Despite dropping into the number-three spot behind Nintendo and Sony in the video game market, Microsoft says that it isn't throwing in the towel and might instead double its investment in the Xbox video game console. Microsoft Chief Financial Officer (CFO) John Connors told analysts in Scottsdale, Arizona, yesterday that the company isn't considering an exit strategy and will instead "double down and make it successful."
Although Microsoft isn't discussing numbers, analysts predict the company will spend more than $2 billion promoting the Xbox over 5 years. Last month, Microsoft revealed that its home entertainment division, which makes the Xbox, lost more than $175 million in the last quarter alone.
To bolster the Xbox during its second holiday season, Microsoft recently unveiled the Xbox Live online service, which lets customers play certain Xbox Live-enabled games with other Xbox users over a broadband connection. Several compatible titles shipped at the launch last month and more are due by the end of the year. Nintendo and Sony are also offering hardware to connect their devices to the Internet, but both companies lack the integrated online service that Microsoft offers.