Tagged: loss

Atari posts losses, letting go of Cryptic

Atari hasn’t been financially strong for a couple of years now, and it seems it is taking a toll on its studios as well. In its latest fiscal year earnings report, the company announced that it is looking to sell Cryptic, the studio behind the superhero MMO Champions Online.

As it stands, the company reported a net loss of $8.8 million, which is, quite honestly, an improvement over its $27.5 million loss in the previous fiscal year. Interestingly, Cryptic alone was responsible for $7.5 million in losses this year.

Cryptic is currently working on a Neverwinter MMO and “Season 4” of Star Trek Online. The studio’s future is currently uncertain.

Xbox Division Brings In Losses of $1.8 billion for Microsoft

It comes as no surprise that Microsoft’s Entertainment and Devices Division, of which the Xbox is part of, has posted a $1.89 billion operating loss, a 47 percent increase from 2006’s $1.28 billion hit. Interestingly, their revenues are up 28 percent than last year, though it didn’t help them recoup losses.

As per Gamespot, who carries detailed numbers on this matter, the company shipped 6.6 million Xbox 360 units in the last year, up from 5 million in FY2006. Its current installed base is 11.6 million strong, the most in the current-gen console race. The billion dollar hit came from the company’s unprecedented Xbox 360 warranty announcement, which they extended to three years.

Although the company took a hit in this division, Microsoft made quite a bit of profit in its other divisions, seeing $14.7 billion of net income on revenues of $51.12 billion, a 15 percent increase over the prior fiscal year.