Microsoft makes $357M profit on games

Last October, Microsoft's entertainment and devices division, the segment of the software giant that includes the Xbox 360 business, posted its first quarterly operating profit. Based on the strength of Halo 3, the division managed to finish the July-September quarter $165 million in the black.

Microsoft's Xbox business proved it isn't a one-hit wonder today when the company released its latest financial results, which saw the division more than double the previous quarter's operating profit. For the company's second fiscal quarter (the three months ended December 31), the entertainment and devices division posted $357 million in operating income on revenues of $3.06 billion.

In a conference call with investors, Microsoft senior vice president and CFO Chris Liddell said the console had reached a record tie ratio of seven games for every system sold, with the gaming division's revenues beating the company's previous investor guidance by $90 million. Although the revenue growth was minor (about 3 percent) over the same period the year before, the company's gaming business had turned an operating loss of $302 million over the 2006 holiday quarter.

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003738d ago

thats alot, I wonder how much Sony and Nintendo made.

slak3737d ago

Do u think its more or less?

003737d ago

my bets on less but I don't think it's by alot.

mikeslemonade3737d ago (Edited 3737d ago )

Okay xbox launched in 2001 that would make 3 profitable quarters in 28 quarters. Not very impressive you ask me. And overall they're still losing money. Xbox1 lost $4 billion and 360 rrod $1.1 billion. And what about the disc read errors those are starting to become a problem. Those two issues alone have set them back. Microsoft would have to make a profit in every quarter like this one for the next 10 years in order for the Microsoft gaming division to be profitable.

GRRiMREEAPeR3737d ago

But howcome i havent seen THIS story posted yet???

rofldings3737d ago

lol. If you think Nintendo made less money, you're on crack. Last I heard, they raked in 12$ billion.

godofthunder103737d ago

i posted this about a month ago but most ps3 fans said i was lieing becauses they were bias.the truth is that after microsoft put 1.2 billion dollars off the side to fix the defected 360 they still made this proft.
the wii made a bigger profit then the 360 and the ps3 still didn't see a profit yet but it will.
the ps3 fans might as well face it the 360 isn't going anywhere and like it or not it made a profit.the same goes for the 360 fans,the ps3 isn't going anywhere either and it will make a profit this year.
sony might as well face it they will no longer hold over %50 of the game market like they use to.nitendo and microsoft finally starting to put a dent in the sell of sony gaming system.i'm not saying that it want sell a lot,hell i think that after it's all said and done the ps3 and 360 will be neck in neck and the will will be right behind.
instead of being bias and posting article saying that something isn't true when you know it is just because you want to make that system look bad just because you have the opposite system you need to be a game fan not a system fan because it make you look childish,hell they are all good system,each one does something better then the other like it or not.
i own a 360 and i love it and i never had a problem with it.i hate sony and never will buy a ps3 but that doesn't mean it isn't a good system because it's a damn good system but i try and buy american when i can to suport my country.
i don't like the wii but my wife loves it but out of all three systems,the wii is the only one that really gave the gamers something new to enjoy.the wii proved that graphics isn't everything,the wii proved that the majoyty of gamers look for a game system that's fun first even if the graphics are not the best,hell the top 20 games of all time probaly have graphics that is a 5 out of ten.
i hate sony but i'm not bias and afraid to say the truth.i think that the ps3 will probaly end up first but not by much because the 360 will be right behind and the wii will end up third.don't say i'm lieing because i'm just saying that this is just my opinion i'm not saying it's a fact.
i've always posted that they are all good systems but every time i posted the truth they take a bubble away.when i say anything good about the 360 ps3 fans take one away even when it's true and the same goes for 360s and wii fans.i don't understand why they can't let someone say something good about all the please give me some bubbles,hell you could even read my old articles and see that i think they are all good systems but people don't like it when i say something good about the system they don't have and it's childish.

ravinash3737d ago

I think the 357M is profit after all the cost including the cost of fixing all consoles which MS budgeted for.
The only related story i could see about Sony profit was this, but thats revenue for december only.

· PlayStation total hardware revenue was $714 million in December; surpassing the total hardware revenue of Microsoft and Nintendo.

· PlayStation total software revenue in December was $822 million, sales nearly doubled compared to last month’s sales.

Adamalicious3737d ago

Regardless of whatever math they are using to show a profit in that division it's still in the red to the tune of billions of dollars (like 6 or 7). I don't think they should pat themselves on the back too much.

+ Show (5) more repliesLast reply 3737d ago
Kyur4ThePain3737d ago

to see where the $1b went for the extended warranties.

zambrota3737d ago (Edited 3737d ago )

MS procurred that amount for fixing RROD in 2008 and beyond

They are not including it while calculating their fiscal.

they kept it as "security investment/long term financial liability"

This is a good strategy to show that their gaming biz is profiting when it is not .

This strategy can infact brings in new shareholders and investors

@blazing Prophet

It is actually 1.2B

neither 1 or 1.5 as i stated before

this 1.2B is not taken into account in any fiscal and is reserved for now and beyond

BLaZiN PRopHeT3737d ago

wow its not 1.5 billion its more like 1. what is with ur fud campaign against MS and the 360? also the 1 billion if for current and future losses.

PS3n3603737d ago

This grantees there will be an xbox 720 or 540 or whatever the hell there gonna call it.

INehalemEXI3737d ago

This is true, XBL has gota carry on. MS wouldnt want to let that monthly/annual income to stop rolling in.

Mr Marbles3737d ago

like said above, this will keep them in the gaming business, and hopefully give them reason to improve their efforts in it even more. I do wonder what Nintendo made, but like MS said their revenues were greater than even Nintendo so they probably had greater or equal profits. Sony on the other hand I think may still be in the red, PS2 is not enough to make up for the cost of under selling games and a console that sells at a loss.

IntelligentAj3737d ago

That's great news for their division. It's about time that the division had a succession on profitable quarters. Now let's see if they can keep it coming

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