Andre Yoskowitz
18 Jul 2008 14:37
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.