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Microsoft's Xbox 360 division is seeing the profit

Compared to last year, Microsoft's Entertainment and Devices Division (the division that houses the Xbox 360) has pulled a metaphorical 360, going from major losses to major gains.

As part of their second quarter fiscal report, Microsoft revealed that sales from their Xbox 360 and Zune division rose three percent to $3.06 billion and was able to turn a profit. A profit of $357 million. Seeing a profit that high is in stark contrast with last year's financial numbers which saw the division losing $302 million. So, in effect, the Xbox 360 was able to reverse its losses and go up $650 million year over year. Not bad, especially for a Microsoft division that never saw a dime of profit in the original Xbox days. Congrats!

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Reader Comments (Page 1 of 2)

xenocidic1

1-25-2008 @ 9:35AM

xenocidic said...

it's because of teh haloz

Reply

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DjDATZ2

1-25-2008 @ 10:28AM

DjDATZ said...

buy teh haloz

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Mr Cool3

1-25-2008 @ 9:44AM

Mr Cool said...

it's because of t3h CoD4z

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xenocidic4

1-25-2008 @ 10:10AM

xenocidic said...

MGS didn't publish cod4zzzz

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Josh5

1-25-2008 @ 9:49AM

Josh said...

Hmm...a little game called Halo 3 couldn't have contributed to that at all :) Great job Microsoft! Keep bringing the good games and I'll keep emptying my wallet.

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Dr Ecksack6

1-25-2008 @ 9:52AM

Dr Ecksack said...

but its also because of the Mass Effectz (and blue lezboz)

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Soyle Mycelf7

1-25-2008 @ 10:00AM

Soyle Mycelf said...

Unfortunately, pulling a 360 would put them back where they started. I believe the term you are looking for (but not as thematically relevant) is 180.

(yes I have nothing better to do than pedantically point out mistakes like this)

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Jon8

1-25-2008 @ 10:12AM

Jon said...

Haha yeah. I was confused there for a little until I realized what he meant.

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Boff9

1-26-2008 @ 3:03PM

Boff said...

What if they pulled a 360 then Moonwalked? That'd work.

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Scott10

1-25-2008 @ 10:00AM

Scott said...

MS also turned a profit the quarter that Halo 2 was released. That was the only quarter they've done so until now.

Good to see them put two quarters together like this.

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Knuckles Dawson11

1-25-2008 @ 10:01AM

Knuckles Dawson said...

It would be 180°.

If they start losing money again, then it'll be 360°.

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cranium12

1-25-2008 @ 10:21AM

cranium said...

yes, it would initially be 180. but if they start losing money again it will be 180 the second time as well. or 540. tomato, tomato

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Knuckles Dawson13

1-25-2008 @ 10:30AM

Knuckles Dawson said...

Yeah, that's what I said: 180+180= 360 from the initial point of reference.

540 would be once they make profit after the hypothetical financial misstep.

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Larry *not allowed to say cheevo*14

1-25-2008 @ 10:31AM

Larry *not allowed to say cheevo* said...

Yeah, just change that one part to 180° and we'll be all good. You see, a 360° turn would be a complete circle.

...The more you know!

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Etchasketchist15

1-25-2008 @ 4:24PM

Etchasketchist said...

Geometry Wars!!

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Tony16

1-25-2008 @ 10:16AM

Tony said...

I thought this had been reported a few months back? That the entertainment division was already gaining a profit?

That's one of the things that made that "secret of the RROD" thing seem so odd, as the guy was claiming they weren't seeing a profit at all.

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DjDATZ17

1-25-2008 @ 10:36AM

DjDATZ said...

Yea...Their first fiscal quarter ended at the end of September...so because of Halo 3 they already saw a profit then. But since Halo 3 sold really really well in the rest of the actual year, then MS kept reaping the rewards from it into this past fiscal quarter.

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Mike18

1-25-2008 @ 10:39AM

Mike said...

I think a lot of things went into this profitability -

1. Halo 3 - it sold almost five million in three months.

2. Ads. You don't realize it, but each ad you see on the 360's dashboard represents an asston of money for MS - Cell phone companies, movie studios, and broadband providers all have a great big advertising stiffy when it comes to the 18-24 male demographic - the people in said demographic spend more money than anyone else - they also happen to make up the bulk of 360 gamers.

3. XBL gold - more subscribers means more cash in MS's pocket.

4. Microtransactions - MS gets a cut on all of them. ALL OF THEM.

I'm sure there's more, but I can't think of anything else at the moment.

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mattclarkie19

1-25-2008 @ 10:42AM

mattclarkie said...

Well I bought 15 games last year, so at £40 each I gave MS £600. Now I am living on Rice and Seetcorn.

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mattclarkie20

1-25-2008 @ 10:43AM

mattclarkie said...

Plus an additional £45 for the Vision Cam Live Sub pack. So I gave them £645.

As I type I am by a single candle.

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