Microsoft's Operating Income from Games Increases

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MicrosoftMicrosoft announced the financial results for its fiscal third quarter ended March 31, 2010:
For the quarter, Microsoft reported net income of $4.006 billion, compared to net income of $2.997 billion in the same quarter the prior year. Peter Klein, Microsoft's Chief Financial Officer, specifically mentioned Xbox Live among the company's services that saw strong growth during the quarter.

Of more interest to the business of gaming, Microsoft's Entertainment and Devices Division (that includes its gaming-related operations) reported revenues of $1.665 billion during the quarter, compared to revenues of $1.629 billion in the same quarter the previous year. EDD reported operating income for the quarter of $165 million, compared to an operating loss of $41 million in the same quarter the prior year.

EDD revenues were comparable to those of the previous year, but Microsoft attributed any increase to Xbox Live revenue, offset by the sale of fewer consoles. Microsoft shipped 1.5 million Xbox 360 consoles during the quarter, compared to 1.7 million consoles during the same quarter in 2009. Microsoft noted that "operating income increased due mainly to a $199 million... decrease in cost of revenue resulting primarily from lower Xbox 360 console costs, offset in part by increased online costs resulting from increased Xbox Live activity.

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This page contains a single entry by Editor published on April 22, 2010 3:37 PM.

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