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MS Q1 2010 financials: Xbox 360 business generates $165M

Friday, 23rd April 2010 00:38 GMT By Stephany Nunneley

cash

Microsoft has released its Q1 financials for 2010, ending March 31 and posted a profit of $165M thanks to increased revenue from Xbox Live and the Entertainment Division, despite a 12 percent decrease in sales of Xbox 360.

Entertainment and Devices division, which is the sector that includes Zune, and Xbox 360, only rose 2 percent YoY to $1.67B in revenue.

That’s still mighty rich, though.

Thanks to a decrease in the cost of Xbox 360, console sales accounted for $199 million, along with a decrease in manufacturing costs.  Still, sales for the console dipped 200K during the quarter, which is down 12 percent from 1.7M to 1.5M consoles sold YoY.

Software sales for both PC and Xbox 360 decreased 5 percent to $240M, thanks in part to consoles sales falling to 8.8M from 10M, which MS cutting the price of the console along will offering bundles was attributed to this.

In the end, the Entertainment and Devices Division doubled in profit by 242 percent to $851M compared to $249M during the same quarter last year.

Xbox Live revenue was a main contributing factor, and while sales of the Stimulus Pack last month were boast worthy, it came out on March 30 and MS’s quarter ended March 31. Therefore, MS said XBL revenue was due to lower manufacturing costs for Xbox 360, and the company cutting $60M (6 percent) of the fat off of marketing and sales costs.

It was also revealed that Xbox 360 has now moved over 40 million units since its release in 2005, compared to 31.4 million sold last year.

The company ended with $14.5 billion for the quarter overall, which is a 6 percent increase YoY, thanks in part to what it called stellar sales of Windows 7 and currency exchange rates.

Microsoft is very, very, rich. No doubt about it.

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8 Comments

  1. Robster1979

    XBOX LIVE = CASH COW

    #1 5 years ago
  2. Blerk

    Indeed. People who are holding on to the hope that it might become free just because PSN is are only fooling themselves.

    #2 5 years ago
  3. Gadzooks!

    We’ll be seeing a paid for PSN soon, which suits me just fine as I’d like PSN brought up to the standard of XBL and I don’t mind contributing to that.

    The chat and group gaming features of PSN need a lot of work, then maybe my group of gaming regulars might actually use it.

    But that just can’t happen unless it’s funded.

    #3 5 years ago
  4. Blerk

    I suspect that might not be a very popular point of view among most PSN users, Gadzooks! :-)

    #4 5 years ago
  5. Erthazus

    Yeah, to play multiplayer you need to pay. I just love these awesome *Pay to play* stuff. Love it.

    Microsoft started it, now Sony will end it. I still think that Sony will leave the FREE stuff they created and they will create a gold membership with features like Chat and other shit that stupid kids can’t live with out.

    People often say about crisis. Bullshit. I pay only for stuff that i can have at my hands. Even copies of games don’t justify it cost. If you really think about it. It’s just a plastic box with disk that cost around 10 cents to make with the shitty broshure and with software.

    #5 5 years ago
  6. The Hindle

    40m 360s sold, wonder what the Ps3 is at now hmm.

    #6 5 years ago
  7. Robster1979

    I’d be all for PSN subs if it brought it up to scratch. Right now it feels light years behind XBL.

    #7 5 years ago
  8. Gadzooks!

    “I suspect that might not be a very popular point of view among most PSN users, Gadzooks!”

    Probably not but that’s no concern of mine. My gaming group does a lot of online multiplayer and we dont stick to one game all night, so moving through games with a party and not being thrown out at each stage is very useful.

    Even more useful is keeping the chat going within that party. These things are just not possible on PSN. When we play online PS3 games we keep the 360 running for voice comms.

    It makes online gaming on PSN a bit of a chore so we always buy the 360 version of multiplats. Helps that they run better as well but that’s beside the point.

    Solo gaming with randoms works just fine on PSN though, so suits most people.

    #8 5 years ago

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