Microsoft's Xbox 360 has been around for eight holidays now, and while still a strong seller, sales are heading downward.
Microsoft said its Entertainment and Devices Division saw lower revenues and higher operating profits during the December quarter, driven by lower video game console sales.
The company said it shipped 5.9 million Xbox 360 consoles during the second fiscal quarter, down from 8.2 million from the same period a year ago. Despite the decline, Xbox 360 remained the top-selling video game console in the U.S.
The drop in unit sales comes as Microsoft is heavily rumored to unveil the Xbox 360 successor sometime in the coming months.
Revenue in the division, which houses businesses including Xbox and Windows Phone, were down 11 percent for the quarter to $3.8 billion, driven by the lower console sales. Microsoft also noted that a $380 million video game deferral also impacted revenues.
Operating income in the division was up 15 percent to $596 million, thanks in part to lower sales and marketing expenses.
Across the entire company, Microsoft reported $21.5 billion in revenue for the quarter and $6.38 billion in profits.
Lol. Nevertheless, during the first several months of the PS3, in Japan Sony was achieving a tie ratio of less than 1. How is this possible you may wonder? Because smart consumers were buying it as the cheapest, most advanced and of course most subsidized bluray player on the market. When each system is sold at a substantial loss, it certainly was in Sony's short term interest to sell less consoles and make more money. Or rather, sell less consoles, lose less money.
"Operating income in the division was up 15 percent to $596 million, thanks in part to lower sales and marketing expenses."
Sounds like they sell the 360 still for a massive loss. I don't know how this should work in the next generation, when they only managed to keep up with the competition during the current generation by subsidizing their console for 8 years in a row.
A new console will have much higher production costs, when MS chooses not to subsidize it, the price will be most likely north of $500, a price not enough people will be willing to pay. Sony has the same problem, so I still think, MS rumoured next Box will be more a 360 Advance doubling the power by remaining backwards compability, while I don't see Sony releasing anything at all.
I don't see that Sony has the financial ressources to launch another console, not after the Vita desaster. And the latest remarks vom Kaz doesn't sound like there will be any announcement of a PS4 soon.
I don't expect MS to announce anything at the e3 for 2013 either. I think, whatever they will announce won't be launched before black friday 2014.
Yeah I can understand that. But you don't think that they would at the very least create a set up much like Nintendo did for E3 2011. They use E3 2011 to show off the prototype Wii U with some idea games, then used E3 2012 as the launch E3.
I don't think they won't let this E3 go without a hint of something. I'm sure they want to set it up so that MS and Nintendo are competing head to head this time much like Nintendo set those two up to compete head to head this gen.
Another reason Sony is unlikely to announce a console this year is to dodge people avoiding their current console. The PS3 only recently started making them money, I don't think they are ready for a 3 year loss again, or at least their investors aren't.
The number is correct, you can find it also in MS earnings report:
http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/K pi/fy13/q2/Det ail.aspx
MS should stop making the 360 altogether. Let folks buy them off the used market. But keep publishing games.
Sounds like they sell the 360 still for a massive loss. I don't know how this should work in the next generation, when they only managed to keep up with the competition during the current generation by subsidizing their console for 8 years in a row.
A new console will have much higher production costs, when MS chooses not to subsidize it, the price will be most likely north of $500, a price not enough people will be willing to pay. Sony has the same problem, so I still think, MS rumoured next Box will be more a 360 Advance doubling the power by remaining backwards compability, while I don't see Sony releasing anything at all.
I don't expect MS to announce anything at the e3 for 2013 either. I think, whatever they will announce won't be launched before black friday 2014.
I don't think they won't let this E3 go without a hint of something. I'm sure they want to set it up so that MS and Nintendo are competing head to head this time much like Nintendo set those two up to compete head to head this gen.
"shipped 5.9 million Xbox 360 consoles during the second fiscal quarter, down from 8.2 million from the same period a year ago"
http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/K pi/fy13/q2/Det
ail.aspx