Joystiq- Microsoft's quarterly revenue for the period ending June 30 hit $18.06 billion, with an operating income of $192 million and a loss of $0.06 per share. This is compared to revenue of $17.37 billion for the same quarter in 2011. Microsoft also posted a net loss for the quarter of $492 million, compared to last year's gain of $5.87 billion for the same quarter.
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which i am assuming isnt a good thing. First Net Loss in company history... Most of the revenue in entertainment division is "due to Skype"
and not sure by top selling console for consecutive "18 months"... Cause World Wide numbers show that Sony out sold Xbox last quarter. Xbox won quarter before that. Sony won quarter before that...
so. do they mean US only?
This actualy BAD news, in the end MS lose half a billion. "net income" is the bottom line
That's true: in the end, it's the bottom line that counts, not the razzmatazz in the middle; but still a congratulations of sorts are in order for Microsoft.
Congrats, Microsoft!
Anyway, terrible quarter for the 360. It's hard to tell what's going on revenue wise with Skype in there now, but 360 sales fell over 35% year over year. 1.1 million shipped vs 1.7 million last year. Ouch. That's a huge drop no matter who you are. There's no way to spin those disappointing numbers. Good report for Microsoft overall but what a slide for the 360.
If Joystiq is reporting accurately, your right it's a loss. Net is the bottom line and I think thats being lost here. They lost money. But they also had to pay for the aQuantive collapse and they're gearing up for the Windows 8 launch as well.
Over all revenue is up for them and thats always good news. Something like the aQuantive collapse probably wont happen again so that will help out next quarter. Plus, they posted a 16 billion dollar profit for the year. Things are still going well over in Redmond.
how did u get so many agrees?
fanboys need to check facts.
What's crazy is the 360 is poised again for another ridiculous 4th quarter with Halo 4 dropping in November.
Not to mention Windows 8 drops in October..and who knows if Surface is coming this year.
Not a bad forcast for Micrsoft going into the last half of the year.
I'm good..about to get my Tony Hawk on and Deadlight comes in a couple of weeks..
Evil
"The company reported a record fourth quarter revenue of $18.06 billion, but did suffer a net loss over the last three months of $492 million. While the net loss was in stark contrast the net profit of $5.87 billion from the same time last year "
See the words "NET LOSS" in that quote.
It was a huge loss but the larger point is that without that idiotic move, the underlying value of MS is as strong as ever. They would have produced a $24B income number if not for the write down.
Investors should be worried. Between Apple and Google, MS have their hands full!
MS have posted an 'expected' loss because they acquired a online advertising agency 5 years ago for around 6Bn$. They have shut that operation down which put them at a loss.
If you look at sales of windows O.S they are steady and continue to help MS.
The shares havent taken a hit either
Not only the world is full of crap, but also full of irony. The truth will set you free, but first it pisses you off :
Sony belongs to Rothschild bankers, it's the same group of people that made the world we see today. Which one is more evil?? Sony or Microsoft? You know the answer yourself.
"Nathan Rothschild was an observer on the day the Duke of Wellington defeated Napoleon at Waterloo, Belgium. He knew that with this information he could make a fortune. He later paid a sailor a big fee to take him across the English Channel in bad weather...The same way the Rockefeller's went into Japan after World War 2 and bought everything 10 cents on the dollar. S O N Y = Standard Oil New York, a Rockefeller Company." http://www.scionofzion.com/...
Japan was put under rothschild control after WWII.
Rockafeller went over and bought out a bunch of businesses
and created Sony which the first initials are that of
Standard Oil the company owned by rockafeller. At this time
the Japanese debt was bought out as well and the Rothschild
central bank was established shortly there after.
BTW im glad that im not the only one stuck in the past seeing how the 3DS is destroying the vita.
EDIT this reply was meant to Vega below.
What they need to focus on is more first party exclusives in my opinion because while Halo and Gears generate more buzz than any other exclusives, they still are only two franchises, and any franchise will lose steam after a while.
http://blog.gadgethelpline....
First ever quarterly loss.
No, he's not a fanboy like he PM'd he wasn't! smh
You are looking at it in the wrong way $492 million,(half Billion) is nothing when MS wrote off 1Billion on RROD issue. This is great news. Happy gaming and have a great day
Microsoft Office is the top earner for Microsoft at the moment. Ms office by itself, supposedly out-earned Google as a whole.
