Gamertell

Microsoft Gaming reported a $1.89 billion loss for the fiscal year ending in June 2007. Yeah you read that right, I said billion. You know, nine zeros. This is an increase of 47% from last year’s $1.28 billion operating loss. Even as I sat there reviewing the information in shock, my drink mysteriously caught in limbo between coaster and mouth, I figured out the cause before I read it, unreliable hardware! (Did somebody say red lights?) Though the gaming giant saw $6.08 billion in annual revenue it still wound up in the hole for the year, attributing the loss primarily to decreased console sales and the 3-year extension on the Xbox 360’s manufacturer’s warranty. The warranty extension alone accounted for a $1.06 billion.

Raise your hands if you have seen personally or heard of a close friend who was knocked out of their game for a month as a result of the three red flashing lights of death. Oh, okay… that’s everybody. I know people who are on their third system. This all leads me to believe that being first to market isn’t necessarily the best thing to be in the console world. (Consider the Dreamcast fiasco.) Maybe it’s time for console developers to concentrate more on making a dependable, solid product before coming out. I mean if a company with as good a products as Microsoft Gaming’s games list can’t turn a profit I guess my plans for starting a fruit slushy stand in my backyard are out the window.

I have to admit that I still play my 360 as much as I can. Maybe this rant is simply the result of frustration and fear: Frustration over never knowing if the box is going to work when I turn it on and fear that Microsoft gaming won’t be able to turn it around. I love my 360 and the games Microsoft supports and, reliable system or not, you’re going to see m0re c0wbell online between those intermittent periods of flashing red lights.

Site [Microsoft Investor Relations] Via [Gamespot]