Microsoft's Entertainment and Devices division posted third quarter figures: a $315 million loss (down 22% from last year's $402 million) while sales slipped to $929 million (down 21% over last year's $1.18 billion), as the whole company saw $4.93 billion in profits and $14.40 billion in sales. Looking forward to the full fiscal 2007 year, Microsoft has said it expects increased sales due to the increased availability of Xbox 360 over the year, as well as sales of its Zune.
Microsoft says the drop in sales came primarily because of decreases in the sale of Xbox 360s: half a million consoles shipped during the third quarter of 2007 as opposed to 1.7 million in the same quarter last year (the first full quarter in which Xbox 360s became available). Sales of Xbox and PC games decreased 44% over the company's first three quarters to $393 million. Quarterly losses were blamed on expenses related to the launch of Microsoft's Zune media player, as well as expenses from a lengthening of the Xbox 360's warranty period.