Microsoft has issued its earnings report for the quarter to March 31st 2009. The period takes in Easter - the second biggest buying season of the year. It also takes in the various price cuts to the Xbox 360, which is overseen by the Entertainment and Devices division.
So, this year the division took $1,567 million in revenue compared to $1,592m in the same period last year. Last year, however, that revenue resulted in $106million in income. This time around, the division made a loss of $31million.
Now, as some context, The Washington Post states that "The fall in sales (for the division) was driven largely by decreased sales of Microsoft software for Apple computers. Xbox 360 platform and PC game revenue actually increased 16 percent."
Quite how Apple software fits in with Zunes, Xbox 360s and other entertaining items is a question that only Microsoft's management can answer.
Source: Microsoft
So, this year the division took $1,567 million in revenue compared to $1,592m in the same period last year. Last year, however, that revenue resulted in $106million in income. This time around, the division made a loss of $31million.
Now, as some context, The Washington Post states that "The fall in sales (for the division) was driven largely by decreased sales of Microsoft software for Apple computers. Xbox 360 platform and PC game revenue actually increased 16 percent."
Quite how Apple software fits in with Zunes, Xbox 360s and other entertaining items is a question that only Microsoft's management can answer.
Source: Microsoft
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Comments
SPInGSPOnG 25 Apr 2009 07:46
1/3
how exactly, does a period ending on March 31st "take in Easter", which was on 12th April?
This news serves Microsoft right, they bundled in loads of unrelated, but successful, products to try and make the Entertainment division (Xbox) appear profitable to their shareholders. Now the company as a whole is having difficulties those products can no longer mask that the Xbox is either unprofitable, or only barely so.
Logical of course, that they would point the finger at their long-time competitor Apple, rather than the money pit that is Zune. Strangely though, Microsoft has never declared Mac software as a major earner, so it's barely credible that it could suddenly become such a major cause of loss.
This news serves Microsoft right, they bundled in loads of unrelated, but successful, products to try and make the Entertainment division (Xbox) appear profitable to their shareholders. Now the company as a whole is having difficulties those products can no longer mask that the Xbox is either unprofitable, or only barely so.
Logical of course, that they would point the finger at their long-time competitor Apple, rather than the money pit that is Zune. Strangely though, Microsoft has never declared Mac software as a major earner, so it's barely credible that it could suddenly become such a major cause of loss.
Steviepunk 25 Apr 2009 09:25
2/3
the stories I'd been hearing everywhere else was that Xbox division income/profit was up while the rest of Microsoft had seen a decline in revenue (for the first time in 23 years, or something like that)... that version of the story would certainly fit with the comments in this story about less Microsoft software on Apple systems.
The story here sounds like it's got a few facts mixed up (given the conflicting statements in the story and given that everywhere else is reporting it differently)
The story here sounds like it's got a few facts mixed up (given the conflicting statements in the story and given that everywhere else is reporting it differently)
Steviepunk 25 Apr 2009 11:38
3/3
you know what... don't pay too much attention to my post, I've seen so many variations on this story that I don't know which ones are accurate anymore! lol