Microsoft game, device unit sees loss in '07
Microsoft forecast another year of losses at its mobile phone, games and device business before turning a profit in the business year ending June 30, 2008.
Microsoft said investments for its new "Zune" media player and another year of losses at its Xbox game unit will continue to weigh on the entertainment and devices unit's earnings this year. The division posted a loss last year.
The entertainment and devices division encompasses much of Microsoft's consumer-oriented products, such as Windows-based smartphones, the Xbox 360 game console and its upcoming "Zune" media player, but it has not been a consistent earnings driver.
"Fiscal '07 will be a loss. We think that turns to profit in 08," Robbie Bach, president of Microsoft's entertainment and devices division, said at Microsoft's annual analyst meeting.
The software giant said it will invest "hundreds of millions" of dollars to develop and market Zune, due to hit the market later this year.
Zune's differentiating feature from Apple's iPod will be built-in Internet connections that allows users of the devices to connect with their friends and other music fans.
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