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Microsoft Q1 FY12 results: LIVE revenue up 7%, costs up 19%

Friday, 21st October 2011 06:48 GMT By Brenna Hillier

Microsoft has released its financial report for the quarter ending September 30, showing a rise in sales but a dropping off of profits for its Entertainment division.

AT A GLANCE

Microsoft’s Entertainment division posted sales of $1.96 billion, up from $1.75 billion year on year.

Profits came in at $352 million, down from $386 million year on year.

2.3 million Xbox 360 consoles sold, down from 2.8 million year on year; has been best-selling US console for nine consecutive months.

Overall corporate record-breaking quarter of $17.37 billion.

Microsoft posted an increase in overall sales for its Entertainment division. At $1.96 billion, it’s a jump of 12 percent on last year’s $1.75 billion.

Nevertheless, profits were down, with the division dropping $352 million in Microsoft’s coffers, a nine percent drop on last year, thanks to a 19 percent increase in costs.

Royalty fees paid to new content partners was a significant contributing factor; Microsoft singled out its new agreements as a highlight of the quarter.

Within the Xbox business, revenues were up thanks to an increase of seven percent in Live sales.

Despite a drop off in hardware sales, with 2.3 million Xbox 360 consoles shifted during the quarter as opposed to CY 2010′s 2.8 million, Xbox 360 took its place as top-selling hardware for the ninth consecutive month, and Microsoft highlighted Gears of War 3′s performance of 3 million sales in its first week alone.

Overall, the Microsoft corporate body achieved a record breaking quarterly revenue result of $17.37 billion, an increase of seven percent year on year.

Operating income, net income, and diluted earnings per share for the quarter were $7.20 billion, $5.74 billion, and $0.68 per share.

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9 Comments

  1. Joe Anderson

    “Despite a drop off in hardware sales, with 2.3 million Xbox 360 consoles shifted during the quarter as opposed to CY 2010′s 2.8 million, Xbox 360 took its place as top-selling hardware for the ninth consecutive month.” – In the US, PS3 is actually outselling 360 on a Worldwide basis and has been for quite a while.

    #1 3 years ago
  2. Tech-N9ne

    ^ That’s one of those myths. Where do you get you facts from?
    I live in the Netherlands and most people I know own an Xbox, when I worked for a big chain electronic store, we constantly sold more Xbox. Go figure.

    Anyways, I also love my PS3, but prefer my Xbox on many levels.

    #2 3 years ago
  3. Joe Anderson

    The only place 360 outsells PS3 is in the UK and US, everywhere else PS3 outsells 360. Japan/Europe etc. I thought that was a known fact.

    #3 3 years ago
  4. Gekidami

    @2
    So your evidence is that you know more people with a 360…

    Ok… But lets look at the actual sales figures, shall we;

    2007 (PS3′s launch year):
    http://sarcasticgamer.com/wp/index.php/2008/02/rothbarts-rant-80-microsoft-screwed-up.html

    2008 (360 sold more):
    http://www.ps3news.com/PC-General/sony-playstation-3-and-xbox-360-worldwide-sales-equal-in-2008/

    2009 (PS3 begins its streak):
    http://gamer.blorge.com/2010/02/05/ps3-outsells-xbox-360-in-2009-closes-gap/

    2010:
    http://www.psuni.com/ps3-outsells-360s-2010-with-three-months-spare-4171/

    2011 first quarter:
    http://www.gamespot.com/psp/hardware/psp/news/6325857/ps3-psp-best-selling-systems-of-june-quarter

    Mr. Anderson is correct, the words ‘In the US’ are missing.

    The only ‘myth’ is that the 360 sells more than the PS3, its one that no matter how many times it gets debunked, always returns.

    #4 3 years ago
  5. Blerk

    The fact that it’s taking far, far longer than it ought to have for the PS3 to pass the 360 in global sales suggests that they’re actually pretty much neck and neck on monthly sales at the minute.

    #5 3 years ago
  6. Lahanas

    Brenna can you give me a link to the full picture you use as a header in this post?

    #6 3 years ago
  7. Ge0force

    #2 Software sales indicate that there are lots more PS3-gamers in the Netherlands than x360-gamers. Top-10 software sales are dominated by PS3/Wii/NDS/pc.

    http://www.yourgamenews.nl/tag/verkoopcijfers-nederland/

    #7 3 years ago
  8. DaMan

    Do you have those links saved in a text file somewhere, Gekidami?

    Kaz called, he said you’re getting an extra pay this month.

    #8 3 years ago
  9. speedxl01

    I wonder how much percentage the XBL Gold membership subscription, represents on these numbers.

    #9 3 years ago

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