Microsoft: Xbox 360 Sales Down but Income Up

Microsoft saw revenues for the three months to December 31st 2009 from its Entertainment and Devices Division fall by 12% ($2,902m from $3,256m). Operating income, however, was up a massive 188% (from $130m to $275m).

These figures come from the quarterly report filed with the SEC in the USA. The Entertainment and Devices Division (EDD) handles Xbox 360, Xbox Live, Zune... and retail sales of Windows.

Talking of the revenue decrease, the document explains, "This decrease was due mainly to decreased revenue from Xbox 360 video games, decreased Xbox 360 consoles sold, and decreased revenue per console, offset in part by increased Xbox LIVE revenue."

In terms of hard figures, the company "shipped 5.2 million Xbox 360 consoles during the second quarter of fiscal year 2010, compared with 6.0 million Xbox 360 consoles during the second quarter of fiscal year 2009."

Price reductions didn't help sales in this case then. In fact, "The decreased revenue per console resulted from price reductions during the past 12 months."

And Zune didn't help, "Non-gaming revenue decreased $59 million or 8%, primarily reflecting decreased sales of Zune digital music and entertainment devices and Windows Mobile device platforms."

So how was income up? This was "due to reduced operating expenses. Cost of revenue decreased $478 million or 23%, primarily due to lower Xbox 360 console costs, offset in part by increased royalties to partners related to increased Xbox LIVE transactions."

Full details over here.

And MCV has a good summation of the facts here.