X-Box becomes a losing proposition
The new X-Box game console will likely be a losing business for Microsoft in the first few years. It is not yet entirely clear whether profit is actually the goal. According to analysts, this is caused by the price reductions, which are also necessary to make the console attractive.
During an interview with Focus magazine, Steve Ballmer admitted that the X-Box is certainly not as profitable as Windows will be. According to analysts, the X-Box will bring in a loss of around two billion US dollars. Only around 2005 will it be back in positive territory. But only if today's market conditions do not change. Ballmer also said that the X-Box is more of an 'advertisement' for Microsoft and that it should make the company better known. The game console will be available in the US on November 15th. The start of sales in Japan is planned for February. The Europeans have to wait until Easter and then pay a full 479 euros.