BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Entertainment  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Wednesday, 26 June, 2002, 15:36 GMT 16:36 UK
Work starts on new Xbox
Xbox
Microsoft: "Committed to Xbox for the long term"
Microsoft has confirmed it is working on future generations of its Xbox console.

The computer software giant admitted new versions of its games console were in development, following reports it was planning to release a combined digital video recorder and games unit next year.

Technology magazine Red Herring, which reported the move on Tuesday, also said that the Xbox had made huge losses.

It quoted a source as saying that Microsoft had estimated it would lose $750m (490m) on the Xbox game console in the year to June 2002 - and a further $1.1bn (720m) in to June 2003.

Seamus Blackley
Xbox creator Seamus Blackley resigned in April
Microsoft has refused to comment on the financial forecasts.

But the company said in a statement: "Microsoft is committed to Xbox for the long term.

"We've made a substantial investment from a hardware standpoint and that investment is one that we remain committed to.

"We're continuing to see great demand for Xbox worldwide. We're on target to meet our fiscal year forecast of 3.5-4 million units.

Losses

"We are very pleased with our progress. Microsoft is in this business to win and we plan to do that."

The Red Herring article quoted author Dean Takahashi, who has recently written the book Opening The Xbox.

He compared the reported losses with the estimate given to Microsoft chairman Bill Gates in 1999 that the Xbox project could lose $900m (590m) over eight years.

The magazine said that Microsoft was losing some $150 (98) on each Xbox sold.

Red Herring also said that Microsoft engineers had been at work for about nine months on a project combining the company's UltimateTV recorder with the Xbox.

The new machine could be launched next year for a price of around $500 (325), said the magazine.

Microsoft is competing with Sony and Nintendo for a share in the global game market, which is expected to be worth $30bn (20bn) in hardware and software sales this year.

All three companies make losses on their hardware products, but make up those losses with sales of the more profitable software.

See also:

26 Jun 02 | Science/Nature
21 May 02 | Entertainment
15 May 02 | Entertainment
10 May 02 | Entertainment
02 May 02 | Entertainment
23 Apr 02 | Entertainment
04 Apr 02 | Entertainment
16 May 02 | Science/Nature
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Entertainment stories are at the foot of the page.


E-mail this story to a friend

Links to more Entertainment stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes