Xbox Division Posts Q1 Profit

Soulja

Soulja

Soulja

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Microsoft posted unaudited operating income for its first quarter ended September 30 of $165 million in the Entertainment and Devices Division, compared to a loss last year of $142 million.

Microsoft has been reiterating that its Xbox business will be profitable throughout this entire fiscal year, a feat yet to be seen in Microsoft's videogame business.

Strong demand for Halo 3 and Xbox 360 hardware drove the division’s numbers during the quarter, according to Microsoft. In its first day, Halo 3 in the US alone generated $170 million in sales when it launched September 25. First-week sales were $300 million globally, as the Bungie-developed title sold 3.3 million units in the US during its debut month, according to NPD Group.

Revenues for the division were up 91 percent to $1.93 billion.

Overall, Microsoft revenues were up 27 percent year-on-year to $13.8 billion, beating the guidance of $12.4-$12.6 billion. Operating income was $5.9 billion, similarly exceeding the guidance of $5.0-$5.2 billion.

During the quarter, Microsoft said it sold 1.8 million Xbox 360 consoles, with record attach rates during the quarter in the US.

“We feel very good about our position going into the holidays,” said CFO Chris Liddell regarding the games business during a conference call.

Also part of the Entertainment and Devices Division is the Zune music player, which we will see at the new lineup this holiday season.

Microsoft expects total company revenues in fiscal 2008 to be $58.8 billion to $59.7 billion, with operating income of $23.3 billion to $23.7 billion.
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http://www.next-gen.biz/index.php?option=com_content&task=view&id=7686&Itemid=2
 
Wonder if all the MS fanboi's who criticised Nintendo for making a profit will do the same now for Microsoft? :p
 
Dont think it was to surprising, that was partly why all the money for the 3 year warranty was put onto to last year/ quarters results. They knew they had to start posting a profit at some point and this was probably the biggest quarter that the Xbox/360 has had with the release of mutli million sellers BioShock, Madden 08 and Halo 3. With all the increased money from IPTV and big selling games on the Games for windows brand it looks like there heading in the right direction, be nice to see how long they can keep it going for.
 
SiD the Turtle said:
Haha!

So was this period Q1 for them? Makes it a bit confusing when they talk about things being released in Q3, when is Q3?!
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Yeah, I thought that Q1 was April or May onwards, neither of which would be finishing now.

I think when they refer to video game releases though they use Q1 Jan-Mar, Q2 Apr-Jun etc. since Q4 is "usually" the Chirstmas releases. It may also differ depending on where you read it.
 
so how many quarters is it going to take to make profit past the xbox 360's costs? such as buying game dev's and the 3 billion they put into repairs/refurbs?
 
scorza said:
Wonder if all the MS fanboi's who criticised Nintendo for making a profit will do the same now for Microsoft? :p
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I'm getting quite tired of your anti-MS pointless posts. You never offer anything constructive and whilst happy to throw fanboi comments fail to realise you're fundamentally just trolling.

I know a lot of people who think the Wii is fundamentally too expensive for what it is. Take nothing awy from Nintendo though as they're playing the market as they should and making their shareholders lots of money.

I know quite a lot of PS3/PC/360 owners who feel the same way. Doesn't make anyone a "fanboi'. :rolleyes:
 
Am i the only person that doesn't particularly care if MS is making profit through the 360? Aslong as they keep making games for the thing (and developing the next one!) i couldn't care less. We all know MS have got PLENTY of cash to throw in to things, and at the moment getting a box in your living room is their priority.

go MS!
 
Is there some wrong with the P word all of a sudden?

If all three lose money WE lose out - WE need a healthy market to persuade all three big players to work hard on development.

1 Player= Monopoly, sky high prices and very little inovation.
 
Chris1712 said:
Am i the only person that doesn't particularly care if MS is making profit through the 360? Aslong as they keep making games for the thing (and developing the next one!) i couldn't care less. We all know MS have got PLENTY of cash to throw in to things, and at the moment getting a box in your living room is their priority.

go MS!
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I want them to profit as it:

a) ensures they stay in the market
and
b) gives them more resources to pump into the brand and improve it, they're more likely to spend profits in the section to reinvest rather than bring in resources from other sections. :)
 
Re reading my post i suppose it is better that they have to work damned hard to make money - as you dont want an EA scenario(zero inovation=maximum profit, although even they have chaged this year)
 
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