Support NeoGAF

Parmenides · Oct 28, 2010

** Microsoft's fiscal year starts on July 1st

- Microsoft Corp. today announced record first-quarter revenue of $16.20 billion for the quarter ended Sept. 30, 2010, a 25% increase from the same period of the prior year.

- Operating income, net income and diluted earnings per share for the quarter were $7.12 billion, $5.41 billion and $0.62 per share, which represented increases of 59%, 51% and 55%, respectively, when compared with the prior year period.

- Xbox 360 consoles grew 38%, outselling every competing console in the U.S. for each of the past four months.

- Microsoft shipped 2.8 million Xbox 360 consoles during the first quarter of fiscal year 2011, compared with 2.1 million Xbox 360 consoles during the first quarter of fiscal year 2010

Link: Microsoft Q1

Microsoft said:
EDD revenue increased primarily reflecting higher Xbox 360 platform revenue. Xbox 360 platform revenue grew $409 million or 33%, primarily reflecting increased volumes of Xbox 360 consoles sold and higher Xbox 360 video game revenue led by Halo Reach. We shipped 2.8 million Xbox 360 consoles during the first quarter of fiscal year 2011, compared with 2.1 million Xbox 360 consoles during the first quarter of fiscal year 2010.Halo Reach launched in September 2010 generating approximately $350 million of revenue during the quarter.

EDD operating income increased primarily reflecting revenue growth, offset in part by higher operating expenses. Cost of revenue increased $152 million or 19% primarily due to higher volumes of Xbox 360 consoles sold. Research and development expenses increased $65 million or 30%, primarily reflecting higher headcount-related expenses. Sales and marketing expenses increased $39 million or 27% due mainly to increased Xbox 360 platform marketing activities.

Xbox 360 Worldwide Hardware Unit Sales (Unit:Million)

Code:

Hardware Sales   Jl-Sp    Oc-Dc    Ja-Mr    Ap-Jn     FY       LTD

FY 2005/06        -        1.5      1.7      1.8      5.0      5.0

FY 2006/07        1.0      4.4      0.5      0.7      6.6      11.6    

FY 2007/08        1.8      4.3      1.3      1.3      8.7      20.3    

FY 2008/09        2.2      6.0      1.7      1.2      11.1     31.4     

FY 2009/10        2.1      5.2      1.5      1.5      10.3     41.7

FY 2010/11        2.8       -        -        -       2.8      44.5

Majine said:
So, both Microsoft and Nintendo have reported sales today

- Earlier today,Nintendo announced its financial results

- Nintendo's fiscal year starts on April 1st

- For the current fiscal year ending March 31, 2011, Nintendo expects to sell 17.5 million Wiis

Link: Nintendo announces Q2 Results

Wii Worldwide Hardware Unit Sales (Unit:Million)

Code:

Hardware Sales   Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr     FY       LTD

FY 2006/07        -        -       3.08     2.76      5.84     5.84

FY 2007/08       3.43     3.9      6.98     4.31      18.62    24.46   

FY 2008/09       5.17     4.92     10.42    5.43      25.94    50.4

FY 2009/10       2.23     3.53     11.29    3.48      20.53    70.93

FY 2010/11       3.04     1.93      -        -        4.97     75.90

DMczaf · Oct 28, 2010

Pretty decent for a dying consumer brand.

Road · Oct 28, 2010

2010 (2009)

Entertainment and Devices Division $382 ($260)
(Operating income)

Millions of dollars.

38% for the 360 would be ~2.9 million units?

Synless · Oct 28, 2010

DMczaf said:
Pretty decent for a dying consumer brand.

I came here to say this.

TheOddOne · Oct 28, 2010

Damn you Mattrick, damn you.

MirageDwarf · Oct 28, 2010

DMczaf said:
Pretty decent for a dying consumer brand.

It is all about perception.

Jinaar · Oct 28, 2010

missionaccomplished.gif

Cygnus X-1 · Oct 28, 2010

The game division went very well...right?

Dai101 · Oct 28, 2010

You heard that CNN?

BuggyDClown · Oct 28, 2010

DMczaf said:
Pretty decent for a dying consumer brand.

Haha so true.

I'm really not a fan of windows, though I cant say Ive ever touched 7.

But I do love me some Xbox, and if I couldn't have an iPhone I think Id be looking at windows phone 7. Looks slick as hell.

ShapeGSX · Oct 28, 2010

Road said:
38% for the 360 would be ~2.9 million units?

They didn't say what that 38% was compared to, unfortunately.

Road · Oct 28, 2010

Cygnus X-1 said:
The game division went very well...right?

There's no game division.

