Xbox Warranty Drives 1.9usd bln Loss - 11.6 million 360s Shipped Options

[Xbox-Scene]

Xbox Warranty Drives 1.9usd bln Loss - 11.6 million 360s Shipped Posted by XanTium | July 19 23:16 EST | News Category: Xbox360

Next-gen.biz posted more details about the Q4 results of Microsoft's Entertainment and Devices Division (EDD): [QUOTE] Xbox 360 warranty charges drove Microsoft's Xbox division to post a $1.89 billion operating loss for the fiscal year. Losses for the Entertainment and Devices Division (EDD) increased by 47 percent for the year ended June 30, due primarily to a $1.06 billion charge stemming from the extension of the Xbox 360 hardware warranty. Microsoft said reduced console manufacturing costs partially offset the charges caused by the upgraded warranty. Microsoft shipped 700,000 consoles during the quarter compared to 1.8 million for the same period a year prior. The firm has shipped 11.6 million consoles to date since the Xbox 360's November 2005 launch. [/QUOTE] Full Story: next-gen.biz

[ILLusions0fGrander]

well 5 of those were shipped to be received by me, and one of those 5 is in working condition, with one that should arrive from MS repair center tomorrow after 45 days.

oh well, you cant just launch a popular system and have a chunk of buyers SOL with a 3ROL, so now the only thing i think they need to work on is changing the 2-3 weeks down to 7-10 days like they used to say for turnaround time.

This post has been edited by ILLusions0fGrander: Jul 20 2007, 03:56 AM

[STICKY_BUD]

i am not an insider, but i have a few buddies who work in the right jobs to know this kind of information. i heard just last weekend that the write off decision was planned all along, but technically solving the 3rol issue was holding it up. then they wrote off the cost to repair every remaining console in service.

it might actually be shady accounting. then again, it might be smart accounting. yours, mine and everyone else's console that is currently in operation is assumed to be subject to this write off. well, not mine actually since it is no longer under warranty.

the working numbers were actually simple too. $100 per console for the over 10 million consoles that are estimated to be in operation; including already repaired/refurbished consoles and not including approx 1.5 million consoles which are assumed to be not working or affected by a non-warranty issue.

if you have billions of dollars in cash and expect to report your first profit for a division within the next fiscal year, it does make a bit of sense to do it this way...

[Sircolby45]

Now I am confused...Another website just said they turned a profit. Am I overlooking something here?

http://www.gamesindustry.biz/content_page.php?aid=26902
Despite taking a USD 1.15 billion charge related to Xbox 360 warranty issues, Microsoft finished the quarter ending June 30 with revenue of USD 13.37 billion and net profit of 3.04 billion.

Maybe that is not numbers for the actual game industry? I dono...

This post has been edited by Sircolby45: Jul 20 2007, 05:07 AM

[busbeepbeep]

Microsoft as a whole turned a profit. The game division suffered a loss.

[dmitri]

That means that Entertainment & Devices lost $83,000,000 last year.
No wonder they have a new boss now.



-dp

[FCTE]

That means that Entertainment & Devices lost $83,000,000 last year.
No wonder they have a new boss now.
-dp

I agree. Moore's leaving the company due to his own freewill for whatever reason just doesn't seem to add up. I don't believe it was a coincidence that he "left" in the wake of this fiasco.

This post has been edited by FCTE: Jul 20 2007, 05:51 AM

[STICKY_BUD]

That means that Entertainment & Devices lost $83,000,000 last year.
No wonder they have a new boss now.
-dp

ITS WORSE THAN THAT ACTUALLY

before the write-off, they lost .83 billion or $830,000,000

[FCTE]

Now I am confused...Another website just said they turned a profit. Am I overlooking something here?

http://www.gamesindustry.biz/content_page.php?aid=26902
Despite taking a USD 1.15 billion charge related to Xbox 360 warranty issues, Microsoft finished the quarter ending June 30 with revenue of USD 13.37 billion and net profit of 3.04 billion.

Maybe that is not numbers for the actual game industry? I dono...

That article gives the reason............. "Revenue growth was driven primarily by Windows Vista and Microsoft Office 2007."

People are actually buying Vista? Scary.

[Slag Bag]

The EDD division has never made a profit since its creation. The have had consistant losses in the $400mil range for years.

[Chancer]

People are actually buying Vista? Scary.

No problems with it running 5 PCs on the network here. Another case of only seeing bad press on the internet?

xnoelahg if you want to make a slanderous accusation against MS do it direct . Do not do it on XS. Post removed.

This post has been edited by Chancer: Jul 20 2007, 08:23 AM

[iLLNESS]

this proly will scare away customers with the 3 yr warranty, the loss in gaming, and the fact moore is leaving, but look at it this way, sony is losing a shitload on their ps3, all they have is electronics.. if u look at the market how many manufacturers are there? like 50? look at the computer market.. how many paid for OS's do the majority use? 2? m$ makes enough money to open a gaming market in consoles, pc games, handheld, cellphones, hell they could devote 100 million to games on your watch, and i bet overall the company will be FAR from a loss...

only a fucking idiot would change his purchase because of this kinda news..
moore was proly pissed cuz all the previous sony exclusives coming to a non sony product hahaha. just like bleamcast (was proly gonna be a huge seller.. till it became illegal)

[Boiker]

There is one good thing that can come of this. Microsoft will probably never make a console with a design flaw that is this prominent ever again. Next time, I'm sure they'll do more extensive testing prior to release to iron out things like this.

[0794]

People are actually buying Vista? Scary.

Vista is a great OS and several machines in my home are serving me well running Vista.

I wish I knew more about accounting to understand all the reasoning behind this posted loss for the warranty extension issue - obviously MS knows how to do things well financially.

~12 million 360s shipped - now that is a lot of machines...

[Neilor]

Is it just me or is 700k last qtr versus the 1.8M the same qtr the year before the most worrying thing in this story.... that's not what you should be seeing for your second year in the market....