Microsoft: Xbox Made More Money Than Sony And Nintendo

Gosh what a good, bad year it's been.

Posted by Staff
Microsoft: Xbox Made More Money Than Sony And Nintendo
Speaking to investors, Microsoft's president of the Entertainment and Devices division, Robbie Bach, did his utmost to step through the minefield that has been repair costs for the Xbox 360 and the division's lack of profitability. In doing so, Bach makes claim to Xbox 360 making more money than its competitors.

Here's how Robbie calmed the investors...

"...certainly if you think about the year and the warranty issues, you have to say, Gosh, that was a tough year and something you're going to have to move beyond. But even in this case I want to make sure people understand some fundamentals of where that business is, since the fundamentals are very strong.

"Our attach rate is an all-time record at this stage in a life cycle. We are at 6.1 games per console in the U.S., and almost four accessories per console in the U.S. Those are amazing record-setting numbers.

"If you think about consumer spending on the platform, compare since the launch of the Wii and the PlayStation 3 to date, so a little over, what, seven or eight months, people have spent $2.6 billion in the U.S. on Xbox 360 all up during that period.

"That's almost double what they spent on either the Wii or PlayStation 3. There's a lot of traction with consumers around this product. We've launched in 11 more countries. We're now in 37 countries worldwide. We're in a very good position on the fundamentals of that business."


Fundamentally then, all is good in Robbie's world - and statistics are fantastic things. So, onto other - but related - matters... 2008 and money. Bach began his presentation with some folksy, down-home, cursing, "Now, if you think about fiscal year '07 for us, and you look at it sort of at the top-line financial point of view, you'd have to say, Gosh, this wasn't a particularly successful year, particularly if you think about the billion-dollar warranty reserve and the work we've had to do around that. But I do want to give you some colour for performance across E&D, because I think it's actually quite different, depending on the various businesses that you look at."

But next year's going to be better...

"If you think about Xbox LIVE, we've now passed the 7 million member mark; 220 million downloads of content -- 45 million of those were for paid arcade games. This is a really strong developing part of our business and a key differentiator that our competitors can't get after.

So as I think about fiscal year '07, I have to say, Gosh, we're going to improve on that, because when you look at that overall picture you say it certainly wasn't a great year. But I think the fundamentals in the businesses are actually quite strong, and I think the opportunity it creates for fiscal year '08 is also quite strong."


We'll keep you posted on more from Robbie...
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Comments

ozfunghi 30 Jul 2007 17:24
1/3
At times like this, Robbies history as stand-up commedian really shows.
deleted 30 Jul 2007 18:03
2/3
yeah they have been getting 12,000 little boys and girls to solder 360s in a small shed at the bottom of gates garden, and the cost to softy is 36.8p per console produced, therefore profits are soaring although it does explain the build quality!

still love my 360 though
YenRug 31 Jul 2007 14:00
3/3
Correct me if I'm wrong, but doesn't "made" (in the title) usually imply profit, especially in that statement? Wouldn't "higher/greater revenue" be more precise, because I'm damn sure they didn't make much profit.
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