Microsoft Nears Xbox Profitability

REDMOND, Wash. -- Microsoft's(MSFT Quote) money-losing Xbox 360 will become profitable next year, says the company's entertainment czar.

Moreover, the entire Entertainment & Devices Division is headed for "sustained profitability" in the same time frame, Robbie Bach, the unit's president, said at the company's analyst day on Thursday.

That profit will have been a long time coming. The Xbox 360 and its predecessor have consistently lost money on a per-unit basis, and game software sales have not been strong enough to pull the group into the black. In the fourth quarter, for example, the Home and Entertainment group, responsible for the Xbox 360, grew revenue strongly, to $1.14 billion from $587 million the year before. But the unit also doubled its loss to $414 million. ...