Microsoft has released their quarterly revenue for the third quarter which ended March 31, 2013. Revenue for the quarter reached $20.49 billion, an increase from $17.41 billion during the same period a year ago. Operating income increased five percent to $6.7 billion.
"The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox LIVE, and Skype," said Microsoft CEO Steve Ballmer. "While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term."
The Entertainment and Devices Division, which includes the Xbox Division, saw revenue jump 56 percent to $2.53 billion when compared to the same period a year ago. Profits for the quarter were $342 million.
Revenue for the Xbox 360 platform increased 55 percent to $641 million. This was mainly due to the increased Xbox Live revenue and the $380 million in revenue due to the Video Game Deferral. Also Windows Phone revenue increased by $259 million.
Microsoft shipped 1.3 million Xbox 360 consoles in the quarter, which is down nine percent year-over-year. This brings the total Xbox 360 shipment to 77.2 million units. The total number of Xbox Live members increased by 18 percent to 46 million.
"Our diverse business continues to deliver solid financial results, even as we navigate the evolving device market," said Microsoft CFO Peter Klein. "Looking ahead, we will continue to invest in long-term growth opportunities to drive our devices and services strategy forward and deliver ongoing value to shareholders."
The Windows Division revenue increased by 23 percent to $5.70 billion. The Business Division, which include Office, saw revenue increase eight percent to $6.32 billion. The Server & Tools business revenue increased by 11 percent to $5.04 billion. Finally the Online Services Division revenue increased 18 percent to $832 million.
Microsoft has lowered its revenue expectations to between $30.2 billion and $30.5 billion for the full year which ends June 30, 2013. Microsoft also released its forecast for its 2014 fiscal year. The company expects revenue to increase from four to six percent from 2013. That would put revenue between $31.6 billion and $32.2 billion.