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Microsoft Q2 FY14: Xbox One ships 3.9 million units, Xbox 360 3.5 million

Thursday, 23rd January 2014 21:05 GMT By Stephany Nunneley

Microsoft has released its financial statement for Q2 fiscal year 2014, announcing revenue of $24.52 billion for the quarter ended December 31, 2013. The company sold 7.4 million Xbox consoles “into the retail channel” including 3.9 million Xbox One consoles and 3.5 million Xbox 360 consoles.

The firm’s revenue was up from $21.46 billion reported during the same period in 2012. For the six months ending December 31, 2013, the firm reported $43.05 billion in revenue, compared to $37.46 billion year-over-year.

Net income came in at $6.56 billion with an operating income of $7.97 billion.

The Devices and Consumer Hardware division, which houses Xbox, reported $4.7 billion for the quarter compared to $2.8 billion year-over-year, growth of 13%. On a six-months basis, the firm reported $6.2 billion compared to $3.9 billion YOY.

“Our Commercial segment continues to outpace the overall market, and our Devices and Consumer segment had a great holiday quarter,” said Steve Ballmer, chief executive officer at Microsoft. “The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth.”

“We delivered record revenue as demand for our business offerings remains high and we made strong progress in our Devices and Consumer segment,” said Amy Hood, chief financial officer at Microsoft. “These results reflect our focus on execution, cost discipline, and long-term shareholder value as we continue to drive the strategic transformation of the company.”

During a call to investors, Microsoft reiterated Xbox One’s early sales, noting 3.9 million sales across 13 launch territories in just over five weeks on sale. Referring to NPD data, it highlighted Xbox’s 46% market share in North America in December 2013, and said it’s working to increase availability of Xbox One globally.

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35 Comments

  1. bradk825

    Wow interesting, I didn’t expect last-gen hardware to be selling nearly at par with the new gear. I didn’t pay very close attention during the last upgrades, was it like this before?

    Hey, I got promoted to comment #1 when the spambot was deleted, woot woot.

    #1 11 months ago
  2. KAP

    You gotta love Microsoft, LOL
    They should honestly, shut the fuck up for a while after this constant media shit..

    #2 11 months ago
  3. Pytox

    but does moves = sold?

    #3 11 months ago
  4. thegrimmling

    @3 moved units does not mean sold units.

    Just go to any store and look at the piled-up overstocking of XBone compared to the empty space were PS4 is sold.

    #4 11 months ago
  5. Stephany Nunneley

    @4 Yes. Moved means sold. Usually. If not it would have said shipped.

    “The company sold 7.4 million Xbox console units into the retail channel, including 3.9 million Xbox One consoles and 3.5 million Xbox 360 consoles.”

    Let me clarify this a bit more in the post.

    #5 11 months ago
  6. mightyhokie

    @2

    yeah. they shouldn’t tout their success. especially to investors. maybe you should start your own company and compete with them. just make sure you keep everything very, very secret. smart.

    #6 11 months ago
  7. dtyk

    Moves typically is a bulk number of shipped units, majority of which are sold (or I sure hope so).

    It’s just a company’s way of beating around the bush to shareholders, much like how Sony reports its Vita numbers (Vita + psp moved… etc).

    You gotta remember, there’s been talks about selling off the Xbox division depending on who becomes the next CEO. They need to pad their numbers to make a good case for the division.

    Microsoft as a company has been making good progress financially as of late, which is good news for all gamers.

    #7 11 months ago
  8. Stephany Nunneley

    @7 Like I said above “usually”. I clarified it more in the first line.

    #8 11 months ago
  9. dtyk

    @Stephany,

    Oh yeah no worries. I actually didnt’ see your message before I wrote the post. Don’t worry Steph! I’m a big fan of you and Dave. :)

    Half no homo.

    #9 11 months ago
  10. Stephany Nunneley

    @9 Oh no I am right with you. I am not much on evasive wording for the sake of blowing smoke up the market’s buttocks. :D

    #10 11 months ago
  11. OlderGamer

    Well I am no sony or MS fanboy, but every time I go to a store I see X1s on the shelf, and zero PS4s. Gamestop announced they now had PS4 stock…they do and they are magicly sold out of the stand alone unit. You can only buy it if you spend 600usd or more on a bundle. They have X1s for sale as single units.

    Say what anyone wants, but what it looks like to me is that MS just aren’t selling thru to the customers at the same rate as Sony. I think that if Sony had systems sitting on the shelf they would have been able to sell a lot more of them. X1 is limited by consumer demand where as PS4 seems limited by retail supply.

    A friend of ours is a Manager at the towns local Gamestop. She tells my wife and I the same thing. She has a stack of X1s in the back room, while being sold out of PS4s in the store.

    But all companies spin numbers. Just the way it goes. And really it doesn’t mean anything.

    #11 11 months ago
  12. dtyk

    Agreed with Older Gamer’s last statement.

