Microsoft Q3 - Xbox 360 division declines 16% due to "soft market"
Microsoft has released its financial report for Q3 which showed a 16% revenue decline for the Entertainment & Devices Division, in which the Xbox 360 division falls under. Revenue for the division came in ta $1.62 billion, with the decline blamed on "a soft gaming console market."
Xbox remained the top-selling console in the US for the 15th consecutive month, as reported by NPD earlier this month.
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."
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.
For the nine months ended March 31, 2012 compared the same period in 2011, Xbox 360 platform revenue decreased $154 million or 2%, due to "decreased volumes of standalone Kinect sensors sold and lower video game revenue, offset in part by higher Xbox LIVE revenue.
The firm 11.9 million consoles during the first nine months of fiscal year 2012, compared with 11.9 million Xbox 360 consoles during the first nine months of fiscal year 2011. Video game revenue decreased due to strong sales of Halo Reach in the prior year.
“We continue to execute well across our businesses, and we are seeing robust demand for our enterprise products and services,” said Kevin Turner, division COO. “Our investments and offerings in the database platform and public, private, and hybrid cloud are helping our customers transform their operations to meet today’s evolving business demands.”
Overall, 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.
“We’re driving toward exciting launches across the entire company, while delivering strong financial results,” said CEO Steve Ballmer. “With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead.”