Microsoft: EDD Profits Triple as X360 Shipments Slowdown - News

@whatever
Sorry mate but i disagree. On the gaf website someone summed it up perfectly
"It is like a football match, say man utd vs man city. Man utd win the game but rather then talk about the 5-0 win they decide to talk about the star defender who could be about to leave, even though he says he is staying".
It is the same principle.

Don't get me wrong im not having a go at the source as 99% of the time i agree with him, he does a lot of good work for this website and should be respected for it.
But to say things are on the slide basically after making the most money a compnay has ever made in 3 months is just silly. That is not bias that is telling it as it is.

XBL : that's a 60% connected rate.

"Revenue is decreasing for the division though, so this could well be the peak of the profis for the division for awhile, as more price cuts will inevitably come for the X360."

Revenue and profits aren't that correlated dear, especially in markets with huge sunken costs ;-)

Am I reading that last graph correctly? It has Q2 FY10? Are the projecting into the future?

Good grief guys, are you really that sensitive? I can understand trying to explain or defend why shipments are down, but what you're basically doing is the internet equivalent of sticking your fingers in your ears and going LA-LA-LA. "Get the bad news outta here, we only want the good." The news is not aimed to please, otherwise you would only get half-truths.

Revenue is irrelivant as the profits are much higher in the past years. The revenue would only be a worry if profits for the division were slowing or erratic aswell. Which they aren't. The EDD is pretty much going to make a profit every quarter from now on barring some huge investments into a new console. Buts thats still a few years away.

This post while accurate is not disccusing the correct numbers for the EDD. Revenue for the EDD was 2.9 billion, it's the operating income (revenue minuses expeneses) that actually matters.

The EDD division posted a $375 million operating income vs $130 million for the same quater last year. Very impressive, MS has clearly cut the costs and is now reaping the rewards.

I would reccomend for future posts on Quaterly reports to discuss the Income numbers.

if we wanted your opinion we would read an opinion artical... so leave that stuff out the door on these kinds of articals

@Hyruken

You are the one showing you bias. Nowhere does this article mention how M$ as a whole did. This site is only interested in the EDD division. Did M$ have a great quarter, yes. Are there things they should worry about going forward, like decreased 360 sales and decreased revenue, yes. That's all this article is saying.

MS did excellent. Not real sure this can be looked at in any negative light.

@slowburn
It is an analysis of data that is reported wrongly.
The report is trying to make out that it is not that great, it has nothing to do with liking or not liking Microsoft.
The company just posted a three month RECORD. Do you see that mentioned there?
Correct me if i am wrong but how is making the most money in three months bad? That is like saying someone who won a gold medal and broke the world record by doing it did bad, that is stupid.
The company just broke the three month record, that is a great achivement. You look at every other news report and not one will have a negative thing to say about it.

@maxime
What the hell are you talking about?! Who said anything about natal? If your refering to what i qouted i did not say that, the report did, which just makes what you say stupid because you would be agreeing with me in that natal will not reverse the sales decline, as i said a price cut would. It has got nothing to do with being a fanboy or licking ass etc.. They just pummeled Nintendo and will most likely pummel Sony's numbers too, at least report them as they are.
As for the rest of what you said it makes zero sense. Microsoft only made money because of MW2? Do you not reallise how stupid that makes you sound?

These results clearly show that EDD is now a profitable venture for M$ and it will continue to be into the future. Sales of the 360 slipped, but I think we are going to see a ramp up YOY in 12 months with the launch of Natal. Without the Japanese marketplace, the 360 will never be able to match Nintendo and Sony...except for profits, which is most important, since this is about making money!

kowenicki says:
So the headline is "360 slows".... not edd profits up 200%, not 4th straight qtr of profit, not games record attachment rate, not LIVE up 35%. sigh.

No, the headline is "Microsoft: EDD Profits Triple as X360 Shipments Slowdown," and given that you missed 80% of that I'd suggest you get checked out for a learning disorder. That's some pretty serious lack of reading comprehension you're showing.

Didn't MS end production of a much of devices that were losing them money? I'm pretty sure this is more a matter of stopping unnecessary losses rather than actually improving on the projects that remain active.

@maxime001
Stop Trolling

@Hyruken, umm . . . I just read this and I completely understood what the article says. It is an analysis of data that has been received. I think almost everybody is aware that the 360 has saturated the market and these numbers only confirm what everybody already new. Unless this has something to do with your personal life (are you an x360), Why So Serious?

Seriously VGchartz can be the only website in the world which puts up a title "Microsoft PROFITS TRIPLE but shipments slowdown".....

Then basically say the gaming division which made $375M PROFIT (up from $130M) = BAD.

Feck nearly 99% of companies out there right now would kill for those kind of numbers.....

As for the whole "decline" paragraph was that really needed? That is personal opinion which seems totally out of odds with the figures.

"Natal will be able to reverese this decline".....

Two words, "Price cut".

I look forward to this guy trying to put the positive spin on Sony's numbers next month when they obviously report another huge loss.
But somehow i doubt the tone of the article will match that either....

These are great number for Microsoft. 360 hardware must be very profitable and has been for a while. They are really primed to introduce both Natal and a price cut.

Not sure why Jacob Mazel chose to highlight a rather arbitrary 12 month period comparison, and apparently compare it to rolling ones at that which makes zero sense. At least do something that makes sense like compare fiscal years or like quarters. Just as the Nintendo earnings writeup on this site seemed biased to make Nintendo look good (little mention of Nintendo's drastically falling profits or slowing sales) this one seems designed to make MS look bad.

@kowenicki

Unless you work for M$, it's pretty silly to get all worked up by someone pointing out the facts.

I preditcted 500m profit, but I guess WinMo killed it... and the R&D for Windows Mobile 7 which will be presented in February. I forgot about this. Poor me.

The 39m figure appears to have been either a) a rounded estimate or b) through some time in January. I'd imagine its the latter.

I guess at about $400m so not far off, looking back at another thread I notice some predicted $500m.

Good for MS, but disappointing for those you predicted so much more.

its just laughable how much money ms make. hats off!

38.7m LTD.
So "over 39 million" is a lie???

Also remember Microsoft Windows Mobile Marketshare continues to decline drastically. Marketshare declined 20% YoY the previous qtr and no reason to expect that the decline didnt continue YoY during this qtr. Lots of people picking up iPhones as Christmas presents.

I see the news here as mixed, so if you're an optimist or a pessimist you are going to be pissed that I mentioned both the good and the bad.

@kowenicki: It only states shipments slowed... and they did drop YOY.

@kowenicki,

We have seen the bias for awhile now.

An interesting item on the slide. Console mix shift to Elite and Special Editions. The lack of a Holiday Bundle for the Arcade (The 1st time MS has has an Xbox or Xbox 360 sold without a Holiday bundle since the Xbox 360 launch) pushed people to the Elite, another console or no console purchase at all. That to me was the one flaw with MS holiday strategy in 2009.

Secon half of the year will be crucial.

Xbox 360 LTD???