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Microsoft quarterly revenue down for the first time ever

Company-wide revenue is down despite 16 per cent increase in game earnings; 10m 360 units shipped in 9 months

Microsoft has announced that despite its videogame divisions reporting a 16 per cent increase, its company-wide third quarter revenue was USD 13.65 billion, a decline of 6 per cent over the same period in 2008.

According to reports from the Associated Press, this quarterly revenue drop is the first that Microsoft has seen in its 23 years as a publicly traded company.

Revenue specific to the Xbox 360 platform and PC games for the three month period increased 16 per cent, driven by an increase in console sales. Revenue was partially offset by price reductions of the console at retail.

Microsoft shipped 1.7 million Xbox 360 consoles during the three month period, compared to 1.3 during the same period in 2008.

The Entertainment and Devices Division (EDD), which also includes the Zune division, online services, Mediaroom and mobile platforms, among others, reported a division-wide revenue of USD 1.5 billion, down 2 per cent from the same three month period in 2008. Microsoft attributes this revenue loss to decreased sales of application software for Macintosh computers. According to the report, the loss would have been significantly higher if not for its Xbox and PC game sales.

In terms of the nine month period, EDD revenue decreased slightly at USD 6.6 billion, down 1 per cent from the same period in 2008. Microsoft attributed this to decreased Xbox 360 revenue due to the aforementioned price reduction. Microsoft shipped 10 million Xbox 360 consoles in the first nine months of FY09, up from 7.5 million units in the same period in 2008.

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