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Microsoft Q2: Xbox division revenues down 11%

VG247:Microsoft reported revenue of $21.46 billion for the second quarter, up 3% year-on-year, but its Entertainment and Devices Division was not so successful.

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Good_Guy_Jamal1279d ago (Edited 1279d ago )

Really? Which part? The fact that they made a profit or the that they made even more money than the same period last year?
"That said, the division remained PROFITABLE and even IMPROVED PERFORMANCE, with operating income of $596 million, UP from $517 million in the same quarter a year ago."
So tell me, which part of making over half a billion in profit is "not good." Typical of eye-catching article meant to draw hits by leading with the negative. Typical of some to not read the full article and jump on to the Doom Mobile.

shutUpAndTakeMyMoney1279d ago (Edited 1279d ago )

Worst part is they did that with no original AAA content for the last 3 years(alan wake). and Yet their are 63+ kinect exclusives.
http://en.wikipedia.org/wik...

and 21 more announced.

I don't mind MS having success in gaming hope they do the same next gen. Xbox gamers are definitely satisfied and that's is great!

But having the division run by non gamers should be fixed next gen.

http://www.gamespot.com/for...

"This is actually a brilliant idea by microsoft.. now here me out for a second.

The 360 community has no gaming experience because well.. xbox got no gamezzz, so they hire people with the same qualifications, it's brilliant!!

Microsoft does it again"

not my words but funny imo.

You guy can initialize a nuclear on me now.

Urusernamesucks1278d ago

@ShutUpandTakemymoney HERE WE GO AGAIN, the typical sony fanboy going on about lack of AAA titltes Bullshit, man sthu with that, seriously keeep your filthy money.

"snorksnork FUCKING CAsuals sNORK SNORK" thats all you.

superterabyte1278d ago (Edited 1278d ago )

@Urusernamesucks Ok then mate proper big man you are.

I personally am happy to say that I backed the winning horse when I chose which console I chose because for me the games have just been continuously rolling in =D

I have got both killzone's, gran turismo(all gold licenses and 1000 cars), platinumed all the uncharted's and loved the exclusives I get.

My point is instead of disclaiming an opinion without giving reason why not give constructive feedback rather then derogatory language. For example list the game's that you have that aren't "casual" because from somebody looking from an outside perspective towards the xbox i can't see any reason as to own one so tell me a reason.

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fermcr1279d ago (Edited 1279d ago )

Had a decrease in revenues but still quite profitable (even more profitable then the year before).

Where is the bad news ? Did you even read or understand the article ?

If it wasn't profitable then it would be bad news. I wish my company had this kind of "bad" news.

UnholyLight1278d ago

People are stupid. Of course the Xbox 360 is not going to sell levels like it did 3 or 4 years ago or wahtever. The market is basically nearing it's saturation level and the people that are buying consoles are buying because they are cheap and aren't concerned about the Next gen.

Informed customers are NOT buying Xbox 360's because they know the next thing is less than a year away. Microsoft did a great job to eke out an extra couple years with Kinect which despite it's shortcoming actually really helped the Xbox's life cycle I believe. It is natural that growth would be down slightly as it is now time to start the next gen transition.

Figure it out people....

aquamala1279d ago

revenue down, but profit up, yes that's the gaming division, here for those that don't even bother reading the report

"That said, the division remained profitable and even improved performance, with operating income of $596 million, up from $517 million in the same quarter a year ago."

nukeitall1279d ago

This is exactly how I thought it would pan out. MS isn't in it for market share anymore as it is pointless. They are in it for the profit taking and that is why there is lowered number of consoles shipped, yet MS profit increased!

At this stage and at the cusp of next generation, MS is investing into their next console.

I would love to have less revenue, but with increased profit. That is any company's dream really.

If you really want to compare this, you have to wait for Sony's and Nintendo's numbers.

doogiebear1279d ago

M$ is trash no matter how much money they siphon out of fools

palaeomerus1279d ago

Sony All Stars Battle Royale
LBP Karting
Jak collection
God of War Collection

AngelicIceDiamond1279d ago (Edited 1279d ago )

So this why u mad? https://www.google.com/url?...

If you don't want to read it it says MS sold 76 million consoles SOLD like, people going into stores and buying it. Not SHIPPED. Shipped doesn't not matter.

Listen I do what others fail to do on this site and that is give credit when credit is due. If Sony does something impressive I commend them like I have been doing. I like both Sony and MS and their consoles. I don't get u people and your hate over a stupid video game machine. Seriously N4G grow the hell up its just a machine.

mcstorm1279d ago

@AngelicIceDiamon well said. I do find it funny how people in the tech world fight over who has the best product. I am a Big gamer and Own 2 360s 2 ps3s a WiiU a 3DS and a PSV. I get them all because there are games on all there consoles I want to play.

I also Own a Surface RT and when I got that everyone came out and slated me because I did not get an Ipad its just the way people are now every has something better than you or they have a point to prove if they don't like what you have.

kneon1279d ago

@AngelicIceDiamond

Not this stupid shipped vs. sold argument again. Manufacturers do not track when each piece of consumer electronics is sold to the end customer. As far as they are concerned it's sold as soon as a retailer or distributor buys it.

