Analysts: Halo 3 will finally make Xbox division profitable
byRoss Miller||May 25th 2007 at 2:29pmMay 25th 2007 2:29 pm
Four analysts at Goldman-Sachs have predicted that Bungie'sHalo3 will rake in over $170 million in revenue for the quarter. The analysts also assert that the game will put the Xbox division in the black for its first quarter ever with just the first week of sales.
Other notes by the analysts:
The figure is based on estimates that 4.2 million copies shipped in the quarter and an installed user base of 13.2 million by September. That would mean Halo 3 would be purchased by nearly one-third of Xbox 360 owners.
It is assumed that Microsoft keeps 80 percent of the retail price on first-party titles.
Halo 2 sold 7.5 million in its first quarter of release, with 2.38 million on the first day. That amounts to 38 percent of the user base.
Recently Robbie Bach, president of Microsoft's Entertainment & Devices Division, stated that he expects the Xbox to be profitable next year. We have very little doubt that Master Chief can pull the Xbox brand out of the red for at least the first quarter or two, but can Microsoft fill the void with other titles and services once the momentum slows down?