Cheaper parts might make Xbox profitable
Seattle PI | at | by Mike
Microsoft, which is trying to compete with Sony in video-game consoles, will try to design the next version of its Xbox machine with cheaper parts because the current model won't ever be profitable.
"With the current cost of goods, there's no way to make money with this generation of the console," Chief Financial Officer John Connors said at a Microsoft investor presentation in Boston.
He didn't say when the company would introduce a new Xbox. Analysts expect the next one in 2005 or 2006. Microsoft, the world's biggest software maker, had a loss of $874 million in the division that includes Xbox in the year that ended June 30, 2002, and a $924 million loss the next year.