UPDATE: This article was taken from gamesindustrybiz.com - it shows that Microsoft has already failed in the console business with their Xbox...
Microsoft reveals scale of Xbox losses
Rob Fahey 15:30 15/11/2002
Console business is Microsoft's biggest money pit
The full scale of the losses Microsoft is incurring in its drive to establish a foothold in the console business were revealed today, with the giant corporation filing figures with the American Securities and Exchange Commission which show its Home and Entertainment Division, which covers the Xbox business, making a bigger loss than any other non-profitable division of the company.
For the three months ended September 30, the division reported losses of $177 million on revenues of $505 million - higher than last years figure of $68 million, but with investment in Xbox Live still ramping up and further price cuts to the hardware a possibility, the losses may not yet have peaked.
Other non-profitable divisions included the mobile devices business, which is currently attempting to break into the hugely competitive mobile phone market, and the MSN internet service. These divisions lost $33 million and $97 million respectively.
Of course, the overall picture is a lot brighter - the company's two profitable divisions, namely operating systems and software, make a profit of $3.5 billion between them, more than enough to fund the losses elsewhere. Microsoft is certainly hurting because of Xbox, but gritting its teeth and pushing forward isn't likely to be a difficult decision for a company with $30 billion in the bank.
Microsoft needs a foothold in the living room and a serious competitor to the PlayStation, and spending billions of dollars now is likely to be peanuts in the long term. As consoles become more powerful and multi-functional, this is no longer going to be a battle about games, but rather about the future of consumer computing - and the Redmond-based giant isn't about to surrender that vital territory to Sony without a fight.
Source:BBC News
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So you see, I was right all along! Xbox has failed...and Nintendo and Sony have nothing to worry about. Xbox Live - an online gaming service for the Xbox - is Microsoft's only hope to resurrect any futures of the Xbox's success.
HA HA! Stupid Microsoft! They've lost millions of dollars from the Xbox! Sony had better sales within the first week of the PlayStation's launch!
This goes to show you that Microsoft has no idea what they are doing with their video games. They are experimenting with trial-and-error on the public, who just don't seem to be interested in any of Microsoft's business with the video games industry!