Microsoft have released their financial result for the first quarter of this year, ending March 31. What they reveals is that – as expected – Microsoft makes a whole bunch of money.
Despite a 12 percent decrease in year-on-year sales of the 360, profits for the quarter were up. Lots up! Then Entertainment division – which includes Xbox 360, Zune and *chuckle* Games for Windows pulled in a fair 1.67 Billion dollars in turnover – and 165M in pure profit.
Although down 12 percent, sales of the Xbox 360 console accounted for $199 Million, largely thanks to decreased cost in manufacturing. This brings the latest lifetime sales figures for the console to over 40 million units. Based on recent surveys, that MUST SURELY MEAN only 23.2 million people have working 360’s. There are very good reasons I’m not an actuary.
Sales of software PC and Xbox 360 decreased 5 percent to $240M; something probably attributed to piracy, lower console sales, that fact that half of the userbase plays Modern Warfare 2 with the rest of the userbase playing Halo3, and Sony’s incredible line up of exclusives. There are very good reasons I’m not an analyst.
Still, it’s been a good quarter for the division which has seen turnover rise by a staggering 242 percent from the previous year.
One of the primary contributors to this is paid for online service Xbox Live, which pulled in a fair amount of cash thanks to the staggering success of the overpriced stimulus pack for Modern Warfare 2. Those of you hoping Xbox Live would at some point become free to match the PSN, best get your heads out of the clouds. It costs money for a reason, and one of those reasons is that it keeps the champagne flowing at Microsoft HQ.
Source : AttackoftheFanboy
Last Updated: April 23, 2010
mitas
April 24, 2010 at 12:22
to quote ” This brings the latest lifetime sales figures for the console to over 40 million units. Based on recent surveys, that MUST SURELY MEAN only 23.2 million people have working 360’s. ” is indeed a great point very glad you pointed it out
RSA-Ace
April 24, 2010 at 13:01
Just some stats
X360 (40 million)
Worst Case 42% : 23.2 million
Best Case 8% : 36.8 million
PS3 (~34 million)
Worst Case 10% : 30.6
Best Case 4% : 32.6
So if 25% of the x360’s are broken the PS3 actually has more (even at it’s worst case) consoles out there. Which makes that whole statement about more PS3’s being ‘connected’ to the net understandable. Oh and the xbox piracy rate will lower that connected rate.
[Of course i guess this assumes some repairs are counted as new sales]
Gavin Mannion
April 25, 2010 at 00:58
Yeah I think it’s the bottom assumption that breaks it all up. There are more PS3’s connected out there as the PSN is free and the PS3 comes with wireless.
And like you said most repairs are not counted as resales as it’s only locally that you used to take it back to the stores. In most countries you send it to Xbox and they repair or replace and send it back.
lans
April 25, 2010 at 18:45
lies gavin, gamestop, and Walmart counts refurbs as sales in the usa my cousin used to work there.
Gavin Mannion
April 25, 2010 at 23:34
Not to refute your cousins infinite knowledge of both Walmart and Gamestop but in America if your Xbox 360 is broken you contact Microsoft and get a ticket number. You then need to find a coffin for your Xbox 360 and put your Xbox into that and send it in. They then repair or replace it with a refurb and send it back.
Gamestop or Walmart wouldn’t know, count or care that you have just done this.
I do remember a while back some stories of Microsoft selling refurbished units in Europe and possibly America. These may be counted as sales which would make sense as they are being sold to a new customer.
lans
April 26, 2010 at 15:07
that system is one of many ways of doing it, alot of people returned it to gamespot and walmart directly it is only after the huge demand did gamespot and walmart stop doing exchanges so at least 30% of the 20 million xbox sold in 2008 where counted as resales
RSA-Ace
April 27, 2010 at 19:27
Just wondering but surely a store will have say a 1 year guarantee which it uses for electronic products. So if something goes wrong in that year they will ‘swap’ it out (I’m 99% sure this will happen if it’s in the first 2 or 4 weeks of buying it). That’s what they do for most electronic products here even.
But yeah the statement at the bottom about refurbs being sales is correct. It’s a new user so it is a sale. I’m sure most console returned to MS are fixed (cost of fixing a console is way cheaper than making a new one) and sold back.
lans
April 25, 2010 at 18:58
most refurbs are counted as sales
ewie
April 26, 2010 at 16:12
An in your infinite wisdom that includes foresight into gt5 game play which was released last year.
can you provide a source for this.
In america they will repair your box for you .
It is only we that get refurbish units because we don’t have a repair centre in sa.
lans
April 27, 2010 at 13:00
ewie ur such a bitch, just because you back a losing horse forza 3 dont get all bitter with me, i dont need a source coz its common practice i observed when i went to atlanta for 2 months in 2008 evr1 says it there, even the best buy guys,alot of companies there even refuse to stock xbox 360 hardware and software! if it wasn’t for walmart i honestly think the xbox would be struggling in us as well, as i can get an xbox 360 arcade for $49 at walmart ,because of their crazy specials.
ewie just because your willing to be microsoft’s bitch does not mean i must join your cause,ms will do anything to win, bribe fools, advertise, anti competitive practices etc, there lots of people like me they just dont stick around very long because they’re immediately realize this a xbox 360 maintained site, whether you want to act partial or not microsoft is chiefly incharge of this site’s well being. You fell for the forza hype hook line and sinker, and most of you guys are still trying to wipe the turd of your faces. theres so much discent it’s funny, its a clear established fact that gt 5 is in a different league to forza
ewie
April 27, 2010 at 13:25
whatever
lans
April 27, 2010 at 13:28
said the defeated xbot spewing his guts everwhere who’s next!
Gavin Mannion
April 27, 2010 at 21:40
Random point of interest, Walmart doesn’t report it’s sales to NPD so if you think Microsoft is selling a ton of 360’s through Walmart then I guess it’s doing better than we think.
Your strange one man crusade against the 360 is pretty amusing.
RSA-Ace
April 28, 2010 at 06:41
Yes, Walmart and Amazon don’t report sales to NPD but… NPD estimate for those (or at least that’s what I read).
Nick de Bruyne
April 27, 2010 at 14:34
“its a clear established fact that gt 5 is in a different league to forza” – Can you please point us to the factual documentation.
I’m sure that the Department of Factual Information would be happy to clear this up if we gave them the call, they are the authority on facts, FACT!
krYtHan
April 27, 2010 at 16:05
lans is a noob. Fact.
Darkling
April 27, 2010 at 17:32
Troll is trolling-FACT.
lans
April 27, 2010 at 18:46
agreed dam trolls everywhere its like im reading terry pratchett!
Nick de Bruyne
April 28, 2010 at 03:07
Hey, don’t you come in here and talk to us like that, this is a revolutionary house. Get out, Bastard. Bloody Agent! You are just a boy.
I think someone needs to register MalemaGamer.co.za
lans
April 28, 2010 at 11:08
lol wut?