Well, they said it would happen and here we are: Microsoft's Entertainment and Devices division has turned a profit. Yes, the once festering black hole (or should that be a red hole) in Microsoft's side is now a gleaming diamond of success. Awful metaphors aside, the Entertainment and Devices division posted revenue of $1.929 billion and an operating income of $165 million. This is in comparison to $1.011 billion in revenue and a lost of $142 million during the same quarter last year. That's quite an improvement, one we're sure rests on the shoulders of a certain Spartan we know and love. It looks like Microsoft's money-bleeding gaming venture is finally off the ground. Now let's just see if they can keep it that way.
[Via Joystiq]
Reader Comments (Page 1 of 1)
10-26-2007 @ 1:52PM
Tony said...
This is in spite of the major loss on the RROD warranty? I wonder how they would have done if that never happened. Even with Halo 3, the fact that it happened at all is kind of surprising... They've not made a profit in that division for years from what I remember.
They said they'd be able to do it, but I still was kind of pessimistic. 27% doesn't sound huge, but for a company that size... that's a lot of money. I wish I got a 27% increase in my revenue lol.
This also includes Zune, apparently. I wonder if that had any impact, although I really doubt it lol.
Reply
10-26-2007 @ 1:53PM
TORO said...
I read this today, good for M$. And they said Master Chief couldn't push consoles, pff...I laugh at ur face
Reply
10-26-2007 @ 1:55PM
RandomHero said...
I am prob thank you Microsoft with out you my life would be L A M E. see you in the halo 3
RandomHero4507
Reply
10-26-2007 @ 2:10PM
David W. said...
keep it up! the better the profits, the more incentives they can give to sell consoles...the more consoles they sell the more games that come out...the more games that come out the more broke I am...wait... :( haha
Reply
10-26-2007 @ 2:17PM
erivera3 said...
Halo 3 is all powerful. This is good news, means they have some faith in their console gaming now and won't stop with just the xbox 360! Can't wait for Xbox720!!!
Reply
10-26-2007 @ 2:18PM
dunnypop said...
I hope M$ can really turn it up a notch with the momentum of Halo 3.
Unfortunately, I don't see the 1 million people online play Halo 3 each night :(
Reply
10-26-2007 @ 2:44PM
zlionsfan said...
@1: The RROD warranty stuff was charged to a different quarter, wasn't it? If so, this report would be one reason to do that: charge the amount you expect to lose in one place so that subsequent quarters aren't affected by it.
Reply
10-26-2007 @ 2:52PM
maniac0201 said...
MS stock up 8% today.
Reply
10-26-2007 @ 3:34PM
Arnie said...
@1: The RROD loss was written off last quarter so the profit for this quarter was solely because of Halo 3. Of course the move to black is going to continue and hopefully they wont be too greedy and move some of that money back into the quality games and strengthen up their next years release schedule.(Fable 2 FTW!!)
Reply
10-26-2007 @ 4:26PM
Churchill said...
Good now lower the hd prices. Please
Reply
10-26-2007 @ 4:32PM
lharmon said...
Next money maker?
http://www.imdb.com/title/tt0464037/
Reply
10-26-2007 @ 8:12PM
Brian said...
@ljarmon
I thought the Halo 3 movie was confirmed dead.
As much as I'd like to see it, it's probably better off this way. I'd hate to see Halo 3 get cinematically screwed, like Doom did.
Reply
10-27-2007 @ 10:23PM
GregA said...
Every time someone talks Halo movie I think of the last game I was into that got a movie... Wing Commander. Just say no to movie title games and game titled movies!
Reply