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Microsoft ships 3.9 million Xbox Ones in launch quarter
Microsoft ships 3.9 million Xbox Ones in launch quarter
January 23, 2014 | By Christian Nutt

January 23, 2014 | By Christian Nutt
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    9 comments
More: Console/PC, Business/Marketing



Microsoft just reported strong second fiscal quarter results, with help from strong performance from the newly-launched Xbox One.

Microsoft said it shipped 3.9 million Xbox One consoles during the three months ended December 31. The company also shifted 3.5 million units of its aging Xbox 360 to retailers in the quarter.

More than 3 million of those Xbox One consoles were sold to consumers during the period, according to an earlier announcement.

For the three months ending December 31, its Devices and Consumer Hardware division, which houses the lion's share of its video game console business, saw revenues of $4.7 billion -- a significant year-on-year leap, compared with revenues of $2.8 billion for the same period in 2012.

"[...] Our Devices and Consumer segment had a great holiday quarter ... The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth," said CEO Steve Ballmer in the company's press release.

Overall, the company posted record revenue of $24.52 billion for the quarter, resulting in net income of $6.56 billion for the period.

UPDATE: In Microsoft's earnings call's Q&A session, one questioner observed that the increase in revenues from hardware roughly matched the increase in cost of goods for hardware -- implying that while the company may be selling lots of hardware it isn't generating much profit.

Microsoft chief financial officer Amy Hood essentially confirmed this would be the case for some time, saying: "We'll continue to be in launch mode for Xbox One... [and] add and expand markets over the course of the year. I would continue to think of our investment in being the leading console extending."


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Comments


Nathan Mates
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Surface tablets, which also had a sales boost, are in the same division, so breaking down the contribution for games vs tablets is obscured. Deliberately.

Christian Nutt
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Yep, it's tough. And the new divisions of the company also split out first party games and Xbox Live service revenue away from 2nd/3rd party licensing fees and console hardware revenues, which further confuses things, though I'm not sure that's intentional obfuscation and rather may reflect how the company silos things like services vs. hardware, etc.

Marvin Papin
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Number fusion : Financial pirouette to conserve growth at Wall Street, approximately the same thing than declaring "ship consoles" instead of "sold consoles". I think it's intentional and the evolution of MS according to their products
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(Win 8.1 and MS account linking obligatory to use Apps,
Trying to introduce quite massively Win RT and get back to Win 8 on tablets,
Xbox one and multimedia )
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consolidate my though.

Benjamin Quintero
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"shipped"...

John Flush
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Exactly. This is more of a statement of how well their "factories" are working.

Evan Combs
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I might not be looking in the right places at the right time, but I have never seen a press release from Microsoft (or Sony for that matter) announcing anything but shipped numbers. This seems pretty par for the course for most non-retail corporations. Retail sales numbers typically come from NPD or some other third party source.

Ricardo Hernandez
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@Evan Combs - "PlayStation 4 has sold 4.2 million units"

http://www.gamasutra.com/view/news/208159/PlayStation_4_has_sold_
42_million_units.php

:-)

Jason Daniels
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At this particular junction, when I sporadically see PS4s and XB1s in stores, and then see them sold out (PS4 more often), shipped is almost entirely synonymous with sold through. If we were seeing returns or huge stacks and always accessible availability of either console, it would be worth it to get into the semantics of shipped (to stores) via sold (to end users), but as of right now, everyone is shuffling from factory to store to consumer as fast as they can.

Ricardo Hernandez
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Is see Xbox One in stock at every GameStop/Target/Best Buy (Bay Area) but PS4 always is sold out.

Amazon has Xbox One in stock but no PS4's (as of right now and as of several weeks back to now).


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