Mobile/PDA About Us Advertise here


		User name	Password

		Not registered yet? Register here. Lost your password? Click here.

Browse by topic

News

Microsoft Entertainment division posts profit

18 July 2008 14:37 by Andre "DVDBack23" Yoskowitz | 7 comments

Microsoft, as part of its larger earnings report today noted that for the fiscal year ended June 2008, the Entertainment and Devices Division, home of the Xbox 360 and Zune had a USD 426 million profit for the year.

The division had a loss for the Q4 despite a huge surge in revenue but the loss was much smaller than years past. For the Q4 2007, the division reported an operating loss of $1.223 billion USD but that dropped to $188 million USD for the 4Q this year.

Revenue was up 34 percent to $8.15 billion USD and the software giant attributed the surge to higher sales of the Xbox 360. The company shipped 1.3 million consoles during this Q4, compared to 700,000 in Q4 2007.

Operating profit was so low because of a large $1.1 billion USD charge taken by the company relating to their decision to expand the warranty coverage of all 360 consoles.

Permalink to this article | Topic: Consoles

Free Wi-Fi at McDonald's for Zune users (17 September 2008)

New Zunes confirmed by Microsoft (10 September 2008)

Higher capacity Zunes coming (30 August 2008)

Microsoft looking for new original content for Zune (11 August 2008)

Xbox 360 downloadable content generates large revenue (6 August 2008)

US Xbox 360 pricecuts coming across the board? (3 August 2008)

Customers to be reimbursed over Yahoo DRM server shutdown (26 July 2008)

Microsoft Zune phone coming? (25 July 2008)

UK retailers dropping the price of Xbox 360 (22 July 2008)

Wii leads US hardware sales for June (18 July 2008)

80GB PS3 model coming to Europe and Australia (17 July 2008)

Sony cuts price on 80GB model PlayStation 3 (16 July 2008)

Sony sets their sights on number 2 (15 July 2008)

Microsoft announces deals with Netflix, NBC-Universal (15 July 2008)

Microsoft confirms new model, price cut, for Xbox 360 (13 July 2008)

No PS3 price drop coming, says Sony (11 July 2008)

« Previous news article
Ubisoft releases 'illegal' No-CD crack to fix game bugs

Next news article »
PS3 PlayTV coming September 10th

Post your comment

Discuss this article!
iluvendo (AfterDawn Addict) 18 July 2008 15:11
How did they make a profit ? On print, MS says they lose money on every console, yet they shipped more consoles than before, and now they show a profit, even when taking a $1.1 billion charge. MS does funny math in their accounting practices ! [ + quote]
Stu_dent (Newbie) 18 July 2008 17:02
Microsoft, infact all console makes usually make a loss on their consoles when they are first sold and usually make the money back from software sales, i think the only execption to this is the Wii which i think made profit from the go. I think its been a long while since microsoft has been losing money on the 360 and i think you will probably find that they are in fact making a porfit on each console, this will be down to reduction of manufacturing costs and the like. On a similar sort of topic I think i remember reading that sony is getting close to making a profit on each ps3, however i think that will be cancelled out with the price cut on the 80GB model [ + quote]
Oner (Moderator) 18 July 2008 17:19
It's not a price but on the 80gb it is just a 40gb with a bigger HD and a Dual shock 3. Search > http://forums.afterdawn.com/search Rules > http://forums.afterdawn.com/thread_view.cfm/2487 Important Rule > http://forums.afterdawn.com/thread_view.cfm/380660 [ + quote]
mspurloc (Member) 18 July 2008 17:28
How do they make a profit? Halo. Xbox Live multiplayer, the game sales, downloadables, accessories and merchandise. As said here, the consoles are the delivery devices. When you can sell an add-on hard drive that costs you ten dollars for $180, you're going to make a profit eventually. Of course, there's a little creative accounting going on here, too. Like all smart companies, they have an investment portfolio for each division which offsets costs. And remember those "Ring of Death" repair costs? You can bet whatever that actually cost them isn't in their figures. Although sales of refurbished machines did wipe almost all of that out, since even refurbed, they sold for twice what they cost to make, ship and repair. [ + quote]
iluvendo (AfterDawn Addict) 18 July 2008 19:15
*Originally posted by mspurloc:* *Quote:* *How do they make a profit?* *Quote:* *Of course, there's a little creative accounting going on* Finally a ray of light ! If it wasnt for bad luck, Id have no luck! "The flimsier the product,the higher the price" Ferengi 82nd rule of aquisition [ + quote]
mspurloc (Member) 18 July 2008 21:06
*Originally posted by iluvendo:* *Originally posted by mspurloc:* *Quote:* *How do they make a profit?* *Quote:* *Of course, there's a little creative accounting going on* Finally a ray of light ! To be fair, though, they did stop making the "we're losing money" claim last November. They probably realized they couldn't get away with it anymore, after game sales skyrocketed and they "fixed" the Ring of Death issue. They also got out of the movie business, which they now say they were never in, and that returned some cash to the coffers. Very stupid, greedy move on their part, ticking Peter Jackson off that way. They destroyed any good will there was for them and they must've realized that. [ + quote]
Hardwyre (Newbie) 30 July 2008 12:46
Microsoft, as a company, will always, ALWAYS make a profit. Bill Gates is a financial genius, and MS is more fiscally secure than the U.S. government. If there were two people left in the entire world, and one was Bill Gates, he'd have the other guy's wallet before the day was out. [ + quote]