Ouch! Yaroo! But comfy Office cushion means Vole's butt protected
By INQUIRER staff: Monday 03 February 2003, 09:05
A FILING WITH THE US Securities and Exchange Commission that Microsoft made at the end of last week has revealed how much its bid to topple the Playstation 2 console is costing. The filing breaks out Microsoft sales and profitability by division and showed that its Home and Entertainment division made a quarterly loss of $348 million on sales of $1.28 billion. That's a bigger drop than in the same quarter last year, when it lost only $180 million.
So for every Xbox Microsoft sells, it loses around $100.
Microsoft, however, appears to remain committed to pushing on with the Xbox platform, although many observers see Sony's Playstation racing ahead.
In fact, any losses Microsoft makes on this and similar enterprises is well cushioned by the immense profits the firm makes on its operating system and application software business.
Moore On Xbox 2 Well not much more, but still a few exciting tidbits.
October 05, 2004 - Microsoft Corporate Vice President Peter Moore is pretty adamant about his company's chances in the next generation hardware battle. In an interview with Japan's Nikkei Business newspaper, Moore comments, "We won't lose with the next generation system. We have no intention of losing."
Later in the interview, Moore reveals some interesting facts about the Xbox's share of the worldwide gaming market. While Xbox hasn't managed more than a small single-digit percentage of the Japanese market, the system managed to climb from 23% of the North American market in June of 2003 to 33% in June of this year, according to the Nikkei article. At this, Moore reveals, "The fact that it's heating up has big meaning for the next generation." Moore points to three reasons for the Xbox's failure in Japan this generation. He believes that because the system is the size of a VCR, its design was not accepted by the Japanese. Software for the system was inadequate and did not catch the eyes of consumers. Finally, perhaps the fatal blow, was Microsoft's arrival to the market two years after the PS2.
Commenting on the next generation, Moore says, "We'll not repeat these mistakes next time." Microsoft plans to learn from the mistakes, and will be starting Xbox 2's design from scratch, making it smaller and simpler. Moore plans for strong software from the start, along with titles targeting the Japanese market. Also, Moore reveals once again, "We will not be later than our rivals."
Moore also reveals one hint at progress on game development for the next generation system. Apparently, the company has already finished distributing support tools for game development to software companies. It's unclear if these are specific Xbox 2 development tools, or just tools to get started with work on machines that reflect the Xbox 2's planned specifications.
Commenting on Sony Computer Entertainment's recent announcement of the Blu-Ray storage format for the PS2, Moore once again states how the Xbox is a game machine. The company plans for stronger Online gameplay than before and will offer broadband-based Online gameplay from the start. The next generation will see the continuation of voice-based communication and other features with the same ease of use.
Finally, Moore offers a hint at Microsoft's policy of sticking out the console wars, stating "The winner in the game industry is not decided in one generation."