Thursday, January 27, 2005

$50 x 6 million = first Xbox profit

Microsoft's games unit turned a profit of $84 million in the latest quarter, reversing a loss of nearly $400 million a year earlier.

In three months, Microsoft sold more than 6 million copies of "Halo 2" (one of them to me). That's $300 million in fat-margin revenue from one game alone.

Analysts quoted in the Times article caution that a "Halo 2" doesn't come along every quarter, and Microsoft CFO John Connors said he didn't expect the business to reach sustained profitability until 2007.