MS E&D Q3 Losses Fall to $315M, Sales Down To $929M

[Spartan_X]

Microsoft E&D Q3 Losses Fall to $315M, Sales Down To $929M

Microsoft has released its third quarter results, showing the company's Xbox-encompassing Entertainment and Devices division posting a $315 million loss and sales slipping 21 percent to $929 million, as the overall company saw $4.93 billion in profits and $14.40 billion in sales.

The $315 million loss is down 22 percent from last year's $402 million, and came as the quarter saw $929 million in sales, down 21 percent over last year's $1.18 billion.

Microsoft says the drop in sales came primarily because of decreases in the sale of Xbox 360s. During the quarter, the company shipped a half million consoles, as compared to 1.7 in the third quarter of 2006, that being the first full quarter in which Xbox 360s became available.

Sales of Xbox and PC games decreased 44 percent over the company's first three quarters to $393 million, which the company puts hand in hand with the decrease in console sales.

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. For the first nine months of Microsoft's fiscal year, decreased losses were also chalked up to an overall increase in Xbox 360 sales and improved margins on the console.

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.

Source: Gamasutra

Edit: need a mod to fix the title pls! change it to: MS E&D Q3 Losses Fall to $315M, Sales Down To $929M

thanks! :)

Edited April 26, 2007 by Spartan_X

[Smashing Pumpkin]

Nice title :p

Good info,

cheers,

Richard.

xxx

[DirtyLarry Veteran]

Edit: need a mod to fix the title pls! change it to: MS E&D Q3 Losses Fall to $315M, Sales Down To $929M

thanks! :)

Done.

[neoadorable]

anything we can do to help heh heh? how about making all game titles available in all official markets concurrently? that way the impact potential is so much bigger. it gets wasted once you delay and people in other markets lose interest.

[George P Global Moderator]

Well sales are down, but lossess are down also. So they're losing less on each 360, it's going inline with what happens, it's been 1 1/2 years more or less. So I expect in a few months with the switch to the smaller and cheaper 65nm process, and good sales of the elite, they'll be making a profit before the year ends. Also, how much of that loss was sctually due to the Zune and not the 360?

[Kainz]

Wait till they see the sales of the 'elite' lol

[spenser.d]

Man, only $929M, Microsoft is in big trouble now :p

-Spenser

[oceanmotion]

Sure the rip off 120GB hard drive will get those numbers rising quite fast :p

[Elliott]

Also, how much of that loss was sctually due to the Zune and not the 360?

I wanna know that too.

That little Zune was just never meant to be. *glances over at the brown box sitting on his desk* ...Yea, I got it for free.

[neoadorable]

i'd focus on the 360 and Vista if i was MS. time to keep building the 360 as brand, in particular. they just can't fall asleep at the will thinking they sold over ten mill in the first year.

[George P Global Moderator]

^^^ Nah, MS isn't falling asleep, if anything I beleave the elites price point is in the green and not the red like the premium and core are, if they still are that is. That aside, much of that loss is still whatevers left of the original and ongoing R&D plus all the marketing they've done. It's not just about hardware and software sales, many things are in the mix.