add One Word, Change 'T' to 't')
recycling text
EPO on Strike This Past Friday (All Major Sites), Massive Strike Continues Tomorrow
strikes have trebled, not trembled, compared to last month (in Munich)
Links 12/04/2026: SLAPPs Against Thai Journalists Who Expose High-Level Corruption, Maharlika (Philippines/Marcos) Threatens to Lawyer Up Against GAFAM to Demand Censorship of Critics
Links for the day
Racism and IBM
at IBM and Red Hat people who are hard-working and proficient are now being fired based on their ethnicity and nationality (or either)
When Cruelty is the Point (American SLAPPs in London, the United Kingdom, Europe)
Consider the following
Resistance to SLAPPs in the UK: Coalition Growing
thankfully awareness of SLAPPs in the UK is improving
Links 12/04/2026: Mass Rebellion Against Slop, UK Crackdown on Nudification by Slop
Links for the day
Gemini Links 12/04/2026: "Objective Truth" and Flutter
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, April 11, 2026
IRC logs for Saturday, April 11, 2026
Red Hat: We Kill People, But Please Obey the CoC or We'll Banish You
From Red Hat's own site
SLAPP Censorship - Part 43 Out of 200: Garrett and Graveley Particulars of Claims Almost Identical and 5RB Needs to Investigate Its Barristers (Its Reputation is at Stake)
Scrolling up and down in social control media
Gemini Links 11/04/2026: Floppy Disks on Linux and Junix
Links for the day
statCounter: Microsoft Windows Falls to All-Time Low This Month in France
French government agencies are ordered to move to GNU/Linux
Disgruntled IBMers Explain Why IBM is Circling Down a Death Spiral, Gerstner (Recently Deceased) Destroyed IBM in April 1993, and IBM Now Weaponises PIPs to Attack Its Own
We've just checked if anyone has covered mass layoffs at IBM Red Hat. Nope.
The Central Staff Committee of the EPO Explains Late March Meetings Coinciding With Commencement of the Non-Stop Strikes at Europe's Second-Largest Institution
The fifth meeting report and sixth meeting report show some of the concerns leading up to the mass strikes
Gemini Links 11/04/2026: Critique of Delta Chat and Why Trying to Emulate Centralised, Addictive "Facebook" is Misguided
Links for the day
Links 11/04/2026: Scam Altman’s Trust Issues at OpenAI and EFF Quitting Twitter
Links for the day
Links 11/04/2026: Twitter Presence Considered Harmful to News Sites, "The Future of Everything is Lies"
Links for the day
thenextweb.com (TNW) Appears to Have Become a Slopfarm, Fake Articles About France and GNU/Linux Flood the Web
If you're not against slop, you're part of the problem
Almost 3 Days Later, Still Zero Press Coverage (Except One Publisher) About Mass Layoffs at Red Hat, Almost 500 People Laid Off (Over 400 for Sure)
"A document posted by FOSS advocacy site Techrights appears to be that memo and explains that Red Hat has devised a location strategy under which it has identified key sites for prioritized hiring and strategic workforce investment."
The Register MS, About 6 Million Pounds in Debt, Helps Promote Microsoft's Gartner Group and Prop Up the Ponzi Scheme of Slop Plagiarism, Fake Article Mentions "AI" About 20 Times
What was now known as The Register UK not only works against the interests of the UK; it works for charlatans and frauds
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, April 10, 2026
IRC logs for Friday, April 10, 2026