Gamasutra is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
June 17, 2019
arrowPress Releases

If you enjoy reading this site, you might also want to check out these UBM Tech sites:

Microsoft Profits Up As  Halo 3  Revenues Hit

Microsoft Profits Up As Halo 3 Revenues Hit

October 25, 2007 | By Christian Nutt

October 25, 2007 | By Christian Nutt
    Post A Comment
More: Console/PC

Tech giant Microsoft has announced revenue of $13.76 billion for the quarter which ended September 30, 2007 -- a 27% increase over the same period last year. Profits were up to $4.29 billion from $3.48 billion in 2006.

The revenue of the Entertainment and Devices Division, under which the Xbox 360 (as well as the Zune and Windows Mobile) falls, increased 91% to $1.92 billion. According to Microsoft, PC and console game revenue in the quarter increased $895 million, or 148%, with some of the huge gains driven by Halo 3, which contributed around $330 million of revenue in that timeframe.

However, hardware also helped the company's revenues, as Microsoft shipped 1.8 million Xbox 360 units in the quarter, compared to 0.9 million in the same quarter last year. This led to a profit for the division of $165 million, compared to a $142 million loss last year.

Microsoft did blame the Xbox 360 for increased costs, however -- noting that there was a 99% increase in cost in revenue, or $584 million, primarily related to sales of the console, inventory write-downs and most notably the warranty costs brought on by the console's technical issues. In addition, sales and marketing expenses increased $49 million or 23% primarily related to Xbox 360, including Halo 3, and Zune.

"This fiscal year is off to an outstanding start with the fastest revenue growth of any first quarter since 1999," said Chris Liddell, chief financial officer at Microsoft. "Operating income growth of over 30% also reflects our ability to translate revenue into profits while making strategic investments for the future."

Related Jobs

Sucker Punch Productions
Sucker Punch Productions — Bellevue, Washington, United States

QA Manager
Insomniac Games
Insomniac Games — Burbank, California, United States

User Experience Researcher
Square Enix Co., Ltd.
Square Enix Co., Ltd. — Tokyo, Japan

Experienced Game Developer
Sucker Punch Productions
Sucker Punch Productions — Bellevue, Washington, United States

Lighting Artist

Loading Comments

loader image