Entertainment and Devices Division

The Entertainment and Devices Division (EDD) is responsible for developing, producing, and marketing: the Xbox 360 platform, including the Xbox 360 gaming and entertainment console and accessories, third-party games, games published under the Microsoft brand, and Xbox LIVE services, as well as research, sales, and support of those products and services; PC software games; online games and services; Mediaroom (our Internet protocol television software); Windows Phone and Windows Embedded device platforms; the Zune digital music and entertainment platform; application software for Apples Macintosh computers, Microsoft PC hardware products and other devices. EDD is also responsible for all retail sales and marketing for retail packaged versions of the Microsoft Office system and the Windows operating systems.

Products and Services: Xbox 360 console and games; Xbox LIVE; Windows Phone; Windows Embedded device operating system; Zune; Mediaroom; and numerous consumer software and hardware products (such as Mac Office, mice, and keyboards); and Windows Automotive.

jcm · Oct 28, 2010

That's a hell of a quarter, but the lack of shipped units is bullshit. And most likely no one on the call will ask, because the MSFT analysts only care about the golden geese.

GashPrex · Oct 28, 2010

closing up shop as we speak

GarthVaderUK · Oct 28, 2010

Revenue from here:
http://www.microsoft.com/investor/Downloads/Global/Related Information/Q1-FY11Slides.pptx

Psychotext · Oct 28, 2010

That's a bit crazy given that quarter would likely include costs associated with getting ready for both the Windows Phone 7 / Kinect launches.

Majine · Oct 28, 2010

So, both Microsoft and Nintendo have reported sales today. Should we expect Sony?

Lagspike_exe said:
Sony is tomorrow.

Aight.

Lagspike_exe · Oct 28, 2010

Majine said:
So, both Microsoft and Nintendo have reported sales today. Should we expect Sony?

Sony is tomorrow.

FrankT · Oct 28, 2010

Heck of a quarter. Best yet for the period in the division as far as shipments. Well on the way to 50 million by year end.

No Reach quarterly shipment number?

Operating income, net income and diluted earnings per share for the quarter were $7.12 billion, $5.41 billion and $0.62 per share

Crazy amount of net income they produce.

Road said:
2010 (2009)

Entertainment and Devices Division $382 ($260)
(Operating income)

Millions of dollars.

Great quarter for the division then to be sure.

spwolf · Oct 28, 2010

Go Windows Go!

dolemite · Oct 28, 2010

Lagspike_exe said:
Sony is tomorrow.

Tomorrow Japan time, or about 4am Eastern

Thetallywacker · Oct 28, 2010

Doesn't this show that they have been down y/y in other global markets?

godhandiscen · Oct 28, 2010

Ohh CNN...

Does this quarter includes the expenses for the Kinect launch or are the marketing payments spread over different quarters?

GhaleonEB · Oct 28, 2010

godhandiscen said:
Ohh CNN...

Does this quarter includes the expenses for the Kinect launch or are the marketing payments spread over different quarters?

R&D and marketing are expensed in the period in which they occur.

allan-bh · Oct 28, 2010

Well, Microsoft is now aligned with NPD Group

Dreams-Visions · Oct 28, 2010

good shit, Microsoft.

EagleEyes · Oct 28, 2010

But I thought the shareholders were putting pressure on them to get out of the videogame business.

flyinpiranha · Oct 28, 2010

Microsoft has abandoned hardcore losses.

dolemite · Oct 28, 2010

Thetallywacker said:
Doesn't this show that they have been down y/y in other global markets?

Per NPD, the US sales are up about 514k and the global market is up by about 800k. The rest of the world is up.

TheOddOne · Oct 28, 2010

flyinpiranha said:
Microsoft has abandoned hardcore losses.

Man, now there just making casual profit. I have only one hardcore loss to wait for in 2011 :|

jmdajr · Oct 28, 2010

GOOD WORK

and... keep it up.. we're all counting on you

szaromir · Oct 28, 2010

And people laughed at me when I said 360 might be doing $1B (or more) a year.

360 should exceed 50M units shipped, I think it's the only second place console to achieve that (PSP did that number too and PS3 will as well no doubt). It's interesting that while installed hardware bases are the biggest they historically were, it often feels like the market has tough times ahead.

Psychotext · Oct 28, 2010

szaromir said:
And people laughed at me when I said 360 might be doing $1B (or more) a year.

Did you say it back when they were losing that much a year?

Megadragon15 · Oct 28, 2010

dolemite said:
Per NPD, the US sales are up about 514k and the global market is up by about 800k. The rest of the world is up.

Thanks to Media Create threads, everyone knows one area oif the world that they are down. :lol

Sho_Nuff82 · Oct 28, 2010

So if im reading that right, MS shipped nearly a million more 360s than Nintendo did Wiis over the last 3 months?

bigtroyjon · Oct 28, 2010

Is this the first time 360 has outshipped the wii in a quarter since the wii launch?

