Microsoft Q3 FY13: Xbox division revenue up 56% yoy

Microsoft has announced quarterly revenue of $20.49 billion for the quarter ended March 31, 2013. The Entertainment and Devices Division, which encompass Xbox 360 figures, posted revenue of $2.53 billion, an increase of 56% from the prior year period. Xbox LIVE now has over 46 million members worldwide, an 18% increase from the prior year period.

EDD revenue increased, primarily due to higher Xbox 360 platform and Windows Phone revenue. Xbox 360 platform revenue increased $641 million or 55%, while cost of revenue increased $275 million or 23%, due mainly to increased royalties on Xbox LIVE content and video games.

Research and development expenses increased $113 million or 28%.

For the Nine months ended March 31, 2013 compared with nine months ended March 31, 2012 EDD revenue increased, and Xbox 360 platform revenue decreased $864 million or 13%, due mainly to lower volumes of consoles sold, offset in part by higher Xbox LIVE revenue.

During this time, 8.9 million Xbox 360 consoles were shipped during the first nine months of fiscal year 2013, compared with 11.9 million during the same period in FY 12.

Cost of revenue decreased $117 million or 2%, due mainly to lower sales of Xbox 360 consoles, offset in part by payments made to Nokia related to joint strategic initiatives and increased royalties on Xbox LIVE content. Research and development expenses increased $351 million or 32%, primarily reflecting higher headcount-related expenses.

"Our diverse business continues to deliver solid financial results, even as we navigate the evolving device market,” said Peter Klein, CFO at Microsoft. “Looking ahead, we will continue to invest in long-term growth opportunities to drive our devices and services strategy forward and deliver ongoing value to shareholders.”

The company also announced Klein would leave the company at the end of the current fiscal year, after nearly four years in role and 11 years at the company. Microsoft will be naming a new CFO from its finance leadership team in the next several weeks.