VG247:Microsoft has released its financial report for the third quarter, in which the firm generated $17.41 billion in revenue, a 6& year-over-year increase. Net income came in at $5.11 billion compared with $5.23 billion the prior year.
Time for a price cut MS you know you can afford it
They are really long over due for a price cut the xbox 360 hasn't had a price cut since what 4 or 5 years it's still amazing how well it's doing image a price cut. Anyways the xbox 360 itself was profitable the only reason the "xbox 360 division" is down is because of Windows phone and them paying Nokia to exclusively use windows phone only. Yeah but it sucks the whole gaming industry is going down it really is time for a new generation of consoles.
eh, you mean IMAGINE a price cut. or image of a price cut??. im sure you meant to say: 360 has'nt had a price cut since what 4-5 years its still amazing how well it's doing "IMAGINE" a price cut.
@morkendo23 No one likes a grammer nazi and tbh 99% of people knew what he meant. As for MS xbox profits falling its a clear sign of a price cut besides i bet its really cheap to build a 360 now!
The reason the industry is down is because we're still being charged $60 for these games. Out of the hundreds of games that come out only a handful are worth that price, imo.
It is time for a new generation. The market is so saturated with current consoles/used software for the current consoles that it is stagnating.
They are waiting for a ps3 cut to further undercut them. It's amazing to me how well they have done with basically 1 major exclusive a year. Next year will reach 2010 levels due to halo 4. The kinnect really has kept them atop the board as sony has released so many great exclusives. But, as the wii has shown it is gadgetry that sells. Look at the sales last week for kinnect star wars compared to mass effect. Good job microsoft. Now, at least a kinnect cut, which is coming in order to sell as many as possible before the announcement of new xbox and kinnect 2.0.
The problem is it's not only Microsoft seeing poor sales -- it's the entire console market. If it were just Microsoft, a price cut would be obvious. As it stands, it seems 50-50, but if I had to guess, we'll see one before the holiday season.
Hope this doesn't mean more ads on the dash.....
@ Dark 360 What are you quoting? I didn't see any of that in the article. Lol, people were bound to read the article for themselves, Dark. "The firm shipped 1.4 million Xbox 360 consoles during Q3 of fiscal year 2012, compared with 2.7 million during the same quarter of fiscal year 2011." "Revenue for the console decreased $584 million or 33%, due mainly to “decreased volumes of Xbox 360 consoles and standalone Kinect sensors sold, offset in part by higher Xbox LIVE revenue.” " Video game revenue decreased due to strong sales of Halo Reach in the prior year." Shame, all the consoles probably decreased for the year. Hope things pick back up. Edit: Nice edit, Dark. I don't think that's the reason for the decline though. I think MS might've over shipped last year. Their Nov and December numbers were down in 2011 compared with 2010 (They expected more people to buy more consoles), they shipped I believe 8 million 360 last year and actually sold 3.4 million.
EDD operating income decreased reflecting lower revenue, payments made to Nokia related to joint strategic initiatives, and higher other operating expenses. Research and development expenses increased $100 million or 35%, and sales and marketing expenses increased $79 million or 50%, primarily reflecting higher headcount-related expenses. Cost of revenue decreased $80 million or 6% primarily due to lower volumes of Xbox 360 consoles and standalone Kinect sensors sold, offset in part by payments made to Nokia Explains the losses From Road's quote: " Research and development expenses increased $100 million or 35%" In other words Xbox 720 is coming....
Daiiiiim (X720 gonna be gud)
EA spends about $1 billion each year in R&D and they got nothing to show for it. $100 million in R&D could really mean anything for MS and that's really too low for a big hardware push. I'm guessing the $100 mil is for the next Xbox Live incentive for holiday 2012. Plus those R&D costs would have been much higher in past years when they were actually researching and developing the 720. They're more than likely done with the R&D and are finalizing for shipping. If devkits are already available then technically it could launch later this year, but MS said they wanted to milk the 360/Kinect all through 2012 hence the 2013 launch for the 720.
Not sure why you are getting disagrees. MS invested $500 million into just advertising Kinect. I highly doubt the next console will only recieve $100 million for R&D.
Time for XBL price increase and more ads on the dash.
No there will be a price cut.Last one was when the slim released so its due now
That was to be expected. As we could see from the NPD numbers, the whole gaming industry is in a decline.
Microsoft came off their best year ever in 2011, it was highly unlikely that they would match that peak again. Its pretty obvious its time for a price cut and we will probably see one this year at E3. I don't think we'll see a new console this year though.
Yeah, it's about time for a price cut. If I remember right the last real one they had was in 2008 when the console dropped to $199. It's never gone lower than that since. The other consoles have had multiple price drops since then, to new low prices.
Maybe because the Hardcore are starting to leave the 360 because on the never ending focus on Kinect? I know that's why I left.
I dont know why you got so many disagrees. What you said is true.
No its probably because the console is 7 years old and the gen is slowing down/ending
1.4 million shipped this quarter. Phew, what a relief! After the massive 8.2 million last quarter, I was sure they must have overshipped and I thought the shipment might have been as low as 500K for this quarter. But 1.4 million is very good, around the same as the 360 usually ships in the Jan - Mar quarter, with the exception of last year's anomaly of 2.7 million. I still don't know how that happened. I guess Kinect is to blame. Now the 360 just needs to ship 1.8 million for fiscal Q4 2012 and it will be the 360's best fiscal year sales to date.
what a way to put it. Last year saw crazy high shipments for the Q ending march due to shortages. 1.4 million quite a good job. So far they are 100k ahead of their best financial year ever. extra 100 Million USD for R&D (Xbox 720 is incoming!) 250 Million USD to Nokia 75 Million USD more for marketing. (Windows phone) So yeah, Xbox 360 is a very healthy business right now.
"Net income came in at $5.11 billion compared with $5.23 billion the prior year." Aaaaaww poor MS, I guess no Christmas party on top of the moon being served by Polynesian cloned slaves on horseback this year. Its shame I know a few employees was looking forward to that again this yearn
I am just waiting for blog/news articles that will say that the consoles are doom because of this and Ipad is the future.
Its declining because there is no first party support, no games to get excited about.
Have you heard about Darksiders 2, Borderlands 2 and Halo 4?
Two of those are not exclusives though. Only Halo 4 is. You should have gone with Halo 4, The Witcher 2 (console exclusive), Minecraft (console exclusive), and Crytek's exclusive shooter. I'm not terribly excited about any of them, but I thought I'd help.
Forza horizons as well.
They have a six and a half year old console, exclusives on the horizon that start and end with a basic yearly installment of the Halo and Forza franchises. My hope is they are saving some new IP's for the new console, because the future is somewhat bleak. I am enjoying the hell out of The Witcher 2, though. Great RPG.
Forza has never been a yearly release and each game came with improvements, horizon shares the forza name only, ex bizzare devs has me excited loved msr and pgr
This tells us its time for a new console. M$ continues to do well as a business, but next year is going to be tough as an xbox gamer.
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