Microsoft Lost 7 Billion Dollars on Xbox and MSN

In just 4 years

Last week could be called "celebration week" as Microsoft, Google and Internet Explorer turned 30, 7 and 10 years old respectively.

Since Microsoft is the oldest in the business, Forbes have decided to make an appraisal of the company's financial status. One of the interesting things discovered is that the giant from Redmond has actually lost money with some of its products. We are not talking about tens or thousands of dollars, but about $7 billion. This "modest" sum was spent on Xbox, MSN and on the SMB (small and medium business) software division.

Microsoft wanted at all costs to compete with Sony. Even though the Playstation console system was the market leader, they still managed to get in second place, and the company hopes that Xbox 360 will even reach number one.

Microsoft's MSN is on the third place, but far behind its direct competitors, Google and Yahoo.

Seven billion dollars might look like a huge amount of money, but compared to the company's revenues it doesn't mean much, so Microsoft can still attempt to ensure the success of each and every product they make.

This week, Softpedia would like to know your opinion on gaming consoles. What is your favorite console you either own or you are planning to buy? Are you an Xbox fan or a Playstation fan? Has Xbox360 convinced you it's time to buy one? Or you'll wait for the PS3? Express your opinion here.


By Alexandru Macovschi    28 Sep 2005, 13:23 GMT