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Xbox 360 Turns Profit Through Q2

Xbox 360 Turns A Profit Through Q2Robbie Bach said that the Xbox 360 would be profitable in 2008 and, halfway through the companies fiscal year, the Entertainment and Devices Division, which is home of the Xbox 360 and the division which Bach is the President of, is reporting operating income of $524 million, compared to a $423 million loss during the same period the previous year.

The increase of Xbox 360 hardware sales, 6.1 million in the first half of the fiscal year, up from 5.4 million the same period last year, and overall success of the Xbox 360 brand has to be attributed heavily to the runaway success of Halo 3. Seeing the Xbox 360 and the Entertainment and Devices Division, which is also home to the Zune and Games for Windows, continue that success without Master Chief’s shot in the arm will be a true testament to how well the Xbox 360 does in terms of bottom line.

While this is truly an achievement, seeing as how the Xbox 360 and it’s predecessor weren’t exactly known for making money, it must be pointed out that if a post must be written to point out that you actually made money, which is what products and companies are supposed to do, then you weren’t exactly lighting the world on fire. To be fare, it is customary that console makers tend to lose money at the beginning of a consoles life cycle and make most the money in the middle and end of the life cycle when production costs come down and software sales, which the Xbox 360 leads all hardware in, goes up.

So, can the Xbox 360 maintain this momentum in the second half of their fiscal year, with a multiplatform GTA IV and the possibility of Gears of War 2, or as Halo 3’s sales fade so too will the Xbox 360’s profits?

  • mik

    That’s definitely good news for MS. Of course, overall they’re still multiple billions of dollars in the hole in that division–but at least it looks like they may have turned the corner.

  • hmm something is wrong with that picture, I know, where are the red lights?