Microsoft Q3 – Xbox 360 division declines 16% due to “soft market”

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.

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Cocozero2404d ago

Time for a price cut MS you know you can afford it

blue7_72404d ago (Edited 2404d ago )

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.

morkendo232404d ago (Edited 2404d ago )

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.

TheUnbiasedLion2404d ago


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!

WrAiTh Sp3cTr32403d ago

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.

JsonHenry2404d ago

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.

joab7772404d ago

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.

enfestid2403d ago

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.

+ Show (1) more replyLast reply 2403d ago
NYC_Gamer2404d ago

Hope this doesn't mean more ads on the dash.....

Dante1122404d ago (Edited 2404d ago )

@ 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.

Dark3602404d ago (Edited 2404d ago )

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....

sack_boi2404d ago

Daiiiiim (X720 gonna be gud)

vortis2404d ago (Edited 2404d ago )

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.

BitbyDeath2404d ago (Edited 2404d ago )

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.

StrongMan2404d ago

Time for XBL price increase and more ads on the dash.

cynosure2404d ago

No there will be a price cut.Last one was when the slim released so its due now

YodaCracker2404d ago

That was to be expected. As we could see from the NPD numbers, the whole gaming industry is in a decline.

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