| Microsoft today reported 27 percent revenue growth for its first quarter ended September 30, which according to Chris Liddell, chief financial officer at Microsoft, is the "fastest revenue growth of any first quarter since 1999." All told, Microsoft generated $13.76 billion in revenue and net income of $4.29 billion.
More importantly from a game industry perspective, Microsoft's Entertainment and Devices Division (EDD), which houses the Xbox business, actually produced a profit of $165 million compared to a loss of $142 million one year ago. Revenue in the Xbox division was also way up (91 percent) to $1.93 billion.
EDD President Robbie Bach had previously said that he's planning on the Xbox business being profitable during the 2008 fiscal year. This first quarter, boosted by Halo 3, has certainly gotten the company off to a good start.
"EDD revenue increased primarily due to increased Xbox 360 console and game sales. Xbox and PC game revenue increased $895 million or 148% as a result of increased Xbox 360 console sales, video game sales led by Halo 3, and Xbox 360 accessory sales. We shipped 1.8 million Xbox 360 consoles in the current quarter as compared to 0.9 million consoles in the first quarter of fiscal year 2007. Halo 3 was launched in September 2007 and generated approximately $330 million of revenue during the quarter," the company stated in its 10-Q filing.
Microsoft expects its positive momentum in the Xbox business to continue throughout its fiscal year. "For the remainder of fiscal year 2008, we expect [EDD] revenue to increase due to the increased sales of Xbox 360 consoles and related games, accessories, and services, and sales of Zune products," the company said.
by James Brightman
Comments or questions? Send them to editor@gamedaily.com
|
