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[Parmenides]

Microsoft Reports First Quarter Results ( July 1 – September 30, 2011)

-Microsoft Corp. today announced record first-quarter revenue of $17.37 billion for the quarter ended Sept. 30, 2011, a 7% increase from the same period of the prior year. Operating income, net income, and diluted earnings per share for the quarter were $7.20 billion, $5.74 billion, and $0.68 per share, which represented increases of 1%, 6%, and 10%, respectively, when compared with the prior year period.

Entertainment And Devices Division ---> Operating Income $352 million

EDD revenue increased primarily reflecting higher Xbox 360 platform revenue and Windows Phone revenue. Xbox 360 platform revenue grew $114 million or 7%, led by higher Xbox LIVE revenue, offset in part by decreased video game revenue and lower volumes of Xbox 360 consoles sold. Video game revenue decreased due to strong sales of Halo Reach in the prior year. We shipped 2.3 million Xbox 360 consoles during the first quarter of fiscal year 2012, compared with 2.8 million Xbox 360 consoles during the first quarter of fiscal year 2011.

EDD revenue for the three months ended September 30, 2011 included a favorable foreign currency impact of $51 million.

EDD operating income decreased reflecting higher operating expenses, offset in part by revenue growth. Cost of revenue grew $173 million or 19% primarily due to higher royalty costs resulting from an increase in Xbox LIVE digital marketplace third-party content sold and sales of Gears of War 3, offset in part by decreased product costs due to fewer sales of Xbox 360 consoles. Research and development expenses increased $24 million or 8%, primarily reflecting higher headcount-related expenses.

LINK

Xbox 360 Worldwide 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       -        -        -       2.3      57.6

LINK

 

[Adam Blade]

Not bad, could be better.

 

[Carl]

Not bad. 500,000 less than the same period last year but still second best Q1 for them. Seems good to me

 

[Agent Icebeezy]

Wow

 

[Seda]

Here's the PR for the first quarter.

http://www.microsoft.com/presspass/...0fy12Q1earningsPR.mspx?rss_fdn=Press Releases

 

[kylej]

Well deserved.

 

[cw_sasuke]

Gratz, though i always wonder how many of those ROD'ed and had to be replaced

 

[LosDaddie]

Well deserved success.

Congrats, MS!

 

[Speedymanic]

Not bad, could be better.

Not bad? The console is hardly selling in Japan and it's a mixed over the EU (barring the UK), I'd say that's a damn fine achievement, all things considered.

Pats on the back all round...

**Doffs hat in Microsoft's general direction**

 

[Majmun]

Gratz, though i always wonder how many of those ROD'ed and had to be replaced

 

[Syphon Filter]

I would think it would be higher.

 

[Infamous Chris]

Holy shit. Well deserved, grats MS!

 

[kneePat]

Not bad. 500,000 less than the same period last year but still second best Q1 for them. Seems good to me

If you read the press release, it is their best Q1 ever financially.

 

[Elios83]

Seems like Sony could make up a lot of ground this quarter, we'll see on Nov. 2

 

[CrunchinJelly]

 

[jim-jam bongs]

Gratz, though i always wonder how many of those ROD'ed and had to be replaced

What is this RROD of which you speak? I've never heard mention of it in a thread about Xbox sales before.

 

[specialguy]

No price cut was bound to hold the numbers down .

 

[Puppet Shadow]

Gratz, though i always wonder how many of those ROD'ed and had to be replaced

Took 7 posts for this? Dude, have the Uncharted threads in another Window so stuff like this can catch your eye faster.

 

[FrankT]

$352 million profit would mean they have finally turned a profit this generation. Couple of years left this generation should make for a decent start next gen.

 

[kneePat]

Gratz, though i always wonder how many of those ROD'ed and had to be replaced

Well if you think that number is high it should tell you something about customer loyalty, and maybe MS just released a product worth replacing. Nah, what am I saying people are stupid and enjoy wasting their money on something that breaks 4 out of 5 times.

