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Xbox division profits double

dolemite

Member
The earnings statement is out, apparently:
E&D operating profit, however, nearly doubled, going from $159 million to $312 million during the quarter, which saw the launch of the already multiplatinum 360 shooter Halo 3: ODST. The game was the top US title for September, the same month which also saw the $300 Xbox 360 Elite price drop in full effect.
Halo ODST is probably to blame for the healthy profit. Also, apparently 34 million Xbox 360's are shipped worldwide.
source
 
[UPDATE] In a conference call with analysts after the report, Microsoft investor relations general manager Bill Koefoed dropped more details on game revenue. For the quarter, overall gaming revenue was up nearly $100 million dollars, with Xbox Live revenues increasing 50 percent.
Hmmm.... I wonder what all the money from Live is coming from. GTA DLC? Any new XBLA releases? More subscriptions?
 

MechDX

Member
TitaniumGroceries said:
Hmmm.... I wonder what all the money from Live is coming from. GTA DLC? Any new XBLA releases? More subscriptions?


Someone had a $30 sale on LIVE 12 month cards.:D
 

AstroLad

Hail to the KING baby
Well deserved. With the way they handled the rrod situation and cleaned up their act w/r/t build quality I don't see how even sonyfans could hate them anymore. Competition is a GOOD THING.
 
I would also have to surmise that on top of the Halo:eek:dst release, that the cost cutting measures they have been implementing over the course of the year has been paying off.

- cutting staff
- taking components out of their sku's (even if it only saves them less than 5 dollars a console thats still a lot of money over the quarter.)
- etc.

I'm glad that they made a profit, now give me a NEW MECHWARRIOR GAME!!!
 

Stumpokapow

listen to the mad man
whalenapp81 said:
I'm glad that they made a profit, now give me a NEW MECHWARRIOR GAME!!!

They relicenced the Mechwarrior IP to Smith & Tinker, which is the remnants of FASA. There's a game being released next year. Did you not know this?
 
360 has surpassed N64 worldwide now hasn't it? Next up, Sega Genesis.

And seeing as how they're profiting at $299/$199, I really don't see them dropping the price before Natal drops. They'll lose some marketshare, but they can effectively 'relaunch' next year by including Natal with every new 360 at the same price.
 
Stumpokapow said:
They relicenced the Mechwarrior IP to Smith & Tinker, which is the remnants of FASA. There's a game being released next year. Did you not know this?

I know, I know, I miss Fasa as a studio though.
 
Elios83 said:
http://www.gamedaily.com/articles/news/xbox-division-doubles-profit-in-q1/

Zune dragged the business down, Xbox the saviour of the EDD division.
Xbox profits way up due to lower manufacturing costs, Halo 3 ODST (and no real price cut I might add).
2.1 m units shipped in the quarter slightly down from 2.2m of last year.
Xbox 360 LTD shipments at 33.5m

well i'll save this thread for future discussions, i know people will still claim MS is losing money in its XBOX division
 

JDeluis

Member
MechDX said:
Someone had a $30 sale on LIVE 12 month cards.:D

You've done it now. Won't be long before someone comes in bitching that they have never seen this offer or can't be bothered to look for it.

That's how I always pickup my Live subscription. I always wait for a sale.
 

Cant0na

Banned
wow 34 mill.

probably add 2/3 million to that number this holiday as well. No wonder they're extending the 360's life with Natal instead of getting on with 720 like they did with the original xbox.

360s doing really well, never wouldve guessed it back in 2005
 

Saiyar

Unconfirmed Member
Elios83 said:
http://www.gamedaily.com/articles/news/xbox-division-doubles-profit-in-q1/

Zune dragged the business down, Xbox the saviour of the EDD division.
Xbox profits way up due to lower manufacturing costs, Halo 3 ODST (and no real price cut I might add).
2.1 m units shipped in the quarter slightly down from 2.2m of last year.
Xbox 360 LTD shipments at 33.5m

Based of the attach rate (8.7) the ltd software sales stand at 291.45 million.
 

open_mouth_

insert_foot_
I said 360 would hit 55+ million in its lifetime when it launched but many laughed at the prospect. Who's laughing now? (Microsoft, apparently, all the way to the bank) :lol
 

adamsapple

Or is it just one of Phil's balls in my throat?
So this means they can really easily afford to drop another 50 on their console prices if needs be it right ?
 

Chittagong

Gold Member
Awesome news, means we just might get another Xbox. Seriously, what other console has ever been better in terms of beautifully integrated functionality? Please excuse me, I'll have to go fondle my Xbox now.
 

pswii60

Member
dolemite said:
The earnings statement is out, apparently:

Halo ODST is probably to blame for the healthy profit. Also, apparently 34 million Xbox 360's are shipped worldwide.
source
First party games can make money. And lots of it. Perhaps MS should consider making more.
 
Stumpokapow said:
Actually, it's past both as of this quarter. Best-selling second place console of all time.
This is the best categorization ever. It should be in their ads.

I'm the fastest silver medalist in Olympic sprinting history! ROCK ON MICROSOFT!
 
DRock said:
Looks like good news to me, congrats MS!

Any negative spin?


It's Microsoft? :lol Congrats Microsoft.

34zlz5w.jpg
 

PSGames

Junior Member
Sho_Nuff82 said:
360 has surpassed N64 worldwide now hasn't it? Next up, Sega Genesis.