We'd all love that. But knowing Microsoft they probably wont do it. Their business logic is "Our platform is selling well, why invest money into more games when we can use that to sign a TV network deal or something?"
It's interesting how Sony is willing to invest money into making new franchises and IPs (like Beyond: Two Souls and The Last of Us) despite the fact that this gen is coming to an end (it has been a long one, hasn't it?).
It shows their interest in providing what the gamers want. Yes, they also have other services (PS+, cloud saving etc), but if you look at them closely, most of them are primarily centered around games.
Microsoft's strategy is a bit different, but clever from a business standpoint. Get in the market early before the competition for a headstart (check), sporting what everyone else wants - games, (check).
After you've gathered the fanbase, look for new cheaper alternatives to keep them coming, such as instead of creating entirely new IPs, sign for timed exclusivity deals with some of the bestselling games (CoD, GTAIV etc). Useful for a quick cash grab, but not a good long term solution.
There's a reason why Sony now owns quite a number of 1st party studios, like Naughty Dog. It's because come next gen, Sony will be ready. They learned this from experience - if you must launch, make sure you have games. They don't need to convince you that whatever ND will do next gen will be good. You already know! Microsoft is banking on turning the 360 into a media hub center for all your entertainment, thus all this investment they're doing. If they launch with a new console with this strategy, it could come crashing down - then they'd need games...from where?
What I find interesting is how the tables have quite turned for both platforms.
I'm a gamer, but I do NOT JUST care for games. I mean do you consume other forms of entertainment?
I do! I watch TV/movies, listen to music, read a *lot* of books, and so on. I have come to a point where gaming isn't the center anymore, and if a console only offered me games I would be far less likely to buy it.
It's like Smart Phones are no longer *just* used as a phone!
That said, MS has been exceedingly good at controlling their cost so you don't end up with billions of loss. A healthy business is good for consumers as well!
I agree. All Microsoft has done was to adapt and evolve by bringing in new services to the Xbox brand - nothing wrong with that.
I just wanted to contrast how both Sony and Microsoft's contrasts - they have slightly different goals and means of achieving them.
"If they launch with a new console with this strategy, it could come crashing down - then they'd need games...from where?"
you probably need not worry about that. MS has spent lots of time and $$ building strong 3rd party relations.
I fully believe that while 1st/2nd party exclusives have their place. It is the 3rd party games that are the real life blood of a platform. Without good 3rd party support then it puts that much more pressure on the 1st/2nd parties to deliver the goods.
@Dragonknight- you have some really skewed views. You appear to believe that you have such an exalted position that you can speak for all PS3 as well as 360 gamers. Honestly, how much nonsense can one spew? Evil is right. You can count on the fact that if a mirror article had appeared for Sony with the same thing and someone commented the way you did, they would be set on fire before they could utter the words Halo.
DK: + bubbles for refusing to submit to such mindless drivel and bullying from a keyboard warrior, who for some reason, is so intolerable of anything positive being said about the 360 that he has to spill his cornflakes all over his monitor.
OT: Kudos to MS for doing so well. Even I didn't anticipate MS doing so well at the start of this gen. Hopefully this is good for gamers.
You dont need consoles to watch movies or "read books". Games should always be the ONLY reason to buy a console no matter the multimedia capabilities that it has. There are a bazillion of devices in the market where you can watch your movies and read your books. I know that is selfish and elitist but i want your kind to pack your bags GTFO and leave my hobby alone. I want MS, Sony and Nintendo to focus 100 % on gaming so why dont you go watch your movies and read your books on an Ipad or smart phone?
you guys keep going on and on about " new IPs and fresh experiences" but i pretty sure you bought uncharted 2/3 and possibly uncharted 4 if announced. you will buy GoW4 and many other sequel when they are released on the ps3. as will many others. so your argument holds little weight as no sequel should sell cause as you stated it the same ol same ol. right?
