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1.1 million Xbox consoles shipped last quarter

1.1 million Xbox consoles shipped last quarter

Tue 22 Jul 2014 9:26pm GMT / 5:26pm EDT / 2:26pm PDT
Business

Microsoft full-year revenues up more than 11% to $86.8 billion, net income up slightly for eventful fiscal year

It was a hectic fiscal year for Microsoft, what with the massive restructuring, the acquisition of Nokia Devices and Services, the retirement of Steve Ballmer, the appointment of Satya Nadella as his successor, and the launch of the Xbox One. Microsoft today reported its financial results for the fourth fiscal quarter and full year ended June 30, and despite all that change, the results were largely positive.

Full-year revenues were up more than 11 percent to $86.8 billion, with the company posting nearly $22.1 billion in net income, up about 1 percent year-over-year. For the fourth quarter on its own, revenues were up nearly 18 percent to $23.4 billion, while net income slipped 7 percent to $4.612 billion.

The company's recently renamed Computing and Gaming Hardware segment (formerly Devices and Consumer Hardware), saw fourth quarter revenues up 23 percent thanks to growing Xbox hardware and Surface tablet sales. Xbox hardware on its own saw sales jump 14 percent, as Microsoft shipped 1.1 million Xbox 360s and Xbox Ones in the quarter. That's a slight uptick over the 1 million systems it shipped in the prior year fourth quarter, as Microsoft noted that it was drawing down channel inventory of its gaming hardware. (In April, Microsoft announced that it had shipped 5 million Xbox One systems.)

The Devices and Consumer Other segment, which includes Xbox Live revenues and first-party Xbox software, also saw a boost in the fourth quarter. Microsoft reported revenue for that segment up 20 percent year-over-year, though it attributed the gains mainly to better performance of Bing search revenues and consumer subscriptions for its Office 365 program.

2 Comments

Anastasios Hatzis Community Manager

15 40 2.7
Xbox hardware on its own saw sales jump 14 percent, as Microsoft shipped 1.1 million Xbox 360s and Xbox Ones in the quarter. That's a slight uptick over the 1 million systems it shipped in the prior year fourth quarter,
That 14% jump must be some kind of Pyrrhic sales jump, or should we say shipped jump? In the prior year fourth quarter most consumers did know about upcoming XBox One launch, so we can expect that the figures could have been higher last year. And this year fourth quarter it is both, 360 and One combined. In a launch year.

I have read, Nadella reassured to stick with the XBox brand. But I really don't know how reasonable this strategy sounds to investors. I wonder how many of them "hate" XBox for eating so many profits. I understand that XBox could bring some profit on the long run (it hasn't yet in two generations), but I don't see how this will happen with the One.

Posted:3 months ago

#1

Nick Wofford Hobbyist

180 190 1.1
Anastasios,
The XB1 is selling better than the 360 did, and that console cut MS's Xbox investment from $10B down to $2.8B in its lifetime, with a billion down the drain to the RROD. If the XB1 can perform equally as well, then the whole division has the potential to generate some great profit during this generation. This industry isn't a zero-sum game; just because the PS4 is selling better doesn't mean the XB1 can't make money. Otherwise, both the PS3 and the 360 were failures compared to the Wii.

Posted:3 months ago

#2

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