Microsoft increases Xbox 360 sales target

Daisuke Wakabayashi reporting for Reuters:

The world's largest software maker raised the bottom line of its Xbox 360 sales target range for the year ending June 30 to 5.0 million to 5.5 million units from an earlier range of 4.5 million to 5.5 million.

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Microsoft executives said on a conference call with analysts that the company plans to continue to spend heavily to boost Xbox 360 production. Those manufacturing costs are expected to again crimp the bottom line at its home and entertainment business segment in the fourth quarter.

The home and entertainment division, which accounts for about 10 percent of Microsoft's total revenue, posted an 85 percent rise in third-quarter sales to $1.06 billion. Losses at the division widened to $388 million from a $175 million loss a year ago.