 

[The Abominable Snowman]

What were the Sony numbers historically. A 3M gap is a really fragile gap.

 

[Evolved1]

Well I've bought three... and yet don't have one that actually works.

 

[Kyon]

Gratz, though i always wonder how many of those ROD'ed and had to be replaced

lmao. i always wondered too. guess we'll never know.

Congrats MS, i need to get a slim soon

 

[Derrick01]

Not bad? The console is hardly selling in Japan and it's a mixed over the EU (barring the UK), I'd say that's a damn fine achievement, all things considered.

Pats on the back all round...

**Doffs hat in Microsoft's general direction**

*tag quote*

Just kidding. When you say it like that it is a nice achievement especially given how well Sony does in europe and japan. I just wish there were more games on the horizon for them, or at least strong hints of some.

 

[Gravijah]

What is this RROD of which you speak? I've never heard mention of it in a thread about Xbox sales before.

he said rod dude it's different

 

[ThisWreckage]

Seems like Sony could make up a lot of ground this quarter, we'll see on Nov. 2

They certainly can because of the price drop. The PS3 pulled some pretty decent numbers in last month's NPD.

 

[Mollymauk]

Pretty amazing evolution for the console during its lifecycle. The 360 I have today bears little resemblance to the one I bought in 2006.

Remember this guy?

 

[KingDizzi]

Gratz, though i always wonder how many of those ROD'ed and had to be replaced

 

[Puppet Shadow]

What were the Sony numbers historically. A 3M gap is a really fragile gap.

This is a thread about profit. Why are you bringing Sony up?

Spoiler

Ok, I'll stop now, but seriously some of you...

 

[cw_sasuke]

Took 7 posts for this? Dude, have the Uncharted threads in another Window so stuff like this can catch your eye faster.

Why so aggressive ? I just wondered how many 360 got ROD since we never got a figure or estimation, would be interesting to know. At least for me. Readin message boards back than you would have thought that every second or third console had to die at some point, but we never really knew how many victims there were in total.

 

[jim-jam bongs]

he said rod dude it's different

I rodded my 360 last night, it was nice

Why so aggressive ? I just wondered how many 360 got ROD since we never got a figure or estimation, would be interesting to know. At least for me. Readin message boards back than you would have thought that every second or third console had to die at some point, but we never really knew how many victims there were in total.

Because it's utterly irrelevant to the sales figures, it's impossible to even estimate with any accuracy and it's been the stock Sony tragic response to 360 sales for at least 4 years.

 

[Combichristoffersen]

he said rod dude it's different

Every 360 will eventually ROD and turn into Rod Stewart in speedos

 

[Elios83]

They certainly can because of the price drop. The PS3 pulled some pretty decent numbers in last month's NPD.

PS3 also had really strong japanese numbers in September, but it's not just because of that it's because for the last two years Sony shipped 3.2m and 3.5m units during Q2....so there's the possibility that a gap of more than 1m units has been erased in the last three months.
But again...........this is just speculation based on past numbers and trends. I'm going to wait Nov. 2 before making a judgement.

 

[jim-jam bongs]

IF YOU WANT MY BODY
AND YOU THINK I'M SEHHHHXY

 

[Mihael Mello Keehl]

Pretty amazing evolution for the console during its lifecycle. The 360 I have today bears little resemblance to the one I bought in 2006.

Remember this guy?

I dont even think I would be on xbl if it still looked like that.

 

[flyinpiranha]

Gratz, though i always wonder how many of those ROD'ed and had to be replaced

4 minutes to post this?! It should have been the first post. GAF you disappoint.

 

[Derrick01]

Pretty amazing evolution for the console during its lifecycle. The 360 I have today bears little resemblance to the one I bought in 2006.

Remember this guy?

I miss those so much. It was so sexy when the generation started, really felt new agey.

