The Xbox 360 turns a profit ... again

by Christopher Grant on Apr 25th 2008 1:01AM

Microsoft's Entertainment and Devices Division (EDD) – responsible for everything from the Xbox 360 to the Zune – has once again posted a net quarterly profit. What's behind the good news? "Xbox platform and PC game revenue increased $418 million or 85% primarily as a result of increased Xbox 360 console sales, Xbox 360 video game sales, and Xbox Live revenue."

Revenues are great and all, but what about profit? The EDD posted an operating profit of $89 million for the third fiscal quarter, and an operating income of $614 million for the nine-month period (a marked improvement from the $746 million loss during the same period last year). Just in case you're worrying that it can't keep it up, Microsoft expects fourth quarter revenue to increase "due to increased sales of Xbox 360 consoles and related games, accessories, and services." These things come in threes, right?

Source

Tags: EDD, Microsoft, Xbox-360

Reader Comments (83)

Out of topic, but I have to say this:

The 80GB Zune is awesome.

Carry on.

WOOT!

Hmmm I've had my 30GB iPod w/video forever (nearing 3 years I think), and it's not nearly enough space anymore. I was thinking about an upgrade. Any reason I should go with Zune over the iPod?

BTW I have a Mac, not sure if that matters.

zune isn't mac compatible. get another ipod.

yea it does zune will not work on mac unfortunately pc only

ohh btw ZUNE FTW sry for the trpl ltrs

Then your best bet is to stick with iPods. The zune software is PC only.

i just bought an 80GB Zune last week. this thing is great. ive never owned an iPod so i cant really compare from a day to day use aspect but from using friends iPods i can say i prefer the Zunepad to the Clickwheel any day.

only knocks against the Zune80 that i can think of off the top of my head are 1) no search function 2) i can add but not remove tracks from a playlist without a PC. it hates my desktop PC though for some reason. it wont stay connected so i cant get to the majority of my music collection. im using my laptop now but that only has 1,700 songs as opposed to 13,000 on my desktop.

I got myself one of them 32gb iPod touches. They're very brilliant. Shame it's just 32gb, but then again shame the Zune maxes at 80gb. 160gb ftw.

You can use bootcamp or VMWare Fusion and install windows and run your Zune on a Mac that way...

Ive had a couple ipods and I just got the 80 gig Zune for xmas, it DESTROYS the ipod in every category.

Call it a buzzword, but I think a lot of us have been getting drawn into Microsoft's "ecosystem" the same way the Apple fanboys have been into Apple's "ecosystem" over the years. Thing is, my WinMo phone doesn't force me to sync over Zune software... my Xbox doesn't force me to use a Zune... my Windows machine doesn't give a shit what I'm running... etc.

Agreed. I bought one a few weeks ago and I'm really liking it.

Only 13.76 years and the Xbox brand will break even.
Shane, are you going to throw a party?

I really do want to see MS do well enough to stay around with Sony. That way we are assured of competition for the best hardware the best tech. Ever since I have been gaming I have wanted to see games get better looking, more realistic, larger, you get the picture. Without advancing hardware gaming as I have know it would not be the same.

Over the next 3 years the 360 and the PS3 will put out some amazing software that seems too good to be true right now. Good job Microsoft gaming division, keep it up.

Doh, that last sentence sounded like a cheerleader.

Nintendo's expanded the market. There's now room for 3 systems. Casual, hardcore, and red headed step child.

It doesn't matter that the EDD hasn't broken even over its lifespan. As long as the company as a whole remains profitable (which Microsoft has,) they can consider it an investment.

Right now, the EDD is turning a profit, and there is no reason to believe that will change any time soon. That's all that matters.

"Looking at the books, Xbox dision if far from breaking even or making a profit. You would have to be a pretty dumb shareholder to see the tricks Microsoft are playing here. Still nothing like good spin."

Looking at the books, they just made a profit, dumbass. Obviously you have never taken accounting. Operating income- without tax, non operating gains or losses, interest. Which means, they made $89 million more than it cost to do business. Which means its a profit. I did this not because I am a ms fanboy, but because you obviously have no idea what goes on in accounting.

Also, They don't need to account for the 1.15 billion when making this statement. Those are sunk costs, and they have already been realized.

