Xbox division profit nearly doubles, nearly 34 million 360s sold

semiautomatix

semiautomatix

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Oct 23, 2009

Microsoft's overall Q3 profit declines 18 percent to $3.57 billion, but Entertainment and Devices income jumps from $159 million to $312 million; Xbox Live revenue up 50%, gaming revenue up $100 million.

Of particular interest to gamers is the performance of Microsoft's Entertainment and Devices Division, which makes the Xbox 360 and Zune multimedia handheld, and will have 3D games by year's end. Though Microsoft touted "Windows and Xbox exceed expectations due to strong consumer demand" in the subtitle of its earnings release, the division's earnings were down slightly. Revenues fell from $1.893 billion in July-September 2008 to $1.891 billion during the same three months in 2009.
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http://www.electricpig.co.uk/2009/04/24/microsoft-xbox-360-profits-rise-while-revenues-overall-drop/

In a conference call with analysts after the report, Microsoft investor relations general manager Bill Koefoed dropped more details on game revenue. For the quarter, overall gaming revenue was up nearly $100 million dollars, with Xbox Live revenues increasing 50 percent.

The executive also revealed that the Xbox 360 now has an industry-best 8.7-title attach rate--that is, an average of 8.7 Xbox 360 games sold for each console sold.
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Looks like Microsoft has hit the nail on the head with these figures. Gaming is fairly recession proof, it would seem. Add that to the title attach rate and it would appear Microsoft is reaping in money not only from the console but the myriad of games sold.

Hopefully this will ensure great R&D for the next gen XBox expected sometime in 2012!
 
Yep, the $50 for XBL, expensive proprietary accessories (add-ons) and water-downed consoles that grabbed market share on price point definitely helped...hopefully they did get enough to give a few servers world wide for free, put in proper R&D to ensure every console has a hard drive and has a BR drive....or maybe not...
 
Lemon369 said:
Yep, the $50 for XBL, expensive proprietary accessories (add-ons) and water-downed consoles that grabbed market share on price point definitely helped...hopefully they did get enough to give a few servers world wide for free, put in proper R&D to ensure every console has a hard drive and has a BR drive....or maybe not...
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Maybe you should stop trying to start flame wars in every post, What the hell is wrong with you anyway? Did an xbox land on your family and kill them and now its your life long mission to flame xbox at every single oppurtunity, hopefully a mod will delete your post
 
@Nduisimo : Sorry if it seemed that way, i was making a credible comment but a little too nasty, i'm sorry if it upset you...

So from the Pachter prediction about $100 for XBL, there were an indication of MS's profits from XBL being very high (billion+, but can't remember the exact figure)...and also the addon's bring in a large chunk and obviously arcade sales were also a consideration...so just wanted to mention that the profits are exclusively to 360 sales (in terms of the hdd variants)...
 
Xbox Live revenue up 50%
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The only "figure" without an actual $ value.
Interesting how they opted to keep that confidential.
They must be scoring big time with the subscriptions, and are not all that keen on letting the subscribers know just how much is being pocketed.

But, if you look at the sales figures, and assume that 50% of the xboxes sold are Live subscribers ... DAMN!
 
I think most American has a Gold live account. Bandwidth is cheap and internet speeds & latency is good. There really is no reason not to game online. America has a platform base of about 53% of all xbox sold. Thats a lot of money they can make on aftersales.
 
davemc said:
The only "figure" without an actual $ value.
Interesting how they opted to keep that confidential.
They must be scoring big time with the subscriptions, and are not all that keen on letting the subscribers know just how much is being pocketed.

But, if you look at the sales figures, and assume that 50% of the xboxes sold are Live subscribers ... DAMN!
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That's one way of looking at it! :D I dunno, maybe the article just neglected the figure, I wonder if its in the financial reports?
 
I saw it posted on a Michael Pachter article with regards to the $100 XBL prediction..like i said, i can't remember but it was high,and that excluded all the other revenue (including micro-transactions) from XBL...big big money!
 
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