360 Revenue Drops 29 Percent

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360 Revenue Drops 29 Percent

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It's been a profitable year for Microsoft, but the 360 is flagging.

Those of you clinging to the PS3 in the great waste of time and energy that is the 7th generation console war may begin the celebrations; it's been a tough three months for the Xbox 360.

Microsoft's quarterly revenue for the 360 platform is down 29 percent from the same period last year, according to a recently released fiscal report. While Microsoft tallied some US$21.46 billion in revenue during the second quarter of its 2013 fiscal year (that's October 1st, 2012, to December 31st, 2012, for those of you who don't live in bizarro finance land) the company's Entertainment and Devices Division - which covers the 360 platform, Windows Phone and Skype amongst others - recorded an 11% decrease in revenue.

All is not lost, however. The company did report a substantial amount of deferred revenue; IE: money acquired for a product not yet delivered. Apparently "sales of video games with the right to receive specified software upgrades/enhancements," have made Microsoft some $380 million. If you were to add that revenue to the Entertainment and Devices division earnings, the adjusted revenue would bring the decrease down to a more palatable 2 percent.

The 29% decrease, despite being offset by the launch of the Windows 8 phone in October, equates into $1.1 billion dollars of lost revenue. Microsoft is pinning the decreased revenue on the slowing sales of the 360 console. The company shipped only 5.9 million units in the second quarter, down from 8.2 million in the same quarter of last year. Research and development costs also shot up, increasing by $98 million as the company hires more staff. No prizes for guessing where all that money and manpower is going.

Source: Microsoft via Polygon

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so sdo they all seem to forget everyone is broke these days and are not stupid enough to invest in a console when its just about to be replaced ?

Revenue probably bottomed out on account that M$ has finally figured out how to get the 360 so it will actually last some significant time past its warranty period with out throwing a rrod.

(that's October 1st, 2012, to December 31st, 2013, for those of you who don't live in bizarro finance land)

That's a fairly long financial quarter. Their predictive abilities are quite impressive though ;-)

But it IS still making a profit right?

(that's October 1st, 2012, to December 31st, 2013, for those of you who don't live in bizarro finance land)

Do you even proofread anymore?

Who would have thought that sales around the slowest time of year would be significantly less than sales around the most profitable time of year.
This isn't really news. Sales go down in January.

Or, it could be that everyone and their bateria have a 360. Ya know. I might be that.

Souplex:
Who would have thought that sales around the slowest time of year would be significantly less than sales around the most profitable time of year.
This isn't really news. Sales go down in January.

I guess you didnt bother actually reading the article. They are comparing October to December sales of 2012 to those of 2011. They are also not talking about January sales at all.

doggie015:

(that's October 1st, 2012, to December 31st, 2013, for those of you who don't live in bizarro finance land)

Do you even proofread anymore?

Did they ever?

'December 31st, 2013'

and

'The company shipped only 5.9 million units in the second quarter'

Yep, I am way too drunk to read this this properly as something bad. Call me a fanboy, or more correctly as a drunk... please.

Next thing ya know, this website will try to tell me that people don't like the Call of Duty series.

lol

Well, they can always put more ads on the dashboard.

You know...I'd be much more interested in which console is coming out on top if they had more significant exclusives. Although the PS3 has a fair few more than the 360, not that many are that fantastic (In fact, only Naughty Dog seems to be making the good ones).

No prizes for guessing where all that money and manpower is going.

I really hope it's going into Windows 9, because I hear 8 isn't doing too hot and it's definitely nothing I want to be involved with. If history is any indication, though, 9 will be out in 18 months and be *great*.

Well, a business analyst predicts Microsoft going down.
Microsoft goes down.
Why am i not surprised.

Because everyone who wants one already has one? And Kinect is useless and what . . . 6 years late? And so many great xbox games are made to pull people over to it's side? . . like haaalo fifteeeen. . . and gears of war revengeaudgementurrection.

Actually it seems 4 years late.

WII:
Release date Original model:
NA November 19, 2006
JP December 2, 2006
AUS December 7, 2006
EU December 8, 2006
Reconfigured model:
NA October 23, 2011
EU November 4, 2011

Release date
For Xbox 360:
NA November 4, 2010
EU November 10, 2010
CO November 14, 2010
AUS November 18, 2010
JP November 20, 2010
For Windows:
NA February 1, 2012
AUS February 1, 2012
JP February 1, 2012

Market saturation maybe? Everyone who wants one has one?

