GamerScoreBlog has a summary of the Xbox-related portion of Microsoft's Q3 earnings conference call:
- This quarter, we shipped 1.7 million Xbox 360 consoles, bringing our cumulative sales to date to 3.2 million consoles with 1.8 million in North America, 1.1 million in Europe and 300,000 in the rest of the world.
- During the third quarter, we extended Xbox 360’s market leadership position with a presence in nearly 30 countries.
- According to NPD, our life-to-date attach for software and peripherals in the U.S. through March was 4.5 and 3.0 per console respectively – higher than any other gaming console at this point in the lifecycle.
- Despite a relatively small installed base, three of the top 10 selling video games in the US in March were for the Xbox 360 platform.
- Attach rates on the Xbox Live service remain strong, with more than half of all Xbox 360 consoles sold connected to the service either via Silver or Gold tier memberships.
- Gamers have downloaded 10 million pieces of digital content from Xbox Live Marketplace in less than five months.
- Over 4 million downloads have been made from Xbox Live Arcade since launch.
- Because of our increased optimism and strong console shipments in Q3, we are tightening our previously announced fiscal year shipment guidance of 4.5 to 5.5 million consoles to 5.0 to 5.5 million consoles.
One big culprit: spending on the Xbox 360. Sales have gone up significantly, but because Microsoft loses money on every unit sold, the company's profitability suffers. [CFO Chris] Liddell said the delay of Sony's PlayStation 3 was an opportunity for Microsoft to grab share, and he forecast heavy spending on the console throughout the rest of the fiscal year, but not into 2007.
The company's Home and Entertainment segment, which makes the Xbox 360, increased revenue by 80% to $1.1
billion due to strong demand for the console. But the division's loss grew even faster, ballooning by 121% to $388
million.
Liddel also said the company's $2.4 billion increase in spending for 2007 includes no "trojan horses or secret
projects," assuring the money will be spent on stuff we already know about.
Damn. I had my heart set on a 360-branded hover board.
