The division of Microsoft that includes its Xbox 360 business saw its best holiday quarter on record, with roughly $4.24 billion in sales driven largely by the console and its games.
Its Entertainment and Devices unit reported sales of $4.24 billion, a 15 percent increase from the $3.6 billion it brought in during the same period last year.
This division includes all of the company's Xbox products, as well as Windows Phone and Skype. When put in perspective, the revenue from these products and services made up roughly 20.3 percent of the $20.8 billion from Microsoft brought in across all of its divisions for the quarter ended December 31, 2011. By comparison, Microsoft brought in $19.9 billion overall during this period last year.
Once again, the Entertainment and Devices division remained profitable, bringing in $530 million in operating income, down 28 percent year over year. Overall, the division's profits for the quarter made up just 6.7 percent of the company's overall profits of $7.9 billion, down from 8.2 billion during this period one year ago.
In particular, this quarter marked some very strong sales for the Xbox 360 hardware. Microsoft pointed out that it shipped 8.2 million Xbox 360 consoles during its second fiscal quarter, up from 6.3 million consoles shipped during this time last year.
Combined revenues from Xbox products grew by $322 million -- or 9 percent year over year -- and were driven by the increased sales of Xbox 360 consoles and rising revenues from Xbox Live, though this growth was offset somewhat by decreased sales for the standalone Kinect hardware.
Factoring in this latest fiscal quarter, Microsoft said it has now sold 66 million Xbox 360 consoles and 18 million Kinect sensors worldwide. In addition, Xbox Live now boasts some 40 million registered members, up 33 percent from this period last year.
Looking beyond its video game products, Microsoft also pointed out that revenues from Skype also helped bolster quarterly revenue for the Entertainment and Devices division. This is the first quarter Skype has factored into Microsoft's quarterly earnings, as it was officially acquired in October.
Revenues after all Expenses is the measure I think we all care about most? (Yes? No?)
Again... sold 66 million 360's? Is this the total Manufactured? Or the total Active Xbox 360 users? I believe at best its the former # which implies that after all double-attaches/refurbs/DoAs/resells, etc that the true active install base will likely be at best ~80% of that 66 million number.
40 million LIVE registrations? Doesn't tell us much about how many are Gold vs. whatever. How many are return/recurring subscribers and the like.
It's operating income, the article is very clear about it. The same goes for the $7.9 billion, they are the operating income as well (in fact it's $7.99 billion).
The net profit for the whole company is $6.62 billion, as usual no word about the net profit for the Entertainment and Devices division, so I agree with you, nobody knows, if the division is profitable.
Last years projection for this division was:
"Microsoft sees the division's growth continuing in the near future, with projected revenues for the 2011 fiscal year as a whole up 40 percent over 2010."
They managed a 15 percent increase in Q4 2011, while decreasing the operating income by 28 percent.
Microsoft managed to increase sales of XBox hardware by 1.9 million, the revenues rose by $320 million and the operating income decreased by 28 percent. If you take in consideration, that Kinect sales were for sure much lower then last year I would doubt, that they are selling Kinect at a loss, like they said shortly. To me it sounds more like they are (still/again?) selling the 360 itself with a loss.
Revenues after all Expenses is the measure I think we all care about most? (Yes? No?)
Again... sold 66 million 360's? Is this the total Manufactured? Or the total Active Xbox 360 users? I believe at best its the former # which implies that after all double-attaches/refurbs/DoAs/resells, etc that the true active install base will likely be at best ~80% of that 66 million number.
40 million LIVE registrations? Doesn't tell us much about how many are Gold vs. whatever. How many are return/recurring subscribers and the like.
The net profit for the whole company is $6.62 billion, as usual no word about the net profit for the Entertainment and Devices division, so I agree with you, nobody knows, if the division is profitable.
Last years projection for this division was:
"Microsoft sees the division's growth continuing in the near future, with projected revenues for the 2011 fiscal year as a whole up 40 percent over 2010."
http://www.gamasutra.com/view/news/32679/Microsoft_Sees_Record_Quarte rly_Revenue
s_On_Kinect_Xbox_Strength.php
They managed a 15 percent increase in Q4 2011, while decreasing the operating income by 28 percent.
Microsoft managed to increase sales of XBox hardware by 1.9 million, the revenues rose by $320 million and the operating income decreased by 28 percent. If you take in consideration, that Kinect sales were for sure much lower then last year I would doubt, that they are selling Kinect at a loss, like they said shortly. To me it sounds more like they are (still/again?) selling the 360 itself with a loss.