Saying that Halo 3 is going to be a big title is a no-brainer. The industry has seen many "big titles" in its lifetime, but few are quite as big as this though; analysts predict that Halo 3's success will no only set new industry records, but will also push Microsoft's gaming division into profit for the first time.

Ever.

For those not in the know, a degree of clarification is in order. Although Microsoft have never made a financial profit off of the Xbox division of it's company, this is in no way due to a lack of consumer interest. The original Xbox console and the current Xbox 360 format have always been sold at retail for a price below their manufacturer cost, in order to draw in as much consumer interest at as low a price as possible; the company has a more than substantial pool of money to draw from, which could essentially allow Microsoft to pursue console gaming indefinitely even with profit.

The company has predicted for a while now that the Microsoft's gaming division would being to turn a profit for the company in 2008, and it appears that Halo 3 will be the title to see the push into the green. Over 4 million copies of Halo 3 have already been pre-ordered by gamers in the US alone, and Goldman Sachs analysts Sarah Friar and Frederick Grieb predict that Microsoft will have shipped 4.2 million copies of Halo 3, the end of the month, the game's first week at retail. That many sales would account for one third of the 360's 11.6 million worldwide user base.

The first quarter of Microsoft's fiscal year ends five days after Halo 3's worldwide launch, and maths suggest that the game will net roughly $170 million in revenue to the company's gaming division, which would finally push the division into "slight profitability" for the quarter. This would be marked as the first time in the company's short gaming history that the division would pull in a profit for the company.

It's unlikely to see this momentum faltering any time soon, either. With the recent launch of the Xbox 360 Elite, titles such as Bioshock re-evaluting and redefining gaming as we know it, huge profile games such as Assasin's Creed and Mass Effect nearing release, and even triple-A titles like Grand Theft Auto IV planning to provide exclusive content only available on Xbox Live, Microsoft's gaming future, and the continued health of the Xbox 360, looks very bright indeed.

Tags : halo 3 : microsoft : profit : Xbox : Xbox 360

Comments

By: Corrine On: 05:09 Sep 24th, 2007 Offline	Yay! I actually feel happy for Microsoft, this is pretty cool for them. I think they deserve it this time around... I mean, to sell this stuff only to lose money? I didn't know that. laughs

By: deanogee On: 02:38 Sep 25th, 2007 Offline	Will Halo 3 sell? Yes. Many preordered. But will it be a great game compared to the greats that have graced the ages? Prob not.

By: Evren On: 11:00 Sep 25th, 2007 Offline	It doesnt really matter that much to MS, they make more than enough money doing everything bloody else. shrugs but it's nice to see that they might get into profit.

By: boa On: 10:14 Sep 26th, 2007 Offline	Microsoft know how to work, struggling along and letting people know you LOSE money for every console sold is good for business, especialy if you let it spread by word of mouth. BTW, for those that get a bit pissy about the cost of windows, how much do you think it cost to pay all those programers for the years it takes to make the OS? Or the continued free support? Or the fact a large chunk of their money gets sunk back into R&D? They're not the company they're cracked up to be, and they deserve a little respect, even better that it's my favourite hobby that might get it for them ^_^