For Microsoft's fiscal year ending June 30 the division which includes the Xbox posted a $1.9 billion loss -- $1.2 billion of that was from the fourth quarter alone when Microsoft owned up to the Red Ring of Death issues. The division actually climbed 28% over the year and may even be profitable soon according to Microsoft entertainment division lead Robbie Bach, who sold millions in stock just as the Red Ring of Death warranty issue broke -- but, that's just a coincidence.
Microsoft says it shipped 6.6 million units of the Xbox 360 and now has a base of 11.6 million and manufacturing costs for the Xbox 360 continue to decline. They also say that revenue in games increased 19% to a total of $650 million. They're also expecting a blockbuster holiday with that little game called Halo 3 coming out along with some other highly anticipated titles. If it weren't for the RROD debacle Xbox wouldn't have actually had such a bad year. Now we wait for the price drop.