Microsoft's Game Division Suffers $1.89B Shortfall

Xbox won't go away, but I could see MSFT try to spin off the gaming division to be its own entity. Shareholders (who are more important than gamers) won't put up with a consistently losing division for very long. It went out of its element when it tried to design hardware instead of sticking with what its good at with software. MSFT gaming division would probably be doing much better if it focused on only making games and other software for the PS3 and Wii instead of trying to build its own gaming systems. This is what we call "diworseification".

 

i don't want to spoil the parade here.

the 360 is not just a gaming system. its was built so microsoft can take over your living room. its a media center, u can download movies, buy games, listen to music. guess what? all that data is collected and helps marketers market more products to you.

..there are the sprite lymon commercials now on xbox live.
there's also IPTV, yes will be able to watch and record HD programming.
while sony is just trying to control you buying blue ray discs, microsoft has greater aspirations.

http://kotaku.com/gaming/iptv-xbox-360/microsoft-unveils-iptv+enabled-xbox-360-226832.php
Microsoft Unveils IPTV-Enabled Xbox 360

Robbie Bach tonight unveiled a new IPTV service for the Xbox 360 at the Microsoft keynote.

Gamers will be able to watch and record television on their console in the background while playing games on Live, Bach said.

The new service is expected to hit by this holiday and will be offered by "providers that are deploying TV services based on Microsoft TV IPTV Edition."


its about control, power, and VF5 online.

 

tinman beat me to it but it isn't just about making money right now. The xbox is strategic to MS' long term plans and goes beyond just gaming.

 

Even with this huge loss microsofts earnings went up. Netscape used to have 90% of the browser market now IE is the dominant play. They have crazy amount of cash and they need to grow and the only way to make money is to spend monet.

 

This has been Sony's goal since PS2. This is why MS entered the gaming business. They feared Sony would eventually develop a product that would replace PC's.

What aspirations? Trying to force me to buy more Xbox's after my initial one dies after a few months of usage? Making me pay to play games with my friends online? Raping me for downloadable content that is free on PC/PS3? The only aspiration I see is their creative ways to make me spend more money.

I can watch tv in the background while playing games? Big deal. I guess the games are that boring I rather be watching tv, amirite? Are they able to record HD programing? How large (in megs) will each episode be? If this service is free, how long will the 20 gig hd last? The only other option is to upgrade to their overpriced proritiership HD's, thus, the MS aspiration of you wasting more money.

 

im so glad you are so passionate about sony corporation.
do u get at least minimum wage from them?
i hope they are doing something for you. maybe a free walkman or maybe an aibo.

i guess some people are passionate about the rockets, helping the world, passionate about music.

you are passionate about a video game system. i hope your playstation loves you back.

does the blu-ray drive work with all your sperm in it?

 

Oh my god Tinman, freaking stop already. Are you trying to lead ANOTHER thread to a "you're a fanboy" debate?

Just let people talk about the companies. Your posts have been just as supportive of Microsoft as his of Sony. Don't start this **** after we've all suffered through it before.



Anyway, I'm pretty confident Microsoft will start turning a profit later in the next fiscal later or soon after that. I hope for their sake they don't need a major overhall of the Xbox design though. That could put them back quite a lot.

I disagree with the notion that the gaming division is not in jeopardy. Yea Microsoft has a lot of money but they did not get into that position by having losing enterprises. The box might bring in some other bussiness but it's impossible to tell if that offsets the loses that they have been incurring the last few years. If the loses continue in the billions, Microsoft will find another way to increase their media presence in American Households.

Barring any xboxs starting to set homes on fire, I think they will pull through.

 

Rockets/Mavs
Michigan/OSU
Ford/Chevy
Blu Ray/HDDVD
Chow/Tinman

 

That is great and I am sure that MSFT has long term plans for the Xbox 360, but the division still has to start to turn a profit soon. Yes there are cases where throwing money at something can speed up profitability, but the gaming division has yet to turn a profit going all the way back to the original Xbox. At some point shareholders are going to get tired of one division holding back the rest of the company.

I realize that MSFT still made money this quarter, but that does not excuse the gaming division for being a cost center. The goal of management for any company is to make as much money as possible. If the gaming division can't make money and is holding back the rest of the company it should be spun off or scrapped.

 

chow is straight up a fanboy.
i have plenty of sony products and have owned a ps2. hell my tv is a 50in sony. chow has attempted to insult me before. i say attempted cause he's got no skills. he's the Yi Jianlian of Clutchfans. this dude probably doesnt even play video games. tinman is loyal to the rockets. i bought the xbox/xbox360 cause u couldn't play streetfighter online on ps2. i so happen to PLAY other games too. i don't obsess on OTHER COMPANIES EARNINGS unless i have some stock in it.
im actually dropping facts to another clutchfan, then this Chow_Yi_Jianlian starts getting all fanboy like one of those korean pyschos at virginia tech.
cow is a guy who thinks playstation is his mom and he gets all mad at the yomama jokes. why r u defending him anyways? dont u freaking know i'm the tinman and this guy is just some nerdy kid who needs to move out of his parents house.

 

this is not even a competition, that guy can't write anything useful and thought provoking like me. my threads get thousands of reads, i change people's opinions and i educate them. this guy is VSPANing on the bench while I go triple double like Tmac.

don't even compare me to chow. i eat him up like he's chow mein.

maxwell forever!