Tags: Revenues

Microsoft’s mobile phone, games and device business to stay loss making in 2007

Software giant Microsoft has forecasted that their mobile phone, games and device businesses would continue to remain loss-making operations next year.

The company expects this division responsible for products like the Xbox 360 gaming console to turn profitable in 2008.

Microsoft is investing a lot of money in a digital music player codenamed Zune to take on Apple iPod and iTunes this year and would be spending even more on marketing.

And they are also making a loss on every unit of Xbox 360 being sold in the market. Robbie Bach, president of Microsoft’s entertainment and devices division said in a statement on the next two years: “Fiscal ‘07 will be a loss. We think that turns to profit in 08.”

The company is also hoping that they would soon manage to take away a significant market share from Research In Motion Ltd’s Blackberry in the corporate mobility market.