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  *  

  Xbox 360 Profitable By July?
Time: 15:44 EST/20:44 GMT | News Source: *Linked Within Post* | Posted By: Chris Castellaw

Microsoft executives have promised that the Xbox business would become profitable by FY’07, which begins in July 2006. Many of the pieces are in place: Microsoft beat Sony and Nintendo to market with an impressive piece of hardware, has enlisted many new third-party publishers and developers (particularly important in Japan, where the first Xbox was a dud), and has more than two million paying customers for Xbox Live where its competitors are still figuring out their online strategies. Most important, Microsoft is committed to breaking even on the console over its lifecycle, leaving plenty of room to profit from games, Live subscriptions, hardware peripherals, and downloads. In 2006 Microsoft will have to justify the console’s high price (or lower it to put price pressure on Sony), come up with the “must have” game title that was missing at launch, and prove that early shortages and glitches are temporary and solvable problems.
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