Microsoft’s Devices and Consumer segment had a great Christmas.
Xbox sold over 7.4 million units in the quarter ending December 31st, beating expectations by about 400,000 units. What does that mean in cash terms? Well, revenue spiked by 68%, or $1.9 billion, for the quarter, and of that figure the Xbox One accounts for $1.2 billion. Microsoft’s shareholders are very happy investors right about now, and share price has gone up about 3.5%.
“Our Devices and Consumer segment had a great holiday quarter,” says outgoing CEO Steve Ballmer. “The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth.”
Microsoft has yet to find a replacement for Ballmer. Ford man Alan Mulally is no longer in the running, while Nokia boss Stephen Elop, who said he’d sell the Xbox division, is still in with a chance.
The question for the Xbox One now is, after all those sales, can Microsoft really turn it into the entertainment platform it’s dreamed of for so long? “There’s no reason why you can’t have an extremely powerful game console that also does entertainment,” said Major Nelson back in January. “Why does there have to be an ‘and or?'” If Microsoft can pull that off, its shareholders will be very happy indeed.
Source: Seeking Alpha