Price Cut and Recession Damages Xbox 360 Division

More consoles sold for less cash

Posted by Staff
Price Cut and Recession Damages Xbox 360 Division
The gaming side of Microsoft's Entertainment and Devices Division (EDD) - home to all things Xbox 360, including games, Live and accessories - saw a 3% decrease in revenues for the fiscal year of 2009. The final quarter also ended on a down, as "box 360 platform and PC game revenue decreased $110 million or 12%."

The company's investor relations site declares, "EDD revenue decreased across most lines of business.

"Revenue from our non-gaming business decreased $292 million or 12%, primarily reflecting decreased Zune and PC hardware product revenue.

"Xbox 360 platform and PC game revenue decreased $161 million or 3%, primarily as a result of decreased revenue per Xbox 360 console due to price reductions during the past 12 months, partially offset by increased Xbox 360 console sales and increased Xbox Live revenue."

For the full year, EDD shipped"11.2 million Xbox 360 consoles during fiscal year 2009, compared with 8.7 million Xbox 360 consoles during fiscal year 2008."

This, however, as not reflected in the final quarter (April, May and June 2009) when, "Xbox 360 platform and PC game revenue decreased $110 million or 12%, primarily as a result of decreased Xbox 360 console sales and decreased revenue per Xbox 360 console due to price reductions during the past 12 months, partially offset by increased Xbox Live revenue.

Despite the price-cutting giving the 360s various incarnations a competitive edge against both Wii and PS3, "We shipped 1.2 million Xbox 360 consoles during the fourth quarter of fiscal year 2009, compared with 1.3 million Xbox 360 consoles during the fourth quarter of fiscal year 2008."

Those are the bald facts from the horses' very mouth.
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Comments

config 24 Jul 2009 09:35
1/1
It's DOOMED! Time to roll out the 720 Natal, methinks
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