Microsoft predicts Xbox 360 to become profitable by July 2006

Microsoft has taken the bold step of announcing that the Xbox 360 will become profitable by the start of the company's 2007 financial year, which begins in July 2006. While this is an admirable and ambitious target, some industry analysts are saying that it will be a difficult goal that would require the release of a popular new game in the following year:

"Getting to profitability will require a big-name software launch while withstanding a concentrated marketing blitz from Sony. Anything less could mean years of red ink ahead," said Matt Rosoff, lead analyst, consumer and corporate.