Amidst wrestling with the public perception of the Xbox 360’s
apparent hardware quality, Microsoft’s Entertainment and Devices division
reported a profit for its third quarter.
Thanks to “robust demand” for Xbox 360 consoles, the Entertainment
and Devices arm of the software giant saw revenue for the quarter grow 68
percent over the comparable period last year. The division had an operating
profit of $89 million for Q3.
"During the three months ended March 31, 2008, Xbox
platform and PC game revenue increased $418 million or 85% primarily as a
result of increased Xbox 360 console sales, Xbox 360 video game sales, and Xbox
Live revenue," the company said.
"Xbox platform and PC game revenue increased $1.4 billion or 42% during
the nine months ended March 31, 2008, as a result of increased Xbox 360 console
sales, video game sales led by Halo 3, Xbox Live revenue, and Xbox 360
Interestingly, the Xbox 360 was one of the bright points for
Microsoft even though the company claimed that its console was in short supply for
months of 2008. For the fiscal year to date, however, Microsoft said
that sales were up 34 percent to $6.57 billion, with 7.5 million Xbox 360s
For 2008 thus far, 1.3 million Xbox 360 consoles were
shipped, bringing the cumulative console sales to more than 19 million. The
Zune music player, which shares the division with the Xbox 360, is also said to
be a contributing factor the operating profit, though Microsoft did not go into
Nearly a year ago, Microsoft’s Robbie Bach forecasted that
360 division will turn a profit in 2008, something that has come true for
at least the past quarter.
Microsoft said that it expects further increases in revenue
for its Entertainment and Devices division thanks to the upcoming release of Grand Theft Auto IV, which is expected
to drive sales of both Xbox 360 and PlayStation 3.
quote: 1.) PC online multiplayer is FREE, along with CHAT programs.
quote: Upon inserting the disc, I was told I needed to install it to the hard drive. Sigh... twenty minutes later, I can finally play. Wait, no I can't, I have to download an update. With 360, it prompts you to download the update, and then does it when you press a single button. With PS3, it says you have to go out to the XMB, select system, then system update.
quote: It is debatable whether the Xbox LIVE fee is actually worth it.
quote: Some people I know who own PS3s seem to tout that PSN stacks up pretty well to LIVE.
quote: 1. Mandatory hard drive. I know it's been beaten to death, but that's because it's important. It's vital for games and for content download - Microsoft's focal point with the 360.
quote: 2. Higher-density optical media. This one is debatable. DVD9 is more than adequate for the majority of games, but developers behind more epic titles are starting to complain... The 360 should be just fine for the remainder of this generation though, so... NBD. After all, a game like Mass Effect worked out great, so I can't complain... but in a dream world, the 360 would have built-in HD/BD.
quote: 3. Free online play. I've been a Live subscriber since the beta, I don't mind paying at all, but I'm hoping that eventually the revenue brought in from ads and purchased content will allow for free Live service for all.
quote: 2. Higher-density optical media. This one is debatable.
quote: Where are the Zune sales figures? After the news of the "Plays for Sure" sunset, I'm almost glad I didn't buy one.