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Microsoft Xbox emerging as a viable business

Time: 00:00 EST/05:00 GMT | News Source: Reuters | Posted By: Chris Hedlund

Strong sales of the Xbox during the holidays and a widely-expected successor to it this year are making it easier for Microsoft Corp. to make the case that its video games business will help drive growth. After sinking an estimated $2 billion into the Xbox, the world's largest software maker said on Thursday its Home and Entertainment division, which includes Xbox, reached profitability on an operating basis for the first time since development of the video game machine began about 5 years ago. Microsoft said Xbox revenue increased 20 percent in the last three months of 2004 due to the introduction of "Halo 2", the successor to the best-selling Xbox game. The Home and Entertainment division reported an operating profit of $84 million on revenue of $1.41 billion, which grew 11 percent.

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#276 By 4240821 (195.208.3.68) at 11/17/2024 5:45:24 AM

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