- last post: 01.01.0001 12:00 AM PDT
Posted by: Xeroh
On the other hand, despite a strong market position, the Xbox is still a long way from achieving profitability. The Home and Entertainment Group, which includes the Xbox division, had a $339 million operating loss for the quarter on revenue of $499 million and anemic revenue growth of 3 percent--the lowest growth rate of any of Microsoft's seven business segments. Though Microsoft doesn't break out separate results for the Xbox, it's pretty clear that the console business is still a strategic investment, not a profit center.
Many analysts have criticized Microsoft's multibillion dollar cash hoard, and the company is taking steps to change its cash-management strategy. The key parts of its new strategy will be cash dividends to shareholders and a share buyback program worth up to $30 billion over the next four years.
I don't care what analysts think... Bill Has his sights set on Sony and the PS. He has enough pull and enough money to make sure the Xbox never dies. Plus, I think Halo 2 is going to change a lot of things in the marketplace. Halo put Xbox on the map, Halo 2 is gonna put it on top.