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Xbox profits five years out

by - source: Tom's Hardware

A Merrill Lynch report projects that Microsoft Corp. will lose $2 billion on the Xbox game console before reaching break-even in about five years. Then, however, the report predicts profits at $1 billion a year. The Xbox will be launched this year about the same time as Nintendo Co. Ltd.'s new GameCube system. The same analyst forecasts that Microsoft will sell 5 million Xbox systems in its first year on the market, compared to 8 million to 9 million PlayStation 2's Sony Corp. has shipped since March 2000.


More information is at reuters.yahoo and bloomberg.com.

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