Microsoft's Gaming Business Makes Less Money

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Microsoft announced its financial results for its fourth quarter and full fiscal year ended June 30, 2009:
For the fourth quarter, Microsoft reported net income of $3.045 billion, compared to net income of $4.297 billion in the same quarter the previous year. For the year, Microsoft reported net income of $14.569 billion compared to $17.681 billion the previous year. As Microsoft's Chief Financial Officer Chris Liddell explained, "Our business continued to be negatively impacted by weakness in the global PC and server markets." But FI readers are probably more interested in the results of Microsoft's Entertainment and Devices Division (EDD) that includes the company's game-related businesses.


EDD reported revenues of $7.753 billion for the year compared to revenues of $8.206 billion in the previous year. For the fourth quarter, EDD reported revenues of $1.189 billion compared to $1.590 billion in the same quarter the previous year. EDD also reported an operating loss for the fourth quarter of $130 million compared to an operating loss in the same quarter the previous year of $171 million. For the year, EDD reported operating income of $169 million compared to operating income of $497 million last year.

Microsoft noted that "Revenue from our Entertainment and Devices Division decreased across most lines of business including Xbox 360 platform and PC game revenue which declined primarily as a result of decreased console sales and revenue per console due to price reductions during the past 12 months, partially offset by increased Xbox Live revenue." Microsoft shipped 11.2 million Xbox 360 consoles during the fiscal year and 1.3 million during the fourth quarter.

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This page contains a single entry by Editor published on July 23, 2009 5:44 PM.

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