Wait, a minute...maybe that's why they made them cheaply so that they break...to make 360s renewable consumables.

porpoise hork:
Revenue probably bottomed out on account that M$ has finally figured out how to get the 360 so it will actually last some significant time past its warranty period with out throwing a rrod.

Yeah, they did that years and year ago. Mine's still working fine after almost five years of use.

C'mon, people, let the "Xbox always RRODs hurr durr" thing die, cant you?

Captcha: I'm blessed. Ha!

Grey Carter:
The company shipped only 5.9 million units in the second quarter, down from 8.2 million in the same quarter of last year.

That's kinda...stupidly impressive, if I'm honest. 5.9 million units in the space of three months. Of a product which has been available for over seven years, particularly in a period of economic slump. Who are all these millions of people thinking "well, I have less money now and it's a pretty old machine, but what the hell - time to get that Xbox I've been eyeing up!"

DustyDrB:
Well, they can always put more ads on the dashboard.

+1 to the sarcasm that MS will look at as a genuinely good idea.

Damn you, MS. I'm a more loyal customer of Steam now because of your bullcrap. Anyway, they're still making a massive profit, no?

I guess calling Microsoft M$ is bit ironic now.

DustyDrB:
Well, they can always put more ads on the dashboard.

I hear they intend to.

DustyDrB:
Well, they can always put more ads on the dashboard.

Or put another $10/10 on the price of gold subscriptions! And increase the ads for gold subscriptions!

Maybe even some kind of diamond or platinum subscription scheme could be introduced...

OT: Meh, these things do happen near the end of consoles lifespans, it's hardly surprising when everybody knows that the next consoles are coming within a year or so, hell one of them is already out.

Not to mention that the problems with the 360 are well documented and owners of many other systems likely have little incentive to bother adding one to their collection unless they have some real love for Halo.

Finances are weird. Was reading today from another site that Microsoft's revenue is up, but profits down to around that 2% figure, whilst Apple had "record quarterly revenues of $55 billion" however it's share price fell, lowering the company value by $50 billion.

I know share value is different from revenue/profits, but I still find finances weird... so much money and hypothetical money jumping around. o_o

SonicWaffle:

porpoise hork:
Revenue probably bottomed out on account that M$ has finally figured out how to get the 360 so it will actually last some significant time past its warranty period with out throwing a rrod.

Yeah, they did that years and year ago. Mine's still working fine after almost five years of use.

C'mon, people, let the "Xbox always RRODs hurr durr" thing die, cant you?

Captcha: I'm blessed. Ha!

Well, that's probably because they still do, but that's just overheating for you*, which generally gets harder to counter over time when fans get old ect. It depends on where the 360 is, or whether or not the user was unfortunate to get a 'friday 5pm' edition of the 360 where there's no thermal paste to speak of, so temperatures hit the roof. 360's are easily one the the least reliable consoles, but still, not all that many break overall compared to those sold.

*The main issue now is that the dvd drives stop working after a few years.

TheComfyChair:

SonicWaffle:

porpoise hork:
Revenue probably bottomed out on account that M$ has finally figured out how to get the 360 so it will actually last some significant time past its warranty period with out throwing a rrod.

Yeah, they did that years and year ago. Mine's still working fine after almost five years of use.

C'mon, people, let the "Xbox always RRODs hurr durr" thing die, cant you?

Captcha: I'm blessed. Ha!

Well, that's probably because they still do, but that's just overheating for you*, which generally gets harder to counter over time when fans get old ect. It depends on where the 360 is, or whether or not the user was unfortunate to get a 'friday 5pm' edition of the 360 where there's no thermal paste to speak of, so temperatures hit the roof. 360's are easily one the the least reliable consoles, but still, not all that many break overall compared to those sold.

I realise I'm relying on purely anecdotal evidence here, but from my friend groups everyone with a PS3 is on at least their second console due to some malfunction I don't pretend to understand (something about a yellow light?) and of those consoles at least one has wiped the console's memory due to some glitch. Conversely I only know one guy who got an RROD, and his never actually broke, he just kept trying random shit the internet told him to do and the console survived. That said, it must also be taken into consideration that several of my Xbox friends have gone through multiple consoles, but that's because they're a bunch of bums who occasionally pawn the machine for beer or drugs and end up having to buy a new one :-P

TheComfyChair:
*The main issue now is that the dvd drives stop working after a few years.

That's actually started happening to me, though I wasn't aware it was a general problem. Seems fairly easily countered - I just use my fingernail to hold the tray away from the console, and it slides out fine.