But if you want to play that silly game it still makes no difference. Retailers try not to keep months of stock on hand. So anything shipped to retailers tends to sell within a few weeks. So the difference between shipped and sold is negligible.

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mwjw6961279d ago (Edited 1279d ago )

@StrongMan STFU troll, go back under your bridge... all you ever do is bitch about MS. What they do rape your family that you never had FOREVER ALONE?

TheRealHeisenberg1278d ago

Show me on the doll where MS touched you. Sony, Nintendo and MS all touched me in the same spots, my heart and my wallet...they all only care about my wallet though.

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GribbleGrunger1279d ago (Edited 1279d ago )

It's almost like Sony in reverse. Sony lose money from divisions NOT related to their games division and Microsoft lose money from their games division but not their other divisions. Which company is likely to support the hardcore gamer next gen? I think that extra, but slower memory is likely to be used for Windows 8 and Kinect, while Sony's faster, but less ram will be leveraged to offer 1080p games at 60fps. Of course both will offer some of the other, but this I think is going to be the main battle ground.

Good_Guy_Jamal1279d ago (Edited 1279d ago )

Losing money? What are you talking about? Did you read the article? They made a profit. PROFIT. Over half a billion worth!
Were you so eager to compare MICROSOFT negatively to SONY that you neglected to read the darn article you are commenting on?
Edit: honestly people, what's there to disagree with? The Xbox division made a profit of $596 million, thats $79 million more than they made last year during the same period. How am I wrong?

Munky1279d ago

The majority of users on this site are straight up stupid, don't even try to understand or comprehend the madness.

KrisButtar1279d ago

"Microsoft’s Xbox business is part of the Entertainment and Devices Division, which reported an 11% year-on-year decrease in revenues from $4.24 billion to $3.77 billion. Although Xbox isn’t the only business stream in the division, Microsoft made it clear the console was to blame"

I didn't disagree but they made less year to year not more.

Good_Guy_Jamal1279d ago

Are you being sarcastic? Because if you read the article you'd know they didn't lose any money and in fact made more profit than last year.
I feel like I'm taking crazy pills! Do you people not know the difference between revenue and profit?
Profit is the stuff you get after you've subtracted the costs and expenses from your revenue.
More profit = a good thing.
More revenue is only great if it is accompanied by less costs and expenses.
In this case less revenue but far less costs = more profit. Which is good.
I swear I've stepped into the twilight zone. People so desperate for negative Microsoft news.

BattleAxe1279d ago (Edited 1279d ago )

@ Good_Guy_Jamal

You are a fool, here are some quotes from the article, since you like to talk about reading articles...

Quote #1

"Microsoft’s Xbox business is part of the Entertainment and Devices Division, which reported an 11% year-on-year decrease in revenues from $4.24 billion to $3.77 billion."

Quote #2

“Xbox 360 platform revenue decreased $1.1 billion or 29%, due mainly to lower volumes of consoles sold and lower video game revenue"

Quote #3

"5.9 million Xbox 360 consoles shipped during the quarter, down from 8.2 million in the same quarter of FY 2012."

Boy oh boy, Microsoft sure is doing great in the console business :/

http://www.forbes.com/sites...

http://www.forbes.com/sites...

http://www.forbes.com/sites...

MikeMyers1279d ago

GribbleGrunger:
"I think that extra, but slower memory is likely to be used for Windows 8 and Kinect, while Sony's faster, but less ram will be leveraged to offer 1080p games at 60fps."

Really? Based on what exactly, rumors? Do people ever grow tired from those who constantly have a negative tone towards one company but always put a positive spin on the other? I really wish people could just enjoy the games they have without this endless need to put one company above the other.

Read this highlight from the article:
"That said, the division remained profitable and even improved performance, with operating income of $596 million, up from $517 million in the same quarter a year ago."

Even though Microsoft has sold less units they are making more money off of that hardware because the cost are lower to make them. They haven't had a significant price drop for awhile now. They make money off of other things like Kinect too. So tell me where all these losses are?

http://www.gamesindustry.bi...

"Sony's PlayStation business suffered a decline in both sales and operating income for the second quarter of FY12.

For the quarter ending September 30 2012, the company's game division reported revenues of ¥148.2 billion ($1.85/£1.15b/€1.43b), down 14 per cent year-on-year from ¥176 billion on a constant currency basis. Operating income also declined year-on-year, from ¥3 billion to ¥2.3 billion ($29m/£17m/€22m).

Sony attributes the decline to falling sales right across its hardware line: the PlayStation 2 and PlayStation 3 sold a combined total of 3.5 million units during the quarter, a significant drop from the 4.9 million units sold in the same quarter last year; the PS Vita and the PSP sold a combined total of 1.6 million, a slight year-on-year decrease from 1.7 million units.

However, the PlayStation business reported gains in software sales: PlayStation 3 and PlayStation 2 games sold 41.4 million units in the quarter, up from 40.2 million last year; PS Vita and PSP games sold 8.7 million units, up from 8.2 million."

Neither Microsoft or Sony are losing money. Just because revenue is down doesn't mean they are losing money.

