Microsoft Reports Ongoing Gaming Revenues and Strong Full-Year Results

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MicrosoftMicrosoft reported its financial results for its fiscal fourth quarter and full financial year ended June 30, 2010:
For the year, Microsoft reported net income of $18.760 billion, compared to net income of $14.569 billion in the previous year. For the fourth quarter, Microsoft reported net income of $4.518 billion, compared to net income of $3.045 billion in the same quarter the previous year. The growth in the company's net income was attributed to sales of Windows 7 and the launch of Office 2010.


Microsoft's Entertainment and Devices Division (that includes Xbox 360 and PC gaming operations) reported revenues for the year of $8.058 billion compared to $8.035 billion in the previous year. For the quarter, the division reported revenues of $1.600 billion, compared to $1.257 billion in the same quarter the previous year. EDD reported operating income of $679 million in the latest fiscal year, compared to $108 million in the previous year. For the fourth quarter, EDD reported an operating loss of $172 million compared to an operating loss of $141 million. So, while EDD reported a larger fourth-quarter operating loss, the division made a lot more money this year than last.

Reflecting on the ED Division's performance, Microsoft noted that the fourth quarter operating loss was strongly influenced by lower revenues per console sold combined with the discontinuation of the Kin phone and increased Xbox Live royalty costs. For the year, EDD's income increased due to reduced operating expenses. In both cases, it appears that dumping the Kin phone line hurt the division's bottom line far more than game-related performance.

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This page contains a single entry by Editor published on July 22, 2010 5:43 PM.

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