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Games Industry Wire

Halo 3 To Boost Xbox Division into Profitability

by Kris on May 31st, 2007

According to Goldman-Sachs this falls Halo 3 blockbuster will finally make Microsoft’s Xbox division profitable. According to the report the first week of the release will boost their profits by $170 million, giving them a profitable quarter for the first time in its history. The figure may even be low by as much as $50 million giving them plenty of room for healthy profits.

For those who are unfamiliar, console manufacturers produce consoles and sell them for under cost, making money back on the markup of games. Current predictions estimate 1/3 of all Xbox 360 owners will purchase the game.

According to GameSpot, Microsoft has been touting 2008 as a turning point not only for the Xbox division but the entertainment as a whole so a profitable fall-winter quarter should significantly influence the company fulfilling the prediction next year.

POSTED IN: Halo 3, XBox 360

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