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Microsoft FY2015 Q3: 1.6M 360+XBO Shipped

Z

ZhugeEX

Banned
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

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.
Click to expand...

XBX_zps6ia6xyo6.jpg


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

---------------------------------------------------------------------

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
 
O

Obliterator

Member
We have to assume the vast majority of that is Xbone since the 360 is basically dead now. How are the results do you think?

Edit: Just saw the other slide, down 24% on revenue? That looks pretty damn horrible.
 
Z

ZhugeEX

Banned
Just for comparison, this quarter last year we saw XB1 and 360 sell in 2 million units coming out of the XB1 launch.

This year that number drops to 1.6m combined.

Not great.
 
A

Arc

Member
Uh oh. I mean didn't we all see this coming? They dumped everything they had into having a good FY Q2.
 
T

TeddyBoy

Member
So overall they're down 400,000 units YoY, that's quite concerning so early into the Xbox One's life since it's unable to pick up where the 360 dropped off.

The console is already available for £220 very easily and I can't see it not decreasing in price until at least Halo 5.
 
S

Scientificreason

Banned
I don't think in the long run it is a good strategy to rely on short term price cuts like MS has during the holidays....it never sustains momentum and devalues your brand. Price cuts should be maximized.
 
I

Into

Member
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.
Click to expand...

Is such a decline normal after its first real year? Usually console sales ramp up and hit peak in their 3-4th year
 
T

Theorry

Member
I think they take the hit in decrease for now. Probably earning it back later with other things? Such as Live and software?
 
O

Obliterator

Member
TeddyBoy said:
So overall it's down 400,000 units YoY, that's quite concerning so early into the Xbox One's life.

The console is already available for £220 very easily and I can't see it not decreasing in price until at least Halo 5.
Click to expand...

Yeah that's not a good look, these consoles should be growing and gaining momentum. Down 400k units in a quarter is not good at all. I realize they had Titanfall last year but still.....

400k units.
 
R

RealityPales

Member
That seems... poor.

I would love to know where the Xbox One and PS4 sold-through sales compare at this point. It has to be 2:1 worldwide.
 
ethomaz

ethomaz

Banned
360 did 800k last year.
Xbone did 1.2m last year.

Anybody expect a 50% drop in 360? 400k for it... well puts Xbone at 1.2m again.
 
Welfare

Welfare

Member
Just saying that last year, 800k of the 2 million was from the 360. One could very well be flat (still not good), while the 360 drop heavily.
 
T

theviolenthero

Member
TeddyBoy said:
So overall it's down 400,000 units YoY, that's quite concerning so early into the Xbox One's life.

The console is already available for £220 very easily and I can't see it not decreasing in price until at least Halo 5.
Click to expand...


The 1.6 million is for 360 & XB1 combined.
Also, as it clearly states in the OP, the price drop ($500 to $350) is the main reason why revenue's are down.
 
G

gigantor21

Member
Theorry said:
I think they take the hit in decrease for now. Probably earning it back later with other things? Such as Live and software?
Click to expand...

Given that their revenue is down by 24% as well, that's clearly not making up the difference. That bothers me as much as the sales numbers--which shouldn't be going down year-to-year when the Xone is $150 cheaper and has far more games to play--if not more. :/
 
L

Lordzap

Neo Member
Obliterator said:
We have to assume the vast majority of that is Xbone since the 360 is basically dead now. How are the results do you think?

Edit: Just saw the other slide, down 24% on revenue? That looks pretty damn horrible.
Click to expand...

I'm no expert but if the 360 was really dead then surely they would have separate numbers?
 
Z

ZhugeEX

Banned
HariKari said:
1.6m for the family in a quarter? That seems pretty brutal. Anyone have the Sony numbers to compare?
Click to expand...

April 30th.

But last year we saw 2 million XB1/360 for this quarter. This year 1.6m

Last year for sony we saw 3.7m PS3/PS4 and this year I'm expecting it to be slightly lower.
 
M

mcrommert

Banned
Obliterator said:
Yeah that's not a good look, these consoles should be growing and gaining momentum. Down 400k units in a quarter is not good at all. I realize they had Titanfall last year but still.....

400k units.
Click to expand...

I know everyone is excited to dance on xbox perceived grave

Remember this includes 360 sales which has taken a steep, steep dive
 
J

JaggedSac

Member
Surface is really gaining some momentum.

XBox revenue drop isn't completely surprising when you shed $150 off from the year prior and don't have new release software.

Their cloud shit is doing gangbusters.
 
Q

Quadraphonic

Member
Bold One said:
wait...this is bad?
Click to expand...

Last year it was a 2million split.

800k 360
1200k One.

No matter how you slice it, it fell.

The big problem is that it means people aren't upgrading from 360 to One.

It means they're upgrading elsewhere. There should ROUGHLY be a 1:1 tradeoff as 360 sales fall and transition towards One sales.
 
N

Natureboy99

Banned
Ricky_R said:
Devaluing the console really bit them in the **** it seems.
Click to expand...

Have to agree, though it saved 3DS. The problem with XBO is that they only matched PS4. All the 1 console owners are going PS4 due to exclusive library being twice as big. Theres no reason to get a XBO unless you just love Halo.
 
I

Inuhanyou

Believes Dragon Quest is a franchise managed by Sony
MS should have known better than to play the reaction game. Loosing a bit to the PS4 like they were last year with a much bigger return via console HW was a much better strategy. At the very least, they should not have done the 50 dollar price drop.
 
I

Into

Member
Guevara said:
I swear the Xbox One is going to go down as the most front-loaded console ever.
Click to expand...

Indeed and this is with a significant price cut, and in my opinion, great strides to turn the negatives into positives. Might be too late for that.
 
Jinfash

Jinfash

needs 2 extra inches
They attribute forex as one of the reasons for lower revenue, but they still outline they sold less than sane quarter last year.

Another mentioned factor is obviously the price cuts, but it's nice to see it offsetted by a decrease in revenue cost.
 
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