Imalwaysright you say you want you console to be 100% focused on gaming and nothing eles. then buy a 3DS as that's the only system that just plays games. even the wii play netflix and so does every other console maker. no company just makes a product that only does one thing these days. just like smartphone just don't make phone calls. sony put a blu-ray player in the ps3 not for gaming sake but to push blu-ray movies and introduce a new format.
if your that stuck in the pass with consoles just dedicated to gaming have fun playing your
3DS. while the world moves forward and enjoys what these consoles have to offer us.
as for new IP's. they don't guaranty to be high quality or well recieved. hell most new games get low scores or just don't sell. look how well recieved alan wake was how much did it fly off the shelves or heavy rain which even the dev was upset that people bought it used instead of new. honestly it's gamers like you that are ruining the gaming industry with you biotching and whiny of self entitlement that a game has to be core. cause casuals should only play with the Iphone or wii. it should be about having fun and enjoying the game and it should be for anyone that enjoys playing games young and old, core and casual.
"you guys keep going on..... cause as you stated it the same ol same ol. right?"
Uncharted is a fresh IP in case you didn't know. Unlike halo, Fable and Forza Uncharted was first released THIS GEN.
Additionally people buy NEW IPs IN ADDITION to other games.
"Imalwaysright you say you want you console to be 100% focused on gaming and nothing eles."
I think he means how different MS is today about these things when compared to 2005-2008. Big difference.
" just like smartphone ...a new format."
PS2 had DVD also. I think even you understand now how stupid it was of you to claim what he meant. It should've been pretty obvious.
"as for new IP's. .... or just don't sell."
Name a few. I can name a few new IPs from the top of my head and I know they sold atleast 1 million. Let me guess, selling 1 million means the game don't sell to you right?
" look how well recieved alan wake was how much did it fly off the shelves or heavy rain which even the dev was upset that people bought it used instead of new."
Alan Wake is on x360. That's their biggest mistake. Heavy Rain sold something like 3.5-4 million so I'm not sure where have you been. That game was a complete success in every way possible.
"honestly it's gamers like you that are ruining the gaming industry with you biotching and whiny of self entitlement that a game has to be core."
We are commenting on a gaming website here. How casual do you think people like us are? Be it wonderbook or Kinect or something similar if it's aimed for kids people on a gaming forum are bound to hate it. What in the world makes you think gamers care about casual s*it?
" cause casuals should only play with the Iphone or wii. it should be about having fun and enjoying the game and it should be for anyone that enjoys playing games young and old, core and casual."
Yeah but like I said we are not casual here on this website. Casual people don't care enough to be reading gaming news. The moment Sony does a similar 180 turn like MS and concentrates on casual money that's the day when I buy myself a gaming rig like no other. The exclusive games is the reason to buy a platform. Always have and always will be. To a gamer atleast that is....
so you saying you don't own not one sequel of any game franchise i find that very hard to believe there. even if true then you have a very small library of games. my point wasn't to call out sony games or big up 360's, but to call out your claim that 360 should focus on new IP that's unproven or not guaranty to sell or get good reviews. i don't have to know your buying habits to know your full of it. even with all the new games sony release, how many of them really sell compared to sequels? how many of them are reviewed better than sequels?
I'm not saying people don't like new games. but people are will to buy sequels over new IP's. just look at reviews and sell to answer that question.
@ Imalwaysright
first you say " I want MS, Sony and Nintendo to focus 100 % on gaming" now your saying " dont mind consoles having multimedia capabilities" which one is it? make up your mind cause your switching up.
people want more from these consoles which is a reason why they are doing more. i have been gaming since coleco and atari 2600 days and to see these consoles do more is a great thing. especially when I go out of town every other weekend and i take my consoles with me when I'm stuck at the hotel and don't want to pay for the hotel garbage movies. i just plug in my system and play games or watch a movie or listen to music. that's what great about these consoles.
if you wish to live in the past, that's your problem. but with new hardware coming out that do more and more. you will find that you will either have to adapt or leave gaming period. cause they won't just be playing games. just like I'm sure you don't have a old flip phone that just makes phone calls.
@insomnium2
i see you had to get in on what i say and still didn't get it because your panties are in a bunch from our last encounter.
if DragonKnight comment that he does like or own sequels but only wants new IP's and new experiences. what are you going on about uncharted games is are new experience since 2/3 are sequel which is in his own words was the "same ol same ol" but like always your heart is on your sleeve and your panties got ruffled.
he even said he doesn't own uncharted 2/3 but you missed that part didn't you. i didn't call out uncharted but only used it as a point that people buy sequel over new IP's.
like i told you before if you want to have a GROWN UP CONVERSATION we could have one. but again like the child you are you come into a argument half-assed pounding your chest without reading the whole comments at hand. now go back to the corner like the little dunce you are and have a time out and stop trying to put words in my comment that aren't there.
