Microsoft Corp. today announced that revenues for the quarter ended March 31, 2015 grew to $21.7 billion. Gross margin, operating income, and diluted earnings per share (“EPS” for the quarter were $14.6 billion, $6.6 billion, and $0.61 per share, respectively.
Computing and Gaming Hardware
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Computing and Gaming Hardware
Computing and Gaming Hardware revenue decreased $72 million or 4%, primarily due to lower revenue from Xbox Platform, offset in part by higher Surface revenue. Computing and Gaming Hardware revenue included an unfavorable foreign currency impact of approximately 4%. Xbox Platform revenue decreased $306 million or 24%, driven by a 20% decline in console volume and lower prices of Xbox One consoles compared to the prior year. We sold 1.6 million Xbox consoles during the third quarter of fiscal year 2015 compared with 2.0 million consoles during the third quarter of fiscal year 2014. Surface revenue increased $219 million or 44%, primarily due to Surface Pro 3 units sold, offset in part by a decrease in revenue from other Surface devices sold. Surface Pro 3 was released in June 2014.
Computing and Gaming Hardware gross margin increased $156 million or 60%, due to a $228 million or 14% decrease in cost of revenue, offset in part by lower revenue. Gross margin benefited from the mix shift to Surface Pro 3. Computing and Gaming cost of revenue decreased, primarily due to a $265 million or 27% decline in Xbox Platform cost of revenue, driven by lower volumes and a lower cost per console sold.
Nine months ended March 31, 2015 compared with nine months ended March 31, 2014
Computing and Gaming Hardware revenue increased $499 million or 6%, primarily due to higher revenue from Surface, offset in part by lower revenue from Xbox Platform. Computing and Gaming Hardware revenue included an unfavorable foreign currency impact of approximately 2%. Surface revenue increased $939 million or 53%, primarily due to Surface Pro 3 units sold, offset in part by a decrease in revenue from other Surface devices sold. Xbox Platform revenue decreased $471 million or 8%, driven by lower prices of Xbox One consoles compared to the prior year, as well as a decrease in second- and third-party video games revenue. We sold 10.7 million Xbox consoles during the first nine months of fiscal year 2015 compared with 10.6 million consoles during the first nine months of fiscal year 2014.
Computing and Gaming Hardware gross margin increased $479 million or 55%, mainly due to higher revenue. Computing and Gaming cost of revenue was flat. Gross margin benefited from the mix shift to Surface Pro 3. Surface cost of revenue increased $156 million or 7%, mainly due to the higher cost per device sold for Surface Pro 3. Xbox Platform cost of revenue decreased $138 million or 3%, mainly due to lower cost per console sold.
Code:
(360 + XBO) Hardware Unit Sales (Unit:Million)
FY Jl-Sp Oc-Dc Ja-Mr Ap-Jn FY
2013/14 1.2 7.4 2.0 1.1 11.7
2014/15 2.4 6.6 1.6 - 10.6
Code:
Xbox One Hardware Unit Sales (Unit:Million)
FY Jl-Sp Oc-Dc Ja-Mr Ap-Jn FY LTD
2013/14 - 3.9 1.2 ? ? ?
Code:
Xbox 360 Hardware Unit Sales (Unit:Million)
FY Jl-Sp Oc-Dc Ja-Mr Ap-Jn FY LTD
2005/06 - 1.5 1.7 1.8 5.0 5.0
2006/07 1.0 4.4 0.5 0.7 6.6 11.6
2007/08 1.8 4.3 1.3 1.3 8.7 20.3
2008/09 2.2 6.0 1.7 1.2 11.2 31.5
2009/10 2.1 5.2 1.5 1.5 10.3 41.8
2010/11 2.8 6.3 2.7 1.7 13.7 55.3
2011/12 2.3 8.2 1.4 1.1 13.0 68.3
2012/13 1.7 5.9 1.3 1.0 9.9 78.2
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2013/14 1.2 3.5 0.8 ? ? ?
- Xbox 360 sales rise to 84 million (June 9, 2014)
Credit goes to Parmenides for the format