Microsoft Ships 1.5m X360s in Apr-Jun 2010, 10.3m in FY - News
by VGChartz Staff , posted on 22 July 2010 / 5,117 Views
Microsoft's earnings report for the year ending June 2010 and the quarter ending June 2010 has just arrived. For the June quarter, Microsoft had revenues of $16.039 billion - up from $13.099 billion in the June quarter of 2009. Microsoft revenues for the year ending June 2010 increased to $62.484 billion, up from $58.437 billion in the year to June 2009. Microsoft profited $4.518 billion for the quarter and $18.760 billion for the year - both figures are up. In the June 2009 quarter Microsoft profited $3.045 billion, and in the June 2009 year Microsoft profited $14.569 billion.
Microsoft's EDD (Entertainment & Devices Division) which "includes the Xbox 360 platform (which includes the Xbox 360 gaming and entertainment console, Xbox 360 video games, Xbox LIVE, and Xbox 360 accessories), the Zune digital music and entertainment platform (“Zune”), PC software games, online games and services, Mediaroom (our Internet protocol television software), the Microsoft Surface computing platform, Windows Mobile and Embedded device platforms, application software for Apple’s Macintosh computers, Microsoft PC hardware products, and other devices. EDD is also responsible for all retail sales and marketing for Microsoft Office and Windows operating systems," posted a loss of $172 million on revenues of $1.600 billion for the June 2010 quarter. In the prior June quarter, EDD earned revenues of $1.257 billion, with losses at $141 million.
Microsoft states "EDD revenue increased reflecting an increase in Xbox 360 platform and PC game revenue and increased revenue from the non-gaming portion of the business. Xbox 360 platform and PC game revenue increased $228 million or 30%, primarily reflecting increased Xbox 360 consoles sold and increased Xbox LIVE revenue, partially offset by decreased revenue per console. We shipped 1.5 million Xbox 360 consoles during the fourth quarter of fiscal year 2010, compared with 1.2 million Xbox 360 consoles during the fourth quarter of fiscal year 2009. Non-gaming revenue increased $115 million or 23%, primarily reflecting increased sales of Windows Embedded device platforms."
With 1.5m X360s shipped for the quarter, X360 shipments stand at 41.7m units worldwide. Microsoft also says Xbox LIVE membership has passed 25 million as of June 2010. Annual Xbox Live Digital Marketplace Revenue has also surpassed Xbox Live Subscription Revenue for the June 2010 fiscal year.
The company appears to be blaming the EDD loss for the quarter on the KIN -
"EDD operating loss increased primarily reflecting increased operating expenses, offset in part by increased revenue. Cost of revenue increased $251 million or 38% primarily from charges resulting from the discontinuation of the KIN phone and increased royalty costs resulting from increased Xbox LIVE digital marketplace third-party content sales. Sales and marketing expenses increased $73 million or 29% primarily due to increased Xbox 360 platform marketing activities. Research and development expenses increased $48 million or 10%, primarily reflecting increased third-party development and programming costs and increased headcount-related expenses."
During the year ending June 2010, Microsoft EDD had $8.058 billion in revenues, with profits of $679 million. In the prior year, the division had revenues of $8.035 billion and profits of $108 million.
Microsoft did not issue a forecast for the June 2011 fiscal year with regards to how well Kinect / X360 will perform, but the EDD portion of Microsoft is expected to see "mid-teen revenue growth (+15%)". With the X360 Slim launch in mid June and July the next quarter should get June 2011 fiscal year off to a good start for the Redmond giant.
Contact Vgchartz at jmazel@vgchartz.com
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decreases due to the inevitable switch to Windows Phone 7... hopefully it does well
@TheSource
Yes, that sounds reasonable. Thanks for that insight.
Yeah, that is a pretty good explanation. It will be interesting to see how shipment figures will stand for the next fiscal year, after the release of the Slim/Reach/Kinect :-)
This is just speculation on my part, but I feel like they probably had to clear out the channel for the X360 Slim...and so they may have shipped virtually no X360s for a month, a few weeks - some amount of time - and then they had one big shipment in mid June for the Americas. So the X360 Slim shipment for Europe wasn't even in the quarter, and they shipped virtually nothing in preparation - that kind of thing could hurt revenue / profit.
Didn't expect a loss, but it's understandable given all the new products to be launched between now and the Fall...WinMo7 phones, Kinect, and the new 360S...