FrankT · Oct 28, 2010

Sho_Nuff82 said:
So if im reading that right, MS shipped nearly a million more 360s than Nintendo did Wiis over the last 3 months?

Indeed, the tide has turned. Haha, probably not but this holiday season is going to be great and it's real shame we will not get full numbers from NPD. Hopefully they will come out one way or another(I have to wonder if Pachter will pull that move again or not).

Elios83 · Oct 28, 2010

Sho_Nuff82 said:
So if im reading that right, MS shipped nearly a million more 360s than Nintendo did Wiis over the last 3 months?

That is more due to Nintendo's weak performance (who could have thought such a nosedive in sales?) than Microsoft's strength during the quarter.
I was actually expecting MS to post a 3.2m quarter considering their Slim launch and momentum in the US market, with Sony at 2.8-3m. And I didn't think that Wii would sink under 2m but things clearly didn't go according to my expectations. Tomorrow we'll get the full picture.

jcm · Oct 28, 2010

Thetallywacker said:
Doesn't this show that they have been down y/y in other global markets?

You can't compare shipments with retail sales like that. Machines aren't always shipped in the same quarter they are sold, and retail inventory levels aren't static.

Road · Oct 28, 2010

I guess you should take out my quote of the OP since we already have Microsoft's official statement. =P

And the segments' results are here: http://www.microsoft.com/investor//...alStatements/FY11/Q1/Financial Statements.xls

Dai101 · Oct 28, 2010

jmdajr said:
.... we're all counting on you

EagleEyes · Oct 28, 2010

Elios83 said:
That is more due to Nintendo's weak performance (who could have thought such a nosedive in sales?) than Microsoft's strength during the quarter.
I was actually expecting MS to post a 3.2m quarter considering their Slim launch and momentum in the US market, with Sony at 2.8-3m. And I didn't think that Wii would sink under 2m but things clearly didn't go according to my expectations. Tomorrow we'll get the full picture.

:lol . Is it that hard for you to give Microsoft any credit whatsoever? We are talking about a company that sold only 24 million consoles last gen. What they have done this gen along with Nintendo has been amazing to say the least.

Karma · Oct 28, 2010

44.5 Million 360s shipped. They will easily ship 5.5 Million plus in the holiday quarter to reach the 50 million mark. Great success for the Xbox brand.

They are on track to achieve $20 Billion Net income for this coming year. That would be crazy numbers. All this before Windows Phone 7 and Kinect.

flyinpiranha · Oct 28, 2010

TheOddOne said:
Man, now there just making casual profit. I have only one hardcore loss to wait for in 2011 :|

They shot themselves in the foot! :lol

FrankT · Oct 28, 2010

I think in terms of the quarter for the division it is clearly the best they have had outside a holiday quarter. They have some nice momentum going into the holidays at this point. Whether or not Nintendo stays in the slump remains to be seen. Anything can happen with the Wii and Kinect this holiday.

Edit: I should also say it was a smart move not cutting the price yet. I was firmly in the price cut camp, but they have totally changed things since the slim.

Edit 2: With Reach at $350 million in sales and $216 million of that NPD just using the same rate here that means Reach shipped around 5.35 million for the quarter. This is likely off some, but a decent basis of measure.

theluma · Oct 28, 2010

Karma said:
44.5 Million 360s shipped. They will easily ship 5.5 Million plus in the holiday quarter to reach the 50 million mark. Great success for the Xbox brand.

They are on track to achieve $20 Billion Net income for this coming year. That would be crazy numbers. All this before Windows Phone 7 and Kinect.

Yeah...

offshore · Oct 28, 2010

Jtyettis said:
Anything can happen with the Wii and Kinect this holiday.

Aww come on, don't leave out Move...

Karma · Oct 28, 2010

theluma said:
Yeah...

Both of which will generate more profit. Dont you agree?

Kazuma Kiryu · Oct 28, 2010

psychotext needs to update the usual info

flyinpiranha · Oct 28, 2010

theluma said:
Yeah!!!

Fixed!

Support NeoGAF

Microsoft Reports Record First-Quarter Results (No per-division results reported)

Banned

Member

Member

Member

Member

Member

Member

Member

Banned

Member

Member

Member

Member

NeoGaf-Gold Member

Banned

Member

Banned

Member

Member

Member

Member

Banned

There are millions of whiny 5-year olds on Earth, and I AM THEIR KING.

Member

Member

Member

Member

Member

Member

Member

Member

Banned

Member

Member

Member

Member

Member

Member

Member

Member

Banned

Member

Banned

Member

Member

Member

Member

Banned

Member

Member

Similar threads

NeoGaf-Gold Member