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Quarterly Xbox Sales Up "Almost 30 Percent"

Tom Ivan's picture

By Tom Ivan

April 24, 2009

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Microsoft reported overall revenue of $13.65 billion for the third quarter ended March 31, 2009, a six percent decline from the same period last year and the first year-on-year revenue fall in the firm’s history.

Net income fell 32 percent to $3 billion, while operating income was up three percent to $4.4b billion, reports the Guardian.

The company’s Entertainment and Devices division (Xbox, Windows Mobile, Zune) fell from a profit of $106 million to a loss of $31 million. Despite the drop, Xbox 360 was the division’s strong performer, with console sales up "almost 30 percent" to 1.7 million units.

"We remain more cautious than most about the state of the world economy," said Microsoft's chief financial officer Chris Liddell. "While we'd all like to think the recovery will be soon and painless, we believe it will be slow and gradual."

hatay3131's picture
On April 26th hatay3131 said:

sohbet

NickgamertagO1's picture
On April 25th NickgamertagO1 said:

Gees, sometimes I wonder why I bother being on these forums.

Wall_E's picture
On April 25th Wall_E said:

You're right, 360 fanboys should stick to Rllmuk forum or Eurogamer!

grognard66's picture
On April 24th grognard66 said:

Some of you need to brush up on how to read a quarterly report and decipher corporate-speak. Zune is included in this division and is the culprit for the negligible loss this past quarter. The fact that that CFO Liddell singled out 360 as the only bright spot in earnings (for the entire company) is to send a message that it was the other products in this division dragging it down. You don't increase sales 30%, while at the same time cutting costs and take a loss - hence it's the other products in this division creating that loss. 360 is not MS' only product...

ShamanNY's picture
On April 26th ShamanNY said:

i know a way by which sales can increase 30% and your profit goes down
if you cut the price of your console it will sell more but you will get less for it... so there and i didnt even have to read an income statement.

I dont think the arcade makes money for MS, breakeven at best...

Does anybody have any insight on what it costs each console maker to put one in your house?
I would love to see that.

grognard66's picture
On April 27th grognard66 said:

The flaw with your logic is that they made a healthy profit every quarter since the price drop when sales shot up until this one. The other flaw is that MS has indicated, shortly after the announced the price drop, that they would still make a profit on each unit sold.
This division includes Zune, Windows Mobile and all of their PC accessory products (keyboards, mouse, etc.) and the downturn in PC sales combined with continuing struggles with Zune account entirely for this loss. The CFO doesn't publically single out one product for praise out of every MS product if it's the one causing losses. Don't any of you listen/read/attend shareholders meetings???
360 is not losing any money - the other products in this division are.

dreamhunk's picture
On April 27th dreamhunk said:

the costs goes up and down the range for the xbox 360 maybe between $500 to maybe $400

http://news.softpedia.com/news/The-Xbox-360-Costs-More-to-Make-than-to-S...

here is a link either way they are selling consoles at loss. only nentendo is making money on their consoles. They making $6.00 for each console they make.

dreamhunk's picture
On April 25th dreamhunk said:

well since the xbox360 has billions the xbox 360 is still in the red I am sure micro soft has yet gain back all that money they lost on the xbox 360

http://www.theinquirer.net/inquirer/news/173/1018173/xbox-lost-microsoft...

http://news.softpedia.com/news/Microsoft-Lost-7-Billion-on-Xbox-and-MSN-...

http://www.videogamesblogger.com/2006/10/13/microsoft-lost-126-billion-l...

billions of dallor lost on a console is alot of money, in a ression that is even worse!!!

dreamhunk's picture
On April 24th dreamhunk said:

the articles I have been reading all over the net is xbox360 is not doing well. By the way don't blame economy for this one! apple is out performing micro soft even in a bad economy and I wonder why?

http://news.vgchartz.com/news.php?id=3473
here is a link with proof there is more all over the net too by the way!

vgchicago's picture
On April 24th vgchicago said:

Up 30% is not doing well? What are your thoughts on PlayStation sales, which are seeing heavy declines?

Top_Dollar's picture
On April 24th Top_Dollar said:

You're right, the Xbox division isn't doing great. In fact they're in the red at the moment.

http://www.computerandvideogames.com/article.php?id=213689

DubsTF's picture
On April 24th DubsTF said:

The Xbox division over its lifetime will never be out of the red, however much Microsoft might on a quarter-to-quarter try to pretend otherwise.

grognard66's picture
On April 25th grognard66 said:

They're not pretending anything, you just don't understand business. The cost of entry into this market was written off in previous quarters. Not every company has the war chest available to enter this industry but MS did and decided to use a tiny fraction of their cash reserves to do so. This means that profit/loss is determined moving forward - not backward.
Also, if you want to play that game, it's worth noting that Sony's gaming group didn't realize a profit until well into the PS2 era using your formula for lifetime profitability (and if you factor in PS3 development costs and losses, to date, I believe this group may have tipped back into "lifetime loss" at this stage), so isn't it only fair to at least give MS the same number of years to earn a "lifetime" profit rather than saying it will never do so?

Cubemoss's picture
On April 24th Cubemoss said:

Your link leads to an article which lists the exact same information as this article, from the exact same source in the Guardian. Did you even read either article?