Microsoft's Xbox unit has yet to turn a profit, but the company keeps insisting that profitability is just around the corner. That goal may have to wait a little bit longer, as the company has announced that it will take a $1.05-$1.15 Billion charge to cover certain manufacturing defects and the cost of giving consumers an extended warranty. The company is, of course, used to fixing products after they've been released, but repairing a manufacturing defect isn't quite as easy as pushing out a patch to cover a software bug. The company still claims that it the Xbox unit will hit its goal of achieving profitability by 2008, although it's hard to put much faith in that promise. Manufacturing issues notwithstanding, the broader industry picture is probably not how Microsoft imagined it when it first threw its hat into the ring. Far from achieving a comfortable duopoly with Sony, the two companies have badly bloodied themselves, while an unexpectedly resurgent Nintendo not only grabs significant market share, but makes money while doing it.
If you liked this post, you may also be interested in...
- TSA Collects Nearly $500,000 In Abandoned Change Per Year And Has No Idea What To Do With It
- Lawsuit Claims ICE Officers Shot At, Arrested Wrong Man
- United Airlines Nearly Kills Pet, Aims For Streisand Glory Instead Of Paying Vet Bill
- Obama's Response To Too Much Secrecy About Surveillance... Is More Secrecy
- The USTR's Revolving Door With Copyright And Patent Maximalists Removes All Credibility