Microsoft's Xbox woes continue as the company announced that sales of its game console fell 60% in the fiscal fourth compared to a year ago. Operating loss for this division of the software giant stood at $1.2 billion (remember, this is a loss). This includes a $1B+ charge against earnings for extending the warranty period for 3 years. In addition, the division lost its leader, Peter Moore, who departed to video game publishing giant Electronic Arts (ERTS).
On the competitive front, Sony announced a $100 price cut to be more in line with Xbox prices and of course, Nintendo's Wii continues to lead the pack in sales. Nintendo's appeal seems to be growing way beyond the core gamer audience--I know a lot of moms and dads, as well as grandparents, that are buying Wiis.