Bonum Certa Men Certa

Microsoft's XBox Group Still Operates at a Loss, XBox Director Quits

Rusty ships
XBox is still hanging in there



Summary: More depressing news for XBox 360 as it swings back to losses and the strategy chief jumps ship

A LOT of people are being misled by Microsoft's PR, which makes it seem like XBox 360 is actually succeeding. In reality -- truth be told -- several years after the launch Microsoft is still losing money.

The loss comes after two consecutive quarters of profit for the division, which had long been notorious as an overall money-loser for Microsoft.


This is scarcely covered by the press, but more disturbingly, the usual fan sites were yapping about XBox results being great when the last report came out (with overall earnings down 32%). It was a lie. Here is more information:

The news was similarly scattered for Microsoft's Entertainment and Devices division, which includes the Xbox 360 business. Total revenues for the gaming segment were down less than 2 percent to $1.57 billion, and where the division posted an operating profit of $106 million during last year's second quarter, this year it ran a $31 million loss.


A year or so ago, Information Week revealed that Microsoft had lost about $7 billion in its XBox business alone. It seems to be one of the best-guarded secrets of Microsoft.

How can so much money be lost other than by selling units at a loss? Well, with an enormous failure rate (claimed to be around 67%), this whole business has become painful and almost suicidal. Even the editor of EDN has just published an article about those Red Rings of Death he has been getting on his XBox 360. It's not a resolved issue; it's a design flaw.

Back on Wednesday the 15th, I told you that my first-generation Xbox 360 game console had experienced the Red Ring of Death the prior Friday evening. I also shipped it off on the 15th, and the UPS tracking website reported that it was delivered to Microsoft's Mesquite, TX service facility at 10:15AM on the 21st.


Microsoft fired its more responsible employee for saying he truth about the failure rates. He was called a "whistleblower" rather than a knowledgeable person who wanted to mitigate the risk of death (XBox 360s are reportedly catching on fire sometimes).

The situation in XBox is so miserable that even its strategy chief has just quit Microsoft.

MICROSOFT’s Xbox strategy boss Richard Teversham has quit the firm to join arch rival Apple, MCV can reveal.


This is also covered in:



Speaking of an XBox director who departs, here is another XBox director who recently departed in anger. He's a film director though, not an executive director. We wrote about it some days ago and here's more information:



Other XBox employees had similarly bad experiences. Over the past 2 years, many key employees of the XBox group simply ditched the company. We have some examples here.

"If you can’t make it good, at least make it look good."

--Bill Gates, Microsoft

Comments

Recent Techrights' Posts

[Video] Why Microsoft is by Far the Biggest Foe of Computer Security (Clue: It Profits From Security Failings)
Microsoft is infiltrating policy-making bodies, ensuring real security is never pursued
Harassment Against My Wife Continues
Drug addict versus family of Techrights authors
 
Links 29/04/2024: "AI" Hype Deflated, Economies Slow Down Further
Links for the day
Gemini Links 29/04/2024: Gopher Experiment and Profectus Alpha 0.9
Links for the day
Debian 'Cabal' (via SPI) Tried to Silence or 'Cancel' Daniel Pocock at DNS Level. It Didn't Work. It Backfired as the Material Received Even More Visibility.
know the truth about modern slavery
Lucas Nussbaum & Debian attempted exploit of OVH Hosting insider
Reprinted with permission from disguised.work
Software in the Public Interest (SPI) is Not a Friend of Freedom
We'll shortly reproduce two older articles from disguised.work
Syria, John Lennon & Debian WIPO panel appointed
Reprinted with permission from disguised.work
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, April 28, 2024
IRC logs for Sunday, April 28, 2024
[Video] GNU and Linux Everywhere (Except by Name)
In a sense, Linux already has over 50% of the world's "OS" market
[Video] Canonical Isn't (No Longer) Serious About Making GNU/Linux Succeed in Desktops/Laptops
Some of the notorious (or "controversial") policies of Canonical have been covered here for years
[Video] What We've Learned About Debian From Emeritus Debian Developer Daniel Pocock
pressure had been put on us (by Debian people and their employer/s) and as a result we did not republish Debian material for a number of years
Bruce Perens & Debian public domain trademark promise
Reprinted with permission from disguised.work
Links 28/04/2024: Shareholders Worry "AI" Hype Brings No Income, Money Down the Drain
Links for the day
Lawyer won't lie for Molly de Blanc & Chris Lamb (mollamby)
Reprinted with permission from disguised.work
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, April 27, 2024
IRC logs for Saturday, April 27, 2024
Links 27/04/2024: Spying Under Fire, Intel in Trouble Again
Links for the day
Lucas Kanashiro & Debian/Canonical/Ubuntu female GSoC intern relationship
Reprinted with permission from disguised.work
Pranav Jain & Debian, DebConf, unfair rent boy rumors
Reprinted with permission from disguised.work
Links 27/04/2024: Kaiser Gave Patients' Data to Microsoft, "Microsoft Lost ‘Dream Job’ Status"
Links for the day
Gemini Links 27/04/2024: Sunrise Photos and Slow Productivity
Links for the day
Microsoft: Our "Goodwill" Gained Over 51 Billion Dollars in the Past Nine Months Alone, Now "Worth" as Much as All Our Physical Assets (Property and Equipment)
The makeup of a Ponzi scheme where the balance sheet has immaterial nonsense
Almost 2,700 New Posts Since Upgrading to Static Site 7 Months Ago, Still Getting More Productive Over Time
We've come a long way since last autumn
FSFE (Ja, Das Gulag Deutschland) Has Lost Its Tongue
Articles/month
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, April 26, 2024
IRC logs for Friday, April 26, 2024
Overpaid lawyer & Debian miss WIPO deadline
Reprinted with permission from disguised.work
Brian Gupta & Debian: WIPO claim botched, suspended
Reprinted with permission from disguised.work