Halo 3 Sales Might Actually Make MS Game Group Some Money

richtimes.jpgFor all their pluckiness and sticktuitiveness, Microsoft's games group aren't in the business of making money. They lose money, have lost millions over the years, and are still losing money. That is, until Halo 3. Goldman, Sachs & Co. analysts are predicting that the game's release may have pulled in $US 170 million, which is so much cash it may actually see the group turn a profit. Which would be good news for them, but better news for us: I can only imagine how excited that press release is going to be. U.S. Stocks Rise, Led by Computer Shares; Microsoft, Apple Gain [Bloomberg]


Comments

    Turn a profit...for this quarter...only...

    but overall they're still billions in the hole.

    That's why they quickly announced the 1 billion dollar RROD warranty extension before the end of the last financial year, so they could 'pretend' to make a profit.

    If Halo 3 doesn't break the Spiderman 3 record like they've been expecting, you can bet your ass that dreaded 'shipped' word will be back in full swing.

    @ PAUL

    Overall, MS is doing fine.

    The warranty extension was announced quickly so it could be taken out of operating losses from the previous year, and be used as a taxable offset. In all reality it only means that they paid less tax.

    I doubt Microsoft cares about all the lost cash from XBOX division. All they care is that from Halo 3 release they start make profit and keep making it. No more loose from Halo 3 release to the next XBOX cycle , would make the CEO happy that the console is valuable market.

    This year Microsoft will make around 14billion net profit alone.

    Hmm. The news just won't be exciting if there's no starch-shirted Peter Moore to ink it onto his rippling bicep.
    Nice choice of image, Mr. Plunkett.

    What the hell happened to kotaku? :( I don't like this at all! MS can take the money if I get my old kotaku back!

    It's a good game, worth the purchase, I got the Helemt edition cause I wanted to re-cap what happened in the last halo's before I began playing (came with a DVD with all the cinematics from halo 1-2)

    @ PAUL

    Exactly right dude. We'll get some press release at the end of the quarter claiming 'WE ARE NOW PROFITABLE' and it will be splashed all over the news. Even though it was all organised so that quarter had no hardware production or something so losses within that period were minimised, just so they can make the claim.

    Then when they're back to massive losses the next quarter, nobody will report it. But the 'vibe' of 'MS doesn't lose money anymore' will hang around much longer. It happened in Q4 2004, and now it will happen in Q3 2007.

    They are not in the black until the make back the 9 billion bucks lost first. What they're doing is like making the monthly minimum payment on a credit card debt for the first time and calling the debt 'paid off'

Join the discussion!

Trending Stories Right Now