Dark Souls is a multiplat title.
I think you two comments here speaks volumes about you:
"I hate Microsoft. Hated them before they entered the gaming arena."
http://n4g.com/news/1042705...
"I love Sony."
http://n4g.com/news/1042580...
Then you go on to say:
"It's no use trying to convince these guys that Microsoft should do more for their gaming fanbase, because they're not gamers. ".
I believe doing something for your fanbase is releasing games they want! Almost every single MS first party game is a huge hit. Fans or customers are putting their money where their mouths is, not just in the comment section of n4g.
Your comment history speaks volumes about you.
You should really take a look at your own comment histroy before coming to the defence of those guys above you.
So let me get this straight...
DragonKnight comes in with a super hateful attack on MS. DK and Evil respond to his nonsense and they're marked for trolling? Did the mods even read their comments?
Not to mention Dragon is joined by more idiots like Hicken, Insonium and Outside And they continue to stand behind their stance of this site doesn't lean heavy on the Sony side?
isn't that half of what sony are as a whole worth?.
keep up the good work microsoft.
Sony Music Entertainment (Worth 11 Billion)
"In 2005, Jackson's defense attorney, Thomas Mesereau, revealed that the song catalogue had been valued at between $4 billion and $5 billion.[37] The company's song catalogue is believed to generate up to $2.5 billion a year; The Beatles' hits alone bring in $30 million to $45 million a year.[38] Jackson's other publishing firm, Mijac, which publishes songs written by Jackson himself and which used to be administered by competitor Warner/Chappell Music, is valued to be worth at least $450 million.[39] Since 2011 Mijac is administered by Sony/ATV. It is reported that Sony Publishing EMI is value to 11 billion dollars."
Source (2012): http://en.wikipedia.org/wik...
Edit: @ nuke
I like how even if a person provides sources/links and logic on N4G, they'll still get disagrees. Market cap is determined by profits and is completely different from assets which microsoft would need to buy Sony. Sony patents, music division, MOVIE division (The Spider Man franchise alone is worth 4 billion, who knows what the Karate Kid franchise is worth) are worth billions.
Sony's market cap is less than $13 billion:
http://finance.yahoo.com/q?...
Sony owns ONLY 50% of the MJ music
its VALUED not WORTH
yearly revenue is 1.9 billion SHARED between LLC and SONY.
if you would just be realistic and admit that microsoft are smart MOFO's and sony throw money down the drain, you might understand the meaning of making money.
if you think sitting on HALF of MJ's music and making losses on your console is good business i suggest you go back/to school.
EDIT: this is FACT not OPINION and is my honest take on the situation.
Sony has 161.56 Billion in assets.
Sony also has 136.66 Billion in liabilities. Simplistically you would say that the company is then worth 24.9 Billion.
http://ca.finance.yahoo.com...
The value of a company isn't only it's assets though. Sony's stock value has been dropping for over a decade from it's peak value about 13 years ago. Sony has lost money for 4 years straight, this year being the worst in it's history, loosing 5.7 Billion.
The value of the company is now reduced. If you bought Sony today you would have to consider how much more money the company is going to loose before it turns around? How much money will you have to pump into it to turn it around? How much of it's value will erode as the brand continues to struggle? That is what the stock market does, cold calculations based on hard facts and telling numbers. That is why Sony's stock is only $12.12 right now. That is why Sony is only worth $12.1 Billion right now.
Xbox 360 = Lil Wayne
PS3 = Kendrick Lamar
Quality > Quantity
Ahem.
It doesn't matter how many Xbox's are selling when they don't have any good games to play on them. So the Xbox Devs need to make some more Quality games.
And just in case you didn't catch my analogy of Kendrick and Lil Wayne
Lil Wayne sells millions and he can't rap.
Kendrick Lamar doesn't sell that much but he's a real lyricist.
He's doing his JOB unlike Microsoft.