RTheRebel1279d ago

dont care for xbox like my ps3 better but,
just ignore the drones here
gribble is part of the church of sony
xbox bad news hurray WOOHOO
sony bad news they hate sony conspiracy theories lol

Anon19741279d ago

You`re not going crazy, Jamal. In fact, you`re bang on. It`s about profit, not revenue. 360`s sales dropped almost 30%, revenue was down and they still made more money than the same quarter last year. That`s fantastic in my books. It`s to be expected that revenue and sales will fall during the tail end of the console`s life, but what matters is how much money is being made.

That`s what will determine the future of the brand at the end of the day because we`re talking about a business here. They aren`t running a charity for gamers. It`s about making money. Frankly, I`m amazed that profit was up considering falling sales, falling revenue and a 25% increase in R&D spending related most likely to the next Xbox. If MS can continue to cash in on the 360 there`s a greater chance that they`ll make back the money spent on the 360 initially and then it all becomes worthwhile.

I`ve been critical of the 360`s fluctuating sales and revenue in the past, prior to Kinect`s release, but towards the end of the lifecycle we expect these to drop. The fact that profit is still strong is a good thing. I don`t know how any gamer could argue otherwise.

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Silly gameAr1279d ago

Don't say MS has lost any amount of money or hasn't turned a profit Gribble. We all know MS doesn't lose money, they only make it.

GribbleGrunger1279d ago (Edited 1279d ago )

What part of the headline and what part of my post are you people not reading? Did I say that Microsoft haven't made a profit or did I say that their gaming division is losing money? Let me just check that I'm not living in some sort of twilight zone here:

'Sony lose money from divisions NOT related to their games division and Microsoft lose money from their games division but not their other divisions.'

mmmmm... It appears that I am talking about their games division and not Microsoft as a whole. That'd probably because of this:

'Microsoft Q2: Xbox division revenues down 11%'

The headline I was responding to. Which part would you like me to change in order for it to be palatable but not accurate? I said that Sony was losing money on their other divisions but not on their games division, but it was the other way around for Microsoft (at the moment and going from this headline and the official report).

It amazes me how Sony losing money in other divisions automatically gets translated into their games division is losing money, but when Microsoft's profits are down on their games division people want to remind you that they made a profit overall. Jesus, how stacked do you people want this table?

Sony will carry on supporting their games division because that's what makes them the most money, while Microsoft will offer what makes them the most profit through their next gen machine... Windows, Kinect and other multimedia stuff. It's not a dig, it's just how I see it.

Yes, Microsoft made an overall profit, but their revenue was down from their games division. I'm just considering the possible ramifications of this and perhaps the reason their next gen console is rumoured to have more memory dedicated to the OS.

Death1279d ago

Hey Gribble,

If you think Microsoft isn't happy with the performance of the Xbox, check out what Sony is dealing with as far as the Playstation brand is doing: http://www.sony.net/SonyInf...

Sony's last fiscal year showed a loss in the Consumer Products and Services division of 2,083 million dollars. This is where the Game division is held. In all fairness, CPS is a very big division. but statements like "The decrease in the game business reflects lower sales of PlayStation®3 hardware due to a
strategic price reduction and lower sales of PlayStation®2 due to platform migration." isn't exactly a ringing endorsement.

The current fiscal year has the Game division losing 45 million for the first quarter and making 29 million in quarter 2. For the mathmatically impaired, that is a loss of 16 million for the first half of fiscal 2012.

So you are aware, both companies are using the revenue to fund new product development. As sales decrease the need for new product increases. They use existing revenue for R&D and to cover initial manufacturing costs. This is common for each console life cycle. Don't get too caught up in the sales and profit hype. It's controlled to a very large degree and not an indication of a consoles overall health or viability as a marketable product.

What should matter to most of us is the games we can play at the end of the day.

aquamala1279d ago

read the article, revenue is down but profit is actually up. 596 million this year, $517 million last year. you even get any agrees for getting basic facts wrong just showing what kind of people are on this site lol.

GribbleGrunger1279d ago

Ok ... Ok, I did say 'losing money' in the wrong context there. I know that 'revenue down' isn't exactly the same. Oh well, that'll teach me for paraphrasing and cutting corners. I stand by what I said though in terms of what it could mean for next gen.

InMyOpinion1279d ago

Do Sony pay you for posting on every single Xbox related story, or are you just that loyal?

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Darth Stewie1279d ago

This will be on top of N4G.

NYC_Gamer1279d ago

MS still made profit in the division though

KrisButtar1279d ago

"Although Xbox isn’t the only business stream in the division, Microsoft made it clear the console was to blame."

Mircosoft blaming their game console for not having bigger profits

BanBrother1279d ago

Haha. "Stupid xbox (hits it), why aren't you making us any money?"

I suppose the fact they still made a profit'is good.... but coming from a 360 owner I feel neglected, as they are using a butt-load of money to start new IP's......for Kinect, instead of the ones I'd like. I have a Kinect, which I bought for the youngins', but I have no particular interest in it. Untill I hear profit=more new IP's, I could not'give a rats ass.

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