And seeing as how they're profiting at $299/$199, I really don't see them dropping the price before Natal drops. They'll lose some marketshare, but they can effectively 'relaunch' next year by including Natal with every new 360 at the same price.

Yep. Seems the most likely scenario at this point. PS3 will have BluRay. 360 will have Natal. Same price points.
 
intheinbetween said:
well i'll save this thread for future discussions, i know people will still claim MS is losing money in its XBOX division

I think folks are saying they aren't sure if they are losing money on the box itself.
 

GavinGT

Banned
DRock said:
Looks like good news to me, congrats MS!

Any negative spin?

Entertainment division is always profitable in a Halo quarter. Nothing to see here.

MattyGrovesOrMe said:
This is the best categorization ever. It should be in their ads.

I'm the fastest silver medalist in Olympic sprinting history! ROCK ON MICROSOFT!

This analogy fails. The second place sprinter in a race isn't at all affected by the first place sprinter's time. In the console business, if one company experiences runaway success, it's usually to the detriment of its competitors.
 

TAJ

Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.
goomba said:
So what happens to these profits once they start selling Natal at a loss?
Natal is only going to be $20?
 

LCfiner

Member
looks like if you sell enough wireless adapters then eventually things will pay off.

but seriously, that’s a good sign for the division if they can sustain themselves and be profitable. The 360 is certainly my most used console and MS has, for the most part, done a good job in getting top notch exclusive games on there.
 
LCfiner said:
looks like if you sell enough wireless adapters then eventually things will pay off.

but seriously, that’s a good sign for the division if they can sustain themselves and be profitable. The 360 is certainly my most used console and MS has, for the most part, done a good job in getting top notch exclusive games on there.
And considering the disaster of the self-destructing hardware, that is a good come-back.
 

GavinGT

Banned
Psychotext said:
That's the spirit... except you'd be wrong if you were to take into account Halo CE.

That was an exception, for obvious reasons. Like, people didn't even know what Halo was.
 

bill0527

Member
AstroLad said:
Well deserved. With the way they handled the rrod situation and cleaned up their act w/r/t build quality I don't see how even sonyfans could hate them anymore. Competition is a GOOD THING.

3 words:

Overpriced fucking accessories.

And you're almost forced to buy them since they dont let 3rd parties make them.

I've talking specifically about the hard drive.

I'm an Xbox fan, but I'm going sour on them quickly. I refuse to pay the asking price of $100-$140 for a 120GB drive. So my Xbox now only gets about 1/2 the functionality of it that I would like to have. My measly 13GB launch drive is full. I can't buy any games on demand. I'm very limited on space for arcade titles. I can't install any games to have them run smoother.

Also: Don't suggest to me to buy one of those $60 ebay drives - as most of them are hacked, western digital, reverse engineered drives that are about to be banned from Live for not being an authorized memory device.
 
bill0527 said:
Also: Don't suggest to me to buy one of those $60 ebay drives - as most of them are hacked, western digital, reverse engineered drives that are about to be banned from Live for not being an authorized memory device.
I don't believe they're what they're referring to when they talk about banning un-authorized devices... though I haven't been keeping up with it.

I mean how would they tell? The firmwares are identical. That's the beauty of it.
 
bill0527 said:
Also: Don't suggest to me to buy one of those $60 ebay drives - as most of them are hacked, western digital, reverse engineered drives that are about to be banned from Live for not being an authorized memory device.

Then I suggest selling your launch Xbox for about $150, and picking up a new Elite for $250. Or you can pickup the 250GB MW2 bundle for $400. That way you get a brand new console, more storage space for less than the cost of a 120GB HDD on its own.

There's no point in buying a HDD on its own. It's just better/more cost effective to sell your old console and buy a brand new one with the bigger hard drive. You get more space, a new console with better build quality, AND it's probably cheaper in absolute dollars spent.
 

GavinGT

Banned
Psychotext said:
I don't believe they're what they're referring to when they talk about banning un-authorized devices... though I haven't been keeping up with it.

I mean how would they tell? The firmwares are identical. That's the beauty of it.

It's just for memory cards at this point. Also, pfft, Microsoft isn't exactly masterful at detecting custom firmware on 360, anyways.

And I don't see why people can't just delete some crap and re-download it, if they wish to, later. But then again, I also don't see the point in Games on Demand when they're more expensive and take up HDD space.
 

TheOddOne

Member
GavinGT said:
It's just for memory cards at this point. Also, pfft, Microsoft isn't exactly masterful at detecting custom firmware on 360, anyways.

And I don't see why people can't just delete some crap and re-download it, if they wish to, later. But then again, I also don't see the point in Games on Demand when they're more expensive and take up HDD space.
I think its because you have to re-download it, i'm to lazy to do that. If its on my harddrive it stays on my harddrive.

Good to see that the division is going strong, now lets see if they can top it.
 

Gadfly

While flying into a tree he exclaimed "Egad!"
ZAK said:
Is that a lot of money? For some reason that doesn't sound like that much money.
That's what I keep telling them and they still don't let me have it :(
 

GavinGT

Banned
TheOddOne said:
I think its because you have to re-download it, i'm to lazy to do that. If its on my harddrive it stays on my harddrive.

Good to see that the division is going strong, now lets see if they can top it.

Lazy in what sense? It takes a lot more effort to go out and work to get money than to just delete something and re-download it.
 
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