 

[specialguy]

Amazing that after all this time and media Apple hype, Microsoft isn't much less profitable than Apple( 6.62B vs 5.74B) And their margins are actually significantly higher since revenue is 28.27 for apple vs 17.37 for ms.

 

[The Abominable Snowman]

This is a thread about profit. Why are you bringing Sony up?

Spoiler

Ok, I'll stop now, but seriously some of you...

Because it states how many units have been sold... ?

 

[rpmurphy]

What were the Sony numbers historically. A 3M gap is a really fragile gap.

From last quarter:

PS3 Worldwide Unit Sales (Unit:Million)

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

FY 2006/07         -        -       1.7      1.8      3.5      3.5

FY 2007/08        0.7      1.3      4.9      2.2      9.1      12.6 

FY 2008/09        1.6      2.4      4.5      1.6      10.1     22.7 

FY 2009/10        1.1      3.2      6.5      2.2      13.0     35.7

FY 2010/11        2.4      3.5      6.3      2.1      14.3     50.0

FY 2011/12        1.8       -        -        -       1.8      51.8

http://www.neogaf.com/forum/showthread.php?t=438805

 

[watership]

I would think it would be higher.

It was 55 WW in June.

 

[Vustadumas]

Well if you think that number is high it should tell you something about customer loyalty, and maybe MS just released a product worth replacing. Nah, what am I saying people are stupid and enjoy wasting their money on something that breaks 4 out of 5 times.

Yep, and I've bought three. One of which, RRoD 7 times, and was finally replaced, with an updated model. I would do it all over again, because in my 30+ years of gaming, the 360 ranks right up there, near the top.

Though I can't help but think, what if, this console had been rock solid, on the hardware side. Possibly could have been, much, much more thank 57mil.

 

[Combichristoffersen]

IF YOU WANT MY BODY
AND YOU THINK I'M SEHHHHXY

Tonight's the night I'll be sailing inbetween your hot legs, Maggie May

 

[GodofWine]

Gratz, though i always wonder how many of those ROD'ed and had to be replaced

I've always wondered this...but I don't really care about 'sales-age' and figured people would jump all over the person who asked this question..anywho...good numbers for MS.

 

[Syphon Filter]

It was 55 WW in June.

yea i know...

 

[Infamous Chris]

Imagine if Microsoft dropped the price. They haven't price dropped in 3 years and they're still breezing through.

Hmm, what would happen?

 

[Curufinwe]

Their operating income would go down? That at least would explain why they haven't cut the price.

Amazing that after all this time and media Apple hype, Microsoft isn't much less profitable than Apple( 6.62B vs 5.74B) And their margins are actually significantly higher since revenue is 28.27 for apple vs 17.37 for ms.

True, but it's amazing how profitable Apple is when they sell so much hardware. Compare that to MS where their Xbox division has actually cost them billions of dollars over a decade and has had to be subsidized by Windows, Server & Tools, and Microsoft Business Division

 

[specialguy]

Sony:

Looks like Sony will ship 3.5m or more. Not sure how Microsoft can NOT price drop and expect to win 2011. Even if the holiday quarter is typically strong for MS.

Anybody feel like working up USA+Japan Jul-Sep 2010 vs Jul-Sep 2011 PS3 end user sales? From that we could get a closer idea what they might ship this quarter. I'll probably do it in a minute..

 

[allan-bh]

9 months 2010- 5.8m

9 months 2011- 6.7m

Nice increase for a old console.

 

[Stumpokapow]

Amazing that after all this time and media Apple hype, Microsoft isn't much less profitable than Apple( 6.62B vs 5.74B) And their margins are actually significantly higher since revenue is 28.27 for apple vs 17.37 for ms.

Hah, it's gotten to the point where it's amazing that Microsoft is almost as profitable and not drawing anywhere near as much revenue as Apple. Talk about a role reversal. Ten years ago, it'd be amazing if you could put Apple in the same sentence as Microsoft and not crack up laughing.