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Roger Ehrenberg of Information Arbitage takes a look at the financial black hole that is the Xbox and the Xbox 360, part of Microsoft's Home and Entertainment division. The H&E group, which also includes the Zune, IPTV and other products, has produced $5.4 billion in operating losses over a five year period. Ehrenberg doesn't see the 360 turning the group's fortunes around short of a "tectonic transformation."
Calling himself a personal fan of the console—he uses "awesome" and "rocking" to describe the 360—Ehernberg looks at the Xbox business, from an investment standpoint, as nothing short of a "disastrous endeavor" for the company and paints a bleak picture of the Xbox 360's future based on its below-original Xbox performance in Japan
He also points out the missed goals and wonders when Microsoft will finally, if ever, give up on sinking billions into the business. Looking at predictions from Xbox 360's March sales, it appears things are looking up for the console in the States, but the thing is stillborn in Japan.
It's an interesting read and just goes to show why, now, more than ever, Microsoft needs your extra Microsoft Points. Go on, do your part and snap up some overpriced horse armor.
When Will Microsoft Own Up to the XBox 360 Bomb? [Seeking Alpha]
