Dallas, Texas 12/27/2013 (FINANCIALSTRENDS) – Microsoft Corporation (NASDAQ:MSFT) significant announcement this season has been its intention to stop support for its XP operating system.
The powerful Windows OS, which has since dominated the PC operating system will not get further support from Microsoft post April 2014. The OS has had a successful run since 2001 and nearly as successful as the original Windows version debut.
It however, will continue with its Xbox Offer.
There was quite some speculation that the giant technology and operating system maker, which has had the highest console-based gaming system – Xbox.
Xbox and its viability
History is replete with stories of Bill Gates failure to convince Sony Corp, the already successful console game producer in the industry back in the 1990’s, led to Microsoft Corporation (NASDAQ:MSFT) developing its own range and calling them the Xbox. Incidentally, Microsoft always had the hardware developed for this and now continues this hardware division 10 years hence.
Fortunately for the operating systems developer, it also has a strong gaming line developed. High on its list of earnings are the royalties it earns, while there are subscription –related services too are a strong part of the earnings.
Microsoft Corporation (NASDAQ:MSFT) also has Live transaction for the Xbox from which the company pays 24 million. Xbox is expected to bring in higher quality of services but the operational costs are forbidding. The number of units being sold is also on the fall. Only on an annual basis will there be profit for the company. The division is expected to break even as both the costs of building the Xbox and the costs of operating it could well see a drop in the following years. With Xbox One already on the ascendancy, Microsoft Corporation (NASDAQ:MSFT) is expected to continue with the gaming consoles, even as it improves connectivity and features the console will offer.