Yeah, I know I have an Xbox, and I'm even liking it to a small degree.

It's still nice that the inner Xbox Hater in me can see news like this and chortle. Just goes to show that even if you have the most technically advanced game system out there and a bucket of money, if you don't have good games, you will suffer.

Low Xbox Sales Harm Component Suppliers
Microsoft asked Xbox component suppliers to adjust their shipments since sales of the console do not live up to predictions. The company said it will end the fiscal year within the sales range originally forecasted, but in the bottom half of that range. Hence an adjustment halfway through the fiscal year "is appropriate."

Analysts worry over Nvidia, which is to experience a drop-off in chip shipments to Microsoft. The company suffered a $40 million decline over its revenue of graphics chips for the Xbox in the fiscal third quarter over the second quarter. Forecasts indicate that Nvidia will ship five million chipsets to Microsoft in fiscal 2004, down from about eight million year-over-year.


Xbox Losses Double
Microsoft's quarterly filing with the US Securities and Exchange Commission revealed that the losses from the Xbox console have doubled, compared to the same period last year. The Home and Entertainment division, which includes the Xbox and games, posted an operating loss of $348 million in the quarter on revenue of $1.28 billion. A year earlier it had revenue of $833 million and a loss of $180 million. The acquisition of UK-based developer Rare last September cost Microsoft $375 million, but is "immaterial to Microsoft's results of operations."