Half of the 360 owners had to buy a second console and are disgusted they had to to so to begin with. Now there is better alternatives and microsoft's name is mud to me and will boycott their next console. Why should I have to buy a console twice to make some greedy coorporate douchebag rich? the 360 is the only one I ever had to do that with. if they want to make a cheap product at the expense of their reputation then let them.

New consoles coming out... doesn't take a rocket scientist.
Why buy a machine that's about to become obsolete?

All hail the pc master race exterminate, exterminate.

AstaresPanda:
so sdo they all seem to forget everyone is broke these days and are not stupid enough to invest in a console when its just about to be replaced ?

Well that, and I notice they talk in terms of "what we made this year compared to last year" I notice they aren't talking about how much of a profit they made... you know ZOMG, I've only made 20 billion instead of 21 billion, the horror! :P

This is why I think corperations need a reality check.

They should be amazed they are still selling 360s given the next gen annoucement, and the sheer amount of time it's been on the market (and all of the flaws like the RROD).

How much of this can be put down to them banking on Kinect?

Because it seems to only be good for dancing games, the best part of Star Wars Kinect (or should I say the only non-unbearable part) was the part that totally ripped off Dance Central.

Kinect seems it would work just as well as a stand alone Dance Central device. It seems the sensor that can do so many things is only good for one thing.

Grey Carter:
Research and development costs also shot up, increasing by $98 million as the company hires more staff. No prizes for guessing where all that money and manpower is going.

"...But the next phase is, can we create an OS so undesirable that our customers will actually pay us to avoid having to use it?"

SonicWaffle:
I realise I'm relying on purely anecdotal evidence here, but from my friend groups everyone with a PS3 is on at least their second console due to some malfunction I don't pretend to understand (something about a yellow light?) and of those consoles at least one has wiped the console's memory due to some glitch. Conversely I only know one guy who got an RROD, and his never actually broke, he just kept trying random shit the internet told him to do and the console survived. That said, it must also be taken into consideration that several of my Xbox friends have gone through multiple consoles, but that's because they're a bunch of bums who occasionally pawn the machine for beer or drugs and end up having to buy a new one :-P

The frothing PS3 fanbois still keep harking on about the RRoD even though it was fixed years ago, they also conveniently forget about Sonys own problem with the YLoD. The YLoD was nowhere as bad as the RRoD with the early Xboxes but still far from acceptable. Its like trying to decide which is better, AIDs or Hepatitis C.

i know this probably doesn't mean a thing, but i love to see microsoft getting taken down a peg. i want to think this is a result of people catching on to microsofts bs business practices. xbox live is an insultingly bad service, and should be called dickslapped in the face online. xbox live is the snake oil of online gaming services.

P.S. no fandom here, the only console i own is an xbox

They could engineer more hardware failures so people have to buy duplicates.

On the serious side, it's been all about ads, services and Kinect for awhile now. Maybe that's it.

J Tyran:

SonicWaffle:
I realise I'm relying on purely anecdotal evidence here, but from my friend groups everyone with a PS3 is on at least their second console due to some malfunction I don't pretend to understand (something about a yellow light?) and of those consoles at least one has wiped the console's memory due to some glitch. Conversely I only know one guy who got an RROD, and his never actually broke, he just kept trying random shit the internet told him to do and the console survived. That said, it must also be taken into consideration that several of my Xbox friends have gone through multiple consoles, but that's because they're a bunch of bums who occasionally pawn the machine for beer or drugs and end up having to buy a new one :-P

The frothing PS3 fanbois still keep harking on about the RRoD even though it was fixed years ago, they also conveniently forget about Sonys own problem with the YLoD. The YLoD was nowhere as bad as the RRoD with the early Xboxes but still far from acceptable. Its like trying to decide which is better, AIDs or Hepatitis C.

You said yourself which one is better. I'll bold it for you.

Carrots_macduff:
i know this probably doesn't mean a thing, but i love to see microsoft getting taken down a peg. i want to think this is a result of people catching on to microsofts bs business practices. xbox live is an insultingly bad service, and should be called dickslapped in the face online. xbox live is the snake oil of online gaming services.

P.S. no fandom here, the only console i own is an xbox

Oh heck yes. They need to lose some footing, especially in the PC sector. For gaming, they're okay, but nothing special. But the amount of shit that they've given us PC gamers is quite frankly, unacceptable.

OT- Meh; never cared much for the Xbox as it charged more money as time went on. Also, PS3 exclusives rock more. I think I'm done here.

He also went on to say that Microsoft were still shite. No one won in the early days of the last console generation, it was more a question of who lost the least. I'd like to hear some news on new consoles soon as well. Not that I can afford it yet.

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