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MS Earnings Shows Xbox Div Profit

Microsoft has posted its earning for it's fiscal fourth quarter of 2008, posting the full fiscal year results alongside it. The company on a whole posted a $60.42 billion revenue for the year, up 18% over 2007.

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GiantEnemyCrab3800d ago (Edited 3800d ago )

Monie, monie, monie.

Come on MS now drop the prices of your HDD's!!

"According to the report, Microsoft shipped 1.3 million Xbox 360s in the three months ending June 30th; this compares to about 700,000 shipped in the same period last year. For all of fiscal 2008 the company shipped 8.7 million consoles, compared to 6.6 million the year before."

Since prices generally haven't increased I would say the 360 has been seeing an upswing not a downswing like many people claim. No wonder MS has been bullish with its console pricing.

NO_PUDding3800d ago

And yet.... PS3 is still beating it.

Fact... Please don't hate.

PimpDaddy3800d ago

Your right the PS3 is outselling the 360. It's also costing Sony more money than Microsoft. See unlike Sony, Microsoft is making money in it's gaming division. Thats even with the Zune hurting it's overall numbers.

On the other hand the PS3 is bleeding Sony Computer Entertainment so badly it wipes out any positive numbers from the PSP and PS2.

Fact... Please don't hate.

NO_PUDding3800d ago

No hatred at all... but you'll notice that the PS3 costs more, and has been out less tiem than the 360.

That affects this directly, and that's a fact too.

Eitehr way you look at it, Sony is doign pretty good, atleast better than 360 was doign respectively... and the PS3 is dealign with a saturated market. Shocking really.

karlostomy3800d ago (Edited 3799d ago )

Lol dude.

Given the precedent of the outlandish success of its predecessor (ps2), the PS3 sales are woeful. (FACT)

SONY are still in third place (FACT) and will most likely remain there throughout 2009 and 2010 and 2011 as they have no way of matching the dropping 360 pricepoint! (FACT)

Sony knows this and has been forced to sell their hardware at below cost, to even remain in the game. (FACT)
http://www.ps3fanboy.com/20...
I would not brag to anyone about the PS3 sales while they are making horrendous losses on each and every PS3 sold!

Make no mistake, PS3 is Leaking money like there's no tomorrow (FACT) and with each desperate attempt to claw back market share, the situation is getting worse. (FACT)
http://www.n4g.com/industry...

Not even the games that Sony has on their console can match the 360's superior effort, both multiplat and exclusive (FACT)
http://theexplodingbarrel.c...

Exclusives that once were the selling point of the ps2 are coming to the 360 one by one (FACT)
http://www.n4g.com/events_e...
http://au.gamespot.com/news...
http://www.joystiq.com/2006...

In point of fact, Sony and SDF alike should not be bragging about *anything* while this woeful situation continues...

Until the day that the PS3 turns a profit and outsells the 360 worldwide, they should all eat humble pie and STFU!

(FACT)

Obama3800d ago

Hitler, ps3 will outsell the 360 in 2009. FACT.

1 year lead the 360 first got outsold by the wii, then is catching up by the ps3. Pitful. A 10 million lead became a 4 million lead. haha.

karlostomy3799d ago (Edited 3799d ago )

I looooove it when you call me Hitler!
It just proves that you have no intelligent counter to my argument.
Lol what?... no RROD comment?
You are slipping obama....

By the way, I will expect a congratulatory PM from you by the end of 2009 when you are (once again) proven wrong.

NO_PUDding3799d ago

To be fair, half the things you said weren't facts are were predictions.

And predictions can't be facts.

So even if he said Hitler, you have just totally embarassed yourself.

And if the PS3 is doign badly in comaprison to the PS2, then imagine how badly the 360 is doing in comparison to the PS2? Woeful you say? There isn't even a word for the 360's performance.

karlostomy3799d ago

All my assertions were backed by industry links and are facts.

Here's the list again
1. PS3 Sales should be much better (ok. my opinion)
2. PS3 is in third place (fact, with link)
3. PS3 can't match pricedrops (fact, with link)
4. PS3 is still sold at a loss (fact, with link)
5. PS3 has accumulated tremendous losses (fact, with link)
6. PS3 multi/exclusives inferior (fact, with link)
7. PS3 exclusives are coming to 360 (fact, with link)

All of the above, bar one, are facts with links.

Don't hate, no_pudd....!

+ Show (5) more repliesLast reply 3799d ago
Angelitos3800d ago (Edited 3800d ago )

HaHa, GiantEnemyCrabs sticking with M$ that bribes game, and has overpriced hdds.

Montrealien3800d ago

so many comments, so many agrees and disagrees for so little approvals and report, odd no?

thekingofMA3800d ago

just be thankful that he's down to one bubble and you have to click 'view' to see his comment-

also be happy he dropped the "poor xbots," thing-

maybe it's a sign of maturity for that pathetic bastard?

