Xbox 360 drags down Microsoft profits

SOFTWARE COLOSSUS Microsoft made net profits of $2.98 billion on $10.9 billion revenues for its financial quarter ending March 31st 2006.

But steep costs related to the introduction of its Xbox 360 affected its results, and it cannot necessarily console itself that segment is getting better.

It spent a princeling's ransom on finding an extra manufacturer and paid more than it should have done for the bits and pieces inside the Xbox 360. The firm was forced to pump up the volumes of the Xbox 360 after generating demand that it found hard to supply at launch.

Other bits of the Vole's business went swimmingly, with sales of Windows and Office putting a smile on the firm's face. But Google continued to predate Microsoft's MSN division, something that won't stop the Vole from continuing to fight the good fight. It will plunge more money into MSN. µ