Microsoft stoic despite massive losses

If you were to judge by the PR rhetoric, you'd think the 360 was an unstoppable commercial juggernaut. As usual though, PR lies. According to Next-Gen, Microsoft's gaming division lost $1.26 billion US in the fiscal year ending June 2006. But that's acceptable, COO Kevin Turner tells the San Jose Mercury News. "People forget. Steve [Ballmer] reminds me it took seven, eight, or nine years before Windows was profitable," he explains. "People forget that. We're in it for the long term. This is a company committed to invest for the long term." Microsoft expects to turn the first profit for the 360 in 2008. That may sound dire, but know that Merrill Lynch predicts losses of up to $2.367 billion for the first three years of the PS3.