Xbox Losses Became Xbox Billions

Microsoft lost an estimated $5 billion to $7 billion on the original Xbox, far more than the company expected when it entered the console market. The loss was reportedly two to four times higher than early projections, and Xbox chief Robbie Bach even wrote a resignation letter in case the failure cost him his job. Microsoft persevered and introduced the Xbox 360 as its next major console. Despite a $1.1 billion write-off for the Red Ring of Death hardware crisis, Bach later said the Xbox 360 generation still made Microsoft "billions."

Previous Fact Next Fact