    These numbers aside from those interested in fanboy ammunition, doesn’t mean much to the average end users. It’s written for investors and financial institutes.

    #12 11 months ago
  13. Stephany Nunneley

    @11 & 12 – :D Imagine a layman trying to make sense of GAAP and Non-GAAP? My aunt is a stockbroker and she hates that stuff. :)

    Anyway, to avoid any more confusion I changed “moves” to shipped in the headline. The first line is still the same and self-explanatory.

    #13 11 months ago
  14. bradk825

    @11 Here in NB Canada my brother in law waited too long to pre-order and finally got his XB1 last week. I am thinking they didn’t do the best job of deciding WHERE to move those consoles, some retailers are still doing waiting lists. He tried EB Games, Futureship, Walmart, nobody had one until he finally got one last week.

    #14 11 months ago
  15. dtyk

    @14

    Aw sucks. :(

    I’m in Vancouver, and there’s plenty of XOne’s here. The PS4 on the other hand is still hard to come by.

    #15 11 months ago
  16. OlderGamer

    My wife was able to track down a PS4 for xmas(helps getting a call when our local store was receiving a shipment). She would have had zero problems scoring a X1. I didn’t want either one, wanted to wait a few months(I have the PSN+ freebies and nothing else). I wanted a Vita or 3DSxl lol.

    #16 11 months ago
  17. Cort

    Amazon UK VG bestsellers chart (updated hourly):

    01. PS4 + KZ3
    02. PS4
    29. PS4 + Knack
    43. PS3 + GT6
    49. XBox One
    65. XBox One + FIFA 14
    78. WiiU

    That’s really gotta hurt.

    #17 11 months ago
  18. Stephany Nunneley

    @17 Cort! Where the HELL have you been? <3

    #18 11 months ago
  19. sebastien rivas

    Ok, ok, ok, bring it to 399.99 and I ll get one in spite of ny anymosity toward hardware choice and config.
    No, it’s not about fanboyism, snob’ing, or else categorisation but as a general feeling, I don’t want to see xbox gone even if it means spending money for a box I ll probably not use at all, yet 499.99… no can’t do.

    #19 11 months ago
  20. Cort

    @18 Work and family have been crazy so gaming is taking a back seat.

    Thanks for the love; most unexpected. Right back atcha. 8^)

    #20 11 months ago
  21. kmcroc

    Make that money, sell them consoles .

    #21 11 months ago
  22. dtyk

    Mo moneh mo bitches. But really though, competition is good. Makes for better products in general for consumers.

    #22 11 months ago
  23. Cort

    One good thing for MS is that Titanfall is pre-ordering well ahead of everything else. I’m surprised there’s no bundle on offer.

    #23 11 months ago
  24. Arcnail

    Those numbers are pretty impressive, didn’t think either would sell that much to be honest.

    3.9 million in 5 weeks?

    .. and when you go to the store and see Xbones on the shelf and no PS4s, could it be because MS is keeping up with the demand and Sony isn’t?? Serious question, I own nether and don’t care who ‘wins’.

    #24 11 months ago
  25. Dragon

    And this 3.9 million number is the only one that is a certainty. No company can give a perfect “sold to consumer” number. However, they can easily give numbers “sold to retailers” easily.

    On numbers, as expected from MS. Very good.

    #25 11 months ago
  26. thegrimmling

    @18 I guarantee that if you call 10 stores in your area, every one of them will have XBone and pretty much none will have PS4.

    Microsoft is using “moved” as “Shipped” to stores, not what was sold to customers.

    I live in Dallas, a big gaming market and every store I have visited has had backrooms and storage trailers filled with XBones and been sold out of PS4s.

    I don’t own neither of the systems yet, but PS4 does not reside on the shelf for very long and XBone is like London with rats.

    #26 11 months ago
  27. antraxsuicide

    @27
    The PS4 can’t stay on shelves because there aren’t as many of them. The demand for both is relatively the same. The only difference is MS scaled their launch for fewer territories to make sure they had supply.

    I assure you, the X1′s you see on shelves aren’t the same. The sold units just get replaced immediately instead of having to wait weeks for a shipment from across the planet. If you look at the shipped numbers for both consoles, the PS4 hit 4.2M units shipped. That’s not that many more than 3.9M. If I were at Sony, I’d be worried that the supposed “distant” 2nd place was right on my heels in fewer territories.

    #27 11 months ago
  28. thegrimmling

    @28 That was Sony’s sales through December 28th, not up to current sales.
    Now as for how many have been manufactured, no one can say who has made more so far. I have not seen any recent numbers released on that. But I assume both companies are making them as fast as they can right now.

    It just seems odd that 2 months after launch, XBone is the only system that can always be found on the shelves. Most systems in their launch window do not simmer down that fast….. Except for Wii U.

    Anyways, it is WAY too early in this generation to even say there is anyne “winning”. The only thing we know is that Nintendo is losing.