@rv - Remember, you're replying to Tranando. Just because you happen to have facts on your side doesn't mean that you're right as far as he's concerned.

Having the entire division making a profit is a good thing. The console itself has been profitable for quite a while now.

Oh, and I DO own Microsoft stock through one of the mutual funds that I invest in. I'm a gamer that happens to have a rather nice real world job.

N B4 OH DEH R IN TEH HOL LEIK 1 BILYON LOLZ!

Anyways, nice to see consoles turning profit. Is the PS3 turning a profit yet? I remember an article talking about how they were close but I'm not sure if they have reached that point yet.

Oh and did they ever figure out the percentage profit on Wiis? My guesstimate is $125... Don't hurt me Fernando :P

Unless they changed it, Zunes only run on windows. So yes, it does matter if you run a mac.

FINE! I didn't want one anyway. LOL

Well they will run on a Mac if you have the Intel one, just pop in XP.

Are they still losing money on the consoles sales?

Nope Microsoft has been making money on each console sale almost a year after xbox360 initial launch.

Revenus?

listen, none of you own microsoft stock. Dont pretend you do. Why do you care if they, or any company make a profit? Spend time figuring out if your making a profit in life.

I own microsoft stock

*SOB*
that was a lie!

I KNEW IT!!. No1 here owns MS stock. Or any stock. Gamers and stock owners are like apples and oranges, way too different. :)

actually i do own 1 stock in Mobile

Hey, I happen to own some stock. Not Microsoft stock, but stock nonetheless.

But then, I'm a personal financial representative; if you work at a restaurant, you eat a lot of food, if you work at a game store you buy a lot of games, if you work at a music store you learn how to play, and if you work in finance, you put your money to work.

what happens if you dont work? Do you cease to exsist or something?

no, you're classified as a college student

Just because you are unemployed does NOT mean you are a student.

whoa Demon, chillax. (yes i realize how retarded that sounds) It was a joke. I realize that many unemployed people are not college students. its what... 2am eastern time, so i guess the "i'm so tired everything is funny" hasn't hit central or western...or outside of eastern in general.

I care. I like what MS has done in the console market so far. Both systems have had ups and downs, but overall I've liked them both. I'd prefer they stay in the market for now. Nintendo is raking in the cash, but for me personally, most of their games are simply worthless. I prefer the content on the other two platforms... so, yes, I care that they turn a profit.

I do own stock in Microsoft. I only have like 3 shares, but it's still stock.

What makes you think we don't own Microsoft douchebag? Oh yeah! I forgot only fanboys can be readers of gaming blogs.

Hey! I own stock!

Granted, it's worth about 3 cents now and I bought it when it was 25 cents (I sure can pick 'em!), but damnit! – I own stock!

"I KNEW IT!!. No1 here owns MS stock. Or any stock. Gamers and stock owners are like apples and oranges, way too different. :)"

Apples and Oranges is to signify a lot of similarities, but not quite the same thing...

Well actually, I do, Ninty as well.

My little bro sure enjoys his first gen white 30gb Zune.
And we have used Windows as our OS our whole life.

But yet it still feels a bit strange if we got a 360 when we've only owned Playstation consoles. PS360 FTW!
: )

You think PS360 is awesome, wait until you go for the PSWii60 combo. It's so awesome! Like having a Voltron of gaming goodness in your bedroom.

...except, eventually, you look at your bank account and realize there's no money left.

Then, you come to Joystiq, and read about 10 or so games coming out within the next month, and realize there's no way you can buy/play/complete them all.

A double-edge sword, I tell ya...

:(

yea i say the same thing only time i get a game for free is christmas (im 16)

yea i hear ya Ninjakamster. Microsoft is in like all my gadgets except my video games. i run Windows on my PC's, i have a Windows Mobile 6 smartphone (Moto Q9m), and i just bought an 80GB Zune. i wont say never on the Xbox thing but Sony and Nintendo have everything i need right now video game wise.

@jorojoserojas

Pii60 + Gamefly = FTW

"These things come in threes, right?"

More like 360s. Buhzing!

:|

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The Xbox 360 turns a profit ... again

Reader Comments (83)

Posted: Apr 25th 2008 1:05AM jorojoserojas said

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