Recently, Microsoft gave their investors exactly what they wanted. They handed over their Q1 2009 fiscal results (MS's fiscal year starts in June) to hungry investors and, lo and behold, the Xbox 360 division turned a profit!
The Entertainment and Devices Division (EDD) - the division that houses products like the 360 and Zune - boasted an operating income of $178 million, up from last year's $167 million, and an overall revenue increase of 9%. Though, technically, the 360 wasn't the big bread winner as other products in the EDD accounted for $216 million in sales. Microsoft also revealed that lifetime Xbox 360 sales have reached 22 million, which is 2 million shy of the original Xbox's install base. Golf clap for team 360.
[Thanks, Scott O.]
Reader Comments (Page 1 of 1)
10-24-2008 @ 10:18AM
Colin said...
FYI
Explanation of Net Income up, but total revenue falling:
"EDD revenue decreased primarily due to decreased Xbox platform and PC game revenue, partially offset by increases across other EDD product revenue. Xbox 360 platform and PC game revenue decreased $331 million or 22%, primarily as a result of the $330 million of incremental revenue from the launch of Halo 3 in the first quarter of fiscal year 2008 and decreased revenue per Xbox 360 console as a result of price reductions during the past 12 months. We shipped 2.2 million Xbox 360 consoles during the first quarter of fiscal year 2009, compared with 1.8 million Xbox 360 consoles during the first quarter of fiscal year 2008. Other EDD product revenue increased $216 million or 51%, led by increased sales of application software for Apple’s Macintosh computers, the Zune digital music and entertainment platform, and mobile and embedded device platforms.
EDD operating income increased primarily due to decreased cost of revenue and sales and marketing expenses, partially offset by increased research and development expenses and decreased revenue. Cost of revenue decreased $251 million or 21%, primarily driven by decreased Xbox 360 manufacturing costs. Sales and marketing expenses decreased $27 million or 10%, reflecting a decrease in product advertising and bad debt expenses. Research and development expenses increased $145 million or 46%, primarily reflecting increased headcount-related expenses associated with the Windows Mobile device platform, driven by recent acquisitions.
For the remainder of fiscal year 2009, we expect revenue to be flat or to decrease relative to the prior fiscal year due to year-over-year variations in launches, volumes, mix, and prices across our portfolio of products and services. We expect sustained profitability for fiscal year 2009. " - MICROSOFT 10-Q Filing 10/23/2008
Good stuff.
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10-24-2008 @ 10:33AM
vahdyx said...
Congrats! More than what sony can say right now
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10-24-2008 @ 10:52AM
Peter said...
Ohhhh, i had to comment, Gates doing the profit robot ....... Pure fun ;-) made my day. - thanks
The2ofus
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10-24-2008 @ 11:04AM
Dustin Burg said...
profit robot FTW! ;D
10-24-2008 @ 10:56AM
vahdyx said...
Gates needs to look less nerdy! Get some protein in his diet and a personal trainer and a hair cut and contacts!
He'd look like a bad ass nerd!
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10-24-2008 @ 11:58AM
Mcfail said...
I'm doing the profit robot right now!
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10-24-2008 @ 6:08PM
Jonman said...
The Microsoft board was underwhelmed by Gates' rendition of "I'm a little teapot".
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10-26-2008 @ 3:22AM
Edwin said...
Real reason why, is because most 360 owners' consoles rrod and did not want to wait on MS and just simply purchased a new one or sending $100 to MS so they can fix "e74" errors so of course they going to be profitable and sell more 360s ...Sorry guys had to vent my 3rd xbox just rrod and no GOW 2 till its fixed.
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