News > Microsoft Loses $1.9 Billion On Xbox Division
July 20, 2007
Microsoft's entertainment and devices devision has reached $1.89 billion in losses for the year. That number is up 47 percent from last year.
$1.2 billion of the loss can be attributed to Microsoft's recent two year warranty extension on the faulty Xbox 360 (aka the Xbox 360 repair program), although the company claims that reduction in the manufacturing expenses of the console partially offset this expenditure.
The division's revenues increased this year by 28 percent, however, reaching $6.08 billion. Microsoft Corp. in it's entirety posted a 15 percent increase in revenues this year, exceeding $51 billion.
Despite it's losses up until this point, Microsoft is confident that the games division will turn a profit in the coming financial year.
*Eddie R Inzauto - Senior Editor, GameWad.com
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