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

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.

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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Brenna Hillier avatar

Brenna Hillier

Contributor

Based in Australia and having come from a lengthy career in the Aussie games media, Brenna worked as VG247's remote Deputy Editor for several years, covering news and events from the other side of the planet to the rest of the team. After leaving VG247, Brenna retired from games media and crossed over to development, working as a writer on several video games.

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