360 Revenue Drops 29 Percent

The Wooster

King Snap
Jul 15, 2008
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360 Revenue Drops 29 Percent


It's been a profitable year for Microsoft, but the 360 is flagging.

Those of you clinging to the PS3 in the great waste of time and energy that is the 7th generation console war may begin the celebrations; it's been a tough three months for the Xbox 360.

Microsoft's quarterly revenue for the 360 platform is down 29 percent from the same period last year, according to a recently released fiscal report. While Microsoft tallied some US$21.46 billion in revenue during the second quarter of its 2013 fiscal year (that's October 1st, 2012, to December 31st, 2012, for those of you who don't live in bizarro finance land) the company's Entertainment and Devices Division - which covers the 360 platform, Windows Phone and Skype amongst others - recorded an 11% decrease in revenue.

All is not lost, however. The company did report a substantial amount of deferred revenue; IE: money acquired for a product not yet delivered. Apparently "sales of video games with the right to receive specified software upgrades/enhancements," have made Microsoft some $380 million. If you were to add that revenue to the Entertainment and Devices division earnings, the adjusted revenue would bring the decrease down to a more palatable 2 percent.

The 29% decrease, despite being offset by the launch of the Windows 8 phone in October, equates into $1.1 billion dollars of lost revenue. Microsoft is pinning the decreased revenue on the slowing sales of the 360 console. The company shipped only 5.9 million units in the second quarter, down from 8.2 million in the same quarter of last year. Research and development costs also shot up, increasing by $98 million as the company hires more staff. No prizes for guessing where all that money and manpower is going.

Source: Microsoft [http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY13/Q2/default.aspx] via Polygon [http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY13/Q2/default.aspx]


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AstaresPanda

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Nov 5, 2009
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so sdo they all seem to forget everyone is broke these days and are not stupid enough to invest in a console when its just about to be replaced ?
 

porpoise hork

Fly Fatass!! Fly!!!
Dec 26, 2008
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Revenue probably bottomed out on account that M$ has finally figured out how to get the 360 so it will actually last some significant time past its warranty period with out throwing a rrod.
 

Magnethead

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Feb 1, 2011
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(that's October 1st, 2012, to December 31st, 2013, for those of you who don't live in bizarro finance land)
That's a fairly long financial quarter. Their predictive abilities are quite impressive though ;-)
 

Souplex

Souplex Killsplosion Awesomegasm
Jul 29, 2008
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Who would have thought that sales around the slowest time of year would be significantly less than sales around the most profitable time of year.
This isn't really news. Sales go down in January.
 

Little Gray

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Sep 18, 2012
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Souplex said:
Who would have thought that sales around the slowest time of year would be significantly less than sales around the most profitable time of year.
This isn't really news. Sales go down in January.
I guess you didnt bother actually reading the article. They are comparing October to December sales of 2012 to those of 2011. They are also not talking about January sales at all.
doggie015 said:
(that's October 1st, 2012, to December 31st, 2013, for those of you who don't live in bizarro finance land)
Do you even proofread anymore?
Did they ever?
 

NotSoNimble

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Aug 10, 2010
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'December 31st, 2013'

and

'The company shipped only 5.9 million units in the second quarter'

Yep, I am way too drunk to read this this properly as something bad. Call me a fanboy, or more correctly as a drunk... please.

Next thing ya know, this website will try to tell me that people don't like the Call of Duty series.

lol
 

Reaper195

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Jul 5, 2009
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You know...I'd be much more interested in which console is coming out on top if they had more significant exclusives. Although the PS3 has a fair few more than the 360, not that many are that fantastic (In fact, only Naughty Dog seems to be making the good ones).
 

Strazdas

Robots will replace your job
May 28, 2011
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Well, a business analyst predicts Microsoft going down.
Microsoft goes down.
Why am i not surprised.
 

Palademon

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Mar 20, 2010
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Market saturation maybe? Everyone who wants one has one?

Wait, a minute...maybe that's why they made them cheaply so that they break...to make 360s renewable consumables.
 

SonicWaffle

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Oct 14, 2009
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porpoise hork said:
Revenue probably bottomed out on account that M$ has finally figured out how to get the 360 so it will actually last some significant time past its warranty period with out throwing a rrod.
Yeah, they did that years and year ago. Mine's still working fine after almost five years of use.

C'mon, people, let the "Xbox always RRODs hurr durr" thing die, cant you?

Captcha: I'm blessed. Ha!
 

SonicWaffle

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Oct 14, 2009
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Grey Carter said:
The company shipped only 5.9 million units in the second quarter, down from 8.2 million in the same quarter of last year.
That's kinda...stupidly impressive, if I'm honest. 5.9 million units in the space of three months. Of a product which has been available for over seven years, particularly in a period of economic slump. Who are all these millions of people thinking "well, I have less money now and it's a pretty old machine, but what the hell - time to get that Xbox I've been eyeing up!"
 

Bvenged

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Sep 4, 2009
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DustyDrB said:
Well, they can always put more ads on the dashboard.
+1 to the sarcasm that MS will look at as a genuinely good idea.

Damn you, MS. I'm a more loyal customer of Steam now because of your bullcrap. Anyway, they're still making a massive profit, no?