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Written by Austin Cox
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Monday, 09 July 2007 |
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Everyone knows that 2008 was to be the "big" year for the xbox division of Microsoft. It was going to be the first time Microsoft's entertainment division (containing the Zune and XBOX line) would actually turn a profit. This was great news for 360 gamers, because as gamers, we know that if a hardware company is making a profit, down the long line all the way to the publishers, we, the end user, see more and better games.
Then the Ring of Death came to the forefront of gaming news. With this, Microsoft reacted (slowly) pledging repair support that will cost the company in the area of 1.15 billion dollars. This could make some people worry. But if you look at the facts, you'll see why gamers, as well as MS stock holders have nothing to fear. Microsoft has already written off in fiscal 2007 the costs of repairing consoles for the next few years. Now while this is good news, because it means MS was prepared, it does beg the question, "How long were they planning this?". That's a-whole-nother story we'll cover later at XF. Besides planning ahead, the news of the new 65nm chips that are going to be in the 360 is finally coming to light. The chips will run cooler resulting in less overheating and hopefully no overheating at all. The best part about these new chips is the fact that they cost less to produce. Taking this into consideration, that can lead some to believe a price cut is in the near future for the 360. So we're left to assume that all of this will result in more systems being sold due to the extended warranty and newer, cooler running, more reliable systems. This of course means MS will make a profit and continue to pursue the the video game console market and invest in the XBOX line. All of this adds up to the end user, you, getting more great games. And isn't that what it's all about? DISCUSS IN XF FORUMS
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