Microsoft hopes Xbox would start delivering profits starting next year

Microsoft hopes Xbox would start delivering profits starting next year

Microsoft Entertainment and Devices president Robbie Bach has said in a statement that the company believes that their Xbox division would become profitable by next year.

He said: “[The Xbox brand is] a business that will be profitable next year—we’ll make money next year and that will be the first time, which is pretty exciting. And then the next two or three years are the place where you need to make tracks, and the next two or three years are where you have to make money.”

Microsoft is likely to benefit from improved revenues from first-party Microsoft games, royalties from third-party games, Xbox Live subscriptions, Xbox Live Marketplace sales, and peripheral sales.

Bach added: “Game attach rate [is at the] highest level in history for a game console at this stage in the life cycle.” Game attach rate [is at the] highest level in history for a game console at this stage in the life cycle.”

Most gaming console manufacturers sell the console units at a loss to attract gamers to purchase the device. They then try to make money from services and games.

Microsoft has been losing money on the Xbox brand since it was introduced in November 2001. It’s about time that the division gives back the parent company something in return!