Secondly, all of those exclusives haven't added up to much. They are great in your opinon-and millions of others like you-and then there are those of us-like me-who find the majority of this much vaunted library of exclusives to be mediocre. I much prefer my 360. True they have fewer disc based exclussives, but the ones they have beet the pants of the competions imo. Top that with the same (usually better) third party support and xbla, I'm fine. But here's catch: none of that should matter because you're still going to like what you like. Get it?
Just like what you like. This console war crap is stupid.
Success for any one of the different gaming platforms is a success for the gaming industry as a whole. It means that traditional gaming is healthy.
Yet when Sony had no games ALL it was good for was media and that was a bad thing. Sony = bad, Microsoft = awesome. Flip flop like politician's much? So apparently according to some having a familiar new sequel to a franchise is a NEW experience as well? Interesting how things turn around so much, almost makes you dizzy. So anyone want to tell me why RROD and high fail rates on earlier systems is awesome? Just since we're on here spinning some good stuff, figured someone could keep it rolling.
That doesn't really say anything. Just that MS as a whole made money. By money being moved around.
When they can sell their system for 199 and now 99 bucks with 2 years contract, they are not looking at us the gamers i feel like we are the ones who actually made them successful and back than they message was we are for core gamers but now everything is about everything but games. I think they have forgotten that its a gaming system
with nintendo getting into HD gaming along with ps4 and xbo720, i am fully expecting a big backlash next time MS launches a new system. After 20 years of gaming there is one thing gamers don't forget and that's how a company treat their fanbase after buying their product
this gen for me it was xbox360 and ps3. Next time i think i am going with ps4 and Nintendo just because they offer more to my gaming needs all the other crap i don't care about
I'm not saying it's horrible news, or even bad news. But it's certainly not POSITIVE news.
"Microsoft's quarterly revenue for the period ending June 30 hit $18.06 billion, with an operating income of $192 million and a loss of $0.06 per share. This is compared to revenue of $17.37 billion for the same quarter in 2011. Microsoft also posted a net loss for the quarter of $492 million, compared to last year's gain of $5.87 billion for the same quarter.
Revenue for Microsoft's Entertainment and Devices Division grew 20 percent for the quarter, aided mainly by its acquisition of Skype. The Xbox has now been the top-selling console for 18 consecutive months."
What that means is Xbox is doing great. MS invest in lots of things, the $492 million net lose could come from anywhere "NOT GAMING".
Posting a $492 million lose is much better than posting a "4 billion" lose like Sony.
because they don't read after the headline..roflmao
The gap between PS3 and Xbox went from 8 millions to only 2 thanks to the rest of the world (which is bigger than the US BTW). 0_-
oh and "in the U.S." - fixed. no such place as US.
http://www.gamasutra.com/vi...
Hardware sales for the XBOX360 are down 29% from last year.
Hardware sales for the PS3 are down 19% from last year.
That's not the interesting part, look at software sales.
Software sales for the XBOX360 are down 15% from last yeat.
Software sales for the PS3 are down 27% from last year.
"The tie ratio for the Xbox 360 has now reached 9.4, a new high for the system in the data I've collected over the years. That puts the total Xbox 360 software somewhere between 321 and 325 million units. By comparison, the Wii tie ratio rose to 8.0 giving that platform total software sales of 315 - 320 million units. The PS3 now has a tie ratio of 8.5 and software sales of 180 - 183 million units."
Amazing how the XBOX360 can sell so much software with so many repeat systems out there. Amazing indeed. XBOX Live also grew by 15%, how is that possible when we have so many repeat customers?
The 360 has what ~60% more sales than ps3 in the USA?
Most multi-console owners buy multi-platform (atleast with multiplayer games) games on 360 because well, their friends are on the 360 and they want to make use of xbox live that they are paying monthly/yearly for.
Sony did launch an exclusive game almost once a month last year so now when we are not bombarded with new games all the time the software sales are BOUND to drop yoy. I suggest you look at TOTAL WW software sold before making a smartass comment. PS3 sold more software already back in 2009.
There is nothing you can do. I know several people who bought a second x360 JUST BECAUSE they wouldn't want to wait 4-5 weeks without a console if it RROD'd. Here in Europe the switch for a new x360 might not be as smooth as it is in the x360's homeland surprize surprize....sigh...
