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Forums - Microsoft Discussion - Microsoft Earnings Announcement - July 22nd 2010

Wow this isn't posting what I'm saying...

They profited 981m from April 2009 - March 2010 in EDD - and thats mostly X360. Revenues were $7.647b in that period.

Even though their FY ends in June, I use those figures for clean comparison to Sony / Nintendo.



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kowenicki said