Analysts Say MS Will Lose on X-Box

Some analysts are predicting that it could take as long as five years for the X-Box to pay off for the Redmond Giant, as it is expected to take a whopping $2 billion loss on the system initially. Reuters reports the analysts are optimistic about the success of the system, but that it will not contribute to profits for Microsoft anytime soon.

MS will spend as much as $500 million marketing the console when it debuts later this year. It is expected around the same time that Nintendo's GameCube will launch.

Bloomberg reports that Microsoft may even delay the launch of the X-Box in Japan until early next year according to analysts. Delays could come from the lack of "home-grown" game creator support in Japan, although Konami is already on board.

Microsoft officials denied any claims of delay to News.com, saying that it was right on track to hit its original launch dates. To read the rest of the News.com article here. This delay could give Nintendo's GameCube time to plant itself in a hostile market where the PlayStation2 recently KO'ed Sega's Dreamcast.