PlayStation 3, Xbox 360 finances tell a tale of two consoles

24.10.2008
It's far too early to tell for now, but nevertheless there are indicators appearing Friday that hint Microsoft and Sony's console divisions are setting the table for an uncertain future.

The thing is, while one company enters the uncertain territory of a profitable console business, the other, known until now for its powerful, unfaltering brand, is entering what appears to be its most uncertain, darkest days yet. Also uncertain is what you, the gamers, should expect from your investments going forward. That's a whole lot of uncertainty going on.

For Xbox 360 owners, the future looks, in a word, "brighter."

On Thursday, Microsoft was quick to tout , which revealed a US$15.1 billion revenue record. Better yet for Redmond was the news that Xbox 360 shipments were up to 2.2. million units, compared to just 1.8 million this time last year.

The gains come at a good time for Microsoft, which is on the verge of releasing a major Xbox 360 interface update, called the (NXE). Featuring Mii-like avatars, a new menu system, and enhanced multimedia features, NXE is a risky play for the current Xbox 360 audience, but increased sales and console price cuts could help the update cement new non-traditional gamers in the Microsoft corner.

The recent success comes at a price, however. Earlier this year, Microsoft was forced to issue a costly multi-billion dollar restructured 3-year warranty program due to prohibitively high Xbox 360 failure rates. This was also the year that saw the console's year-long head start over the Nintendo Wii evaporate into nothingness.