XD I'm sorry thats just grasping for straws. I think 5 years is more than enough to take down another console thats "apparently" miles better in features and value than the other. If the ps3 didn't take over in 2010,2011 and doesn't in 2012 I can't see what sony could do to close the gap besides drop the damn price
So if what you are saying is true, and the 360's sales are that inflated by the RROD, then that only makes the 360's software sales even MORE amazing. It already has the highest attach rate of any console as it is. Deduct total hardware sales for the RROD and the attach rate shoots up even higher, further embarrassing Sony and Nintendo.
2012 so far looks exactly like 2011, the holiday shopping season changes everything :-)
And PLEASE let the intelligent people on N4G not be a minority. Losses for the EDD are due to Nokia payments, Surface R&D and Windows Phone 8 R&D.
Overall losses are due to 6 billion USD write off. Adjusted profit would be 7 billion USD in the past 3 months! That is pretty big.
1.1 million is decent for a console that old.
15% increase of XBL users is very healthy.
Shares are up almost 3%, which is good after almost 20% increase in the past 6 months.
But I guess N4G users will spin their own conclusions.
How is the gap 3.3m?
I know how this thread will turn out, all the fanboy BS and whatnot, but you have to appreciate the fact that Microsoft came into a market that was being absolutely dominated and they have managed to grab a pretty big piece of the pie, and yes, while North America isn't the world, it was enough to help Microsoft become number one world wide in 2011, and North America was absolutely dominated by Sony for over ten years. So its a feather in the cap at the very least.
I think Microsoft should celebrate by spending around 8.5 billion on a certain company and lock up the biggest franchise in gaming as exclusive.
Microsoft wants to purchase Mario?
Less 12 year olds on my system of choice that is awesome.
Lol at my 2 disagrees.
Related image(s)
Microsoft buys out Call of Duty, and no other console can compete. Because of lack of competition, Microsoft jacks up prices on Xbox Live subscriptions even more, focuses on casual/Kinect games even more, and relies on rehashed sequels to Halo/COD/Gears every year, after year, after year. Rinse and repeat for the next 10-15 years (or until console gaming dies off in favor of another platform for gaming.)
Yeah, it would be such a great thing for the gaming industry. Xbox gamers, in particular, would be ecstatic.
We don't know anything about next generation yet, so its tough to speculate. I will say that Microsoft is releasing quite core games year after year, but people complain because they are the same franchises, the franchises that people want and the franchises people buy.
The main thing is, nothing Microsoft does will please people like you, who don't like them. They could release 100 new IP's a year and idiots would still find a reason to complain.
Also 18 months in a row from the US.
I am not knocking it I just want facts straight. Congrats though, now I just want surface to hopefully put a dent in the Ipad.
I tip my hat to them for not only gaining more than twice their previous market share, but for doing it with less 1st party studios and exclusives under their belt!
Imagine the impact Halo 4 is going to have on their bottomline and console sales. To those that think Halo 4 won't move any consoles just because it's the 6th Halo on the 360, you clearly don't know the power that is Master Chief!
SONY still haven't learnt this lesson.
Sheeple need to be pumped full of advertisments.
I have a damaged cerebellum so i adverts don't work on me. lol.
http://finance.yahoo.com/q?...
Yet at least they are selling more than the other current gen console!
Then finish it off with "but at least they are selling more than the competition"
Absolutely classic
in 2007 microsoft paid like $6.5bil for an online ad revenue company. this company then completely tanked. this quarter they dropped their valuation of that ad company from $6.5bil, the amount that they paid for it, to $0. this means that they report it as a $6.5bil loss, despite not actually losing any money. they lost "value" because they got rid of a company that they had on their books as being worth $6.5bil.
so if you remove that $6.5bil loss that actually isnt a loss, youll see that microsoft were hugely profitable in this quarter - to the tune of something like $5.5bil.
its the same as when they wrote off $1bil for RROD repairs. they didnt actually lose $1bil that year, but they wrote it off and counted it as a loss for that quarter/year meaning that from then on they would not have to take any money spent on RROD fixes off their quarterly/yearly financials.
It's one and the same, it might be complicated but it still meant Microsoft shrank for that quarter. But investors will mostly not care since it is a once-off operating event that they have been well informed of in advance.
Hey guys, Microsoft lost $8 billion dollars but it's cool though!
The spin from some people...
These comments are full of butthurt from the other side. Great stuff.