Xbox drained $4 billion in four years from Microsoft’s profits
A news story on Forbes.com talks about how Microsoft lost $4 billion in four years on the Xbox. I’m sure Microsoft is not worried though as they have $40 billion in cash and over the next 18 months they are launching fifteen new products. The releases include new versions of Windows, Office and the much-hyped Xbox 360.
The Xbox game console is hot, but its division has lost $4 billion in four years and isn’t yet in the black. The mobile-software division, also losing money, has just a sliver of the market for cell phone handsets. Microsoft Business Solutions, after acquiring Great Plains Software for $1.1 billion and Navision for $1.4 billion, is supposed to deliver $10 billion in sales by 2010. At its current 6% growth rate, MBS will attain that goal in 43 years.
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