    #28 11 months ago
  29. fengato

    Regarding the 360 sales in the period, here in Oz MS ran a cash back promo ($100 back) if you got it within a week just after Christmas. Got one of the latest slims for around $70 USD. Were there offers like in this in other territories?

    #29 11 months ago
  30. Henry

    Why try to guess how many of those 3.9M X1 are actually sold to consumers?

    Didn’t M$ already announced the “sold to consumers” figure is 3M?
    http://news.xbox.com/2014/01/xbox-one-january-thank-you

    #30 11 months ago
  31. mistermogul

    MS are the masters of dressing shit up to look better than reality.

    I know all companies do that, it’s just MS are great at it!

    @30 – didn’t see any promo like that in the UK…

    #31 11 months ago
  32. NiceFellow

    @31 quite correct – although this release follows the 3 million so they will have sold a few more through to consumers now but it’s clear from the many confirmed reports of readily available inventory that they haven’t sold through the 3.9 shipped yet.

    Going by the numbers released what we can see now is:

    XB1 sold through just over 3 million units in about the same time PS4 sold through 4.2 million units

    PS4 seems to lead everywhere (just by a smidgen in US but comfortably everywhere else) except some outliers like Brazil due to high import duties driving up the cost above XB1.

    XB1 has reached end of early adopter and peak trading demand and is now pretty much in stock everywhere and has reverted to stable sales – looks like that early demand number was the bulk or most of the 3 million which is pretty good.

    PS4 has not reached end of early adopter peak even though peak trading period is past. It’s still selling out pretty much as quickly as stocked. Last known number was 4.2 million so it looks like the early demand volume for PS4 will be at least 4.5 million in comparison and may be even higher

    Bottom line MS probably needs to ramp back production before they get caught over shipped and over stocked and Sony should actually be trying to push out more to catch as much of this demand as they can before it fades or some people get tired of waiting and grab an XB1 instead.

    TBH I think there’s a fair chance the gen has already be set in stone already. Bitter fight in US which will end in close finish (MS will put all their efforts into getting back into lead here and might pull it off – certainly it’s clear XB1 package overall will be stronger in US than anywhere else). I think PS4 will keep pretty much everywhere else including UK (which already looks like a sure fire reversal at this point given price difference, the 60hz vs 50 hz PAL issues for Snap and media and the much weaker media offering from XB1 that doesn’t differentiate from PS4 (or even from a tablet or Smart TV). Rest of Europe you’d have banked on for Sony before launch, now it’s simply clearer the difference will be even bigger this gen.

    Very curious to see how each does in Japan – and of course whether MS does find a way to alter what already feels like the inevitable direction of this gen.

    BTW I should note both sales figures are very good and if you leave out any sense being second is automatically “bad” then it looks to me like PS4 is going to sell very well, as is XB1 and it’s the Wii U and Nintendo that’s going to be the big loser. I reckon we’ll see PS4 comfortable ahead worldwide for the whole generation, XB1 a bit behind in second but still selling decently in its own right and Wii U being another Gamecube level console in terms of sales.

    #32 11 months ago
  33. mistermogul

    @33 – Nice analysis NiceFellow.

    I can’t see MS gaining any traction in Japan, especially considering the physical size of the actual X1 console + Kinect 2.

    #33 11 months ago
  34. reask

    I don’t know but it seems to me the 1 is doing pretty well considering price difference amongst other things.

    I mean you have 160 million ps360 owners out there of which 150 million will have not bought either by the end of feb say.

    Now I know plenty wont bother getting either and lots will go one way or the other regardless.

    I just see a vast majority not buying either until they start seeing the actual games on both.

    I own both the 360 and ps3 and have no interest in either at the moment as there is lots of life left in this gen.
    As far as games go on both neither have shown me the must have title to get.

    I find that to be the same with all the gamers I know in my workplace and social life.

    The only real hype I am seeing is on sites like this and other gaming sites.

    I readily admit I done a thread here on the 1 failing as I bought in to the hype that was the net yet there is shag all between them.

    Some say it is supply that is keeping the 1 afloat but one could argue that Sony done that on purpose to make it seem like there was high demand.

    I have no evidence whatsoever that it is true but what is happening right now is that MS have shipped 3.9 million and Sony have sold 4.2 million.

    Dress it up whichever way you want but that is actually the figures out there in the real world as of today.

    So I reckon MS have managed to weather the initial storm pre release and moved pretty much the same as Sony in less territories with a console 100 Euro dearer than its competitor.

    Just my take but you have to wonder how much spinning either side is doing really.

    #34 11 months ago
  35. thegrimmling

    The truth is that there just is not that many games for either systems. Nintendo has more games than both….. not much more even though it had over a year head start.

    I think is a year (or so) when the early adopters that dealing with hardware failures & later models fixing those, plus with some games coming out, we will then see who will do better this generation.

    Either way, both systems will make tons of money and never go away.

    One of the things I am against is third-party Exclusive games & DLC content. That is just unfair to the consumer. But I am OK with exclusive first-party games.

    #35 11 months ago

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