Morgan Stanley Analyst Predicts Xbox Losses For Microsoft Until 2004

Mary Meeker, an analyst at Morgan Stanley, told her clients in a recent note, "We believe that Xbox could lose around ($1 billion) ...before breaking even in (fiscal 2004) if the product is reasonably successful." Microsoft has already announced that its initial marketing campaign for the Xbox could top $500 million. The Xbox launches in the U.S. on November 15 and will be priced at $299.