Montrealien3799d ago (Edited 3799d ago )

I could swear he had two bubbles when I said that though. And at the time there where about 5 comments in both the gamer zone and open zone with a bunch of agree and disagrees across all comments with no reports or approvals. That is what I was commenting really.

Montrealien3799d ago

wow, that comment alone got me 6 dissagrees and 10 tracked users, hmmmm

Xi3800d ago (Edited 3800d ago )

It means that MS is going to try to remain a dominant factor in gaming, and competition is always good.

mcgrawgamer3800d ago

but it pretty much stabilizes their shareholders and investors concerns that they can actually make a profit the gaming space. At this point whether they "win" these so called console wars or not they are making a profit and that alone will keep them relevant in the industry.

morganfell3800d ago

It is not a good sign, it is a deceptive sign and the writers of that article are too financially ignorant to understand it. People like Giant Enemy Crab are easily deceived as well.

Revenue does not equal net profit income. You have to take revenue and then remove all the operating costs. This includes over a billion dollars to cover RROD.

At least we can see the article doesn't say the revenue = profit AFTER subtracting the RROD loss. They simply say it was charged back. It was charged back along with all of the costs. That has to be subtracted from the 1.575 billion. By the time you factor in all MS costs for the Xbox/Zune division I would guess they will be in the red....a loss.

nordberg3800d ago (Edited 3800d ago )

But still have a profit of 426 million for the year (thanks to software (PC and Xbox360)). Impressive after a loss 1969 million in 2007 fiscal year.

kewlkat0073800d ago (Edited 3800d ago )

MS, year to year gains?

If they did better than last year then it's still a positive and a step in the right direction.

Right here it says profit $426 million PROFIT..

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

I think that's after you minus expenses..
You FAIL.

PimpDaddy3800d ago (Edited 3800d ago )

Maybe the financially ignorant person is you. The article is correct. I have broke down the article just for you so you don't sound so ignorant in the future.

That 1 Billion RROD charge was for the end of Fiscal Year 2007. So Fiscal Year 2008 which just ended does not include that.

"compared to a loss of $1.223 billion for the fourth quarter in 2007—during that quarter, Xbox 360 warrantee expansion charged $1.1 billion back to the division"

Microsoft lost money this past quarter that just ended thier fiscal year.

"The Entertainment Devices division, which containts the Xbox 360 and PC gaming business as well as the business for Zune, Microsoft Service and other devices and platforms posted $1.575 billion in revenue for the quarter, compared to $1.153 billion for the same period last year. This came out to a quarterly operating loss of $188 million"

But as we can see for the whole fiscal year 2008 they did make a profit. Also remember that the Entertainment division isn't just the 360, but PC, Zune, etc...

"Revenues for the division for the year came in $8.140 billion, compared to $6.069 billion for fiscal 2007. The division also posted a $426 million operating profit for the year, compared to the previous year’s loss of $1.969 billion. According to the report, Xbox 360 and PC gaming revenue for the year was up $1.7 billion, or 41%."

morganfell3800d ago (Edited 3800d ago )

No because I understand two very basic terms - revenue and profit. And I understand the difference between them. The writer of that article is a daft idiot for either A - not knowing the difference or B - knowing the difference and intentionally misleading people. Either way the article isn't worth the paper it would take with which to wipe my rear...and I don't use much. And the writer of the article, this clown Joe Keiser needs to buy himself a dictionary. First he had better make sure the money for the dictionary is from a net profit and not revenue.

OOG3800d ago

Net profit is a very important thing....but dont downplay revenue...of course once you consider every cost and expense you will get to your net profits and then you have to go figure out the shareholders take etc....

The only way you can really make a comment and judge the revenue is by seeing units sold of each product etc and compare to year b4 and compare the expenses etc etc etc.....

you trying to act like you smart by saying NET PROFIT but anyone who opens up a business book knows what net profit is...not like its a bright secret

uxo223800d ago (Edited 3800d ago )

Here are three words you need to learn.

TROLL!
GO AWAY!

Zeevious3800d ago (Edited 3800d ago )

with some significant additional details including an excerpt from Microsoft's COO.

37% year-over year increase & 34% increase in sales to 8.1 billion in total revenue.

The 427 million is up from the 2 billion loss the previous year, and it is being reported as a first-ever profit.

That statement cannot be made legally to shareholders if it does not comply with SEC requirements for publicly traded companies.
On that basis I would have to disagree with Morganfell.

If you do have information to the contrary you should let the SEC know of this discrepancy.

Although I may be accessing my system remotely at the moment, the numbers still add up in both Excel and Open Office. (and my phone too)

+ Show (6) more repliesLast reply 3800d ago
kewlkat0073800d ago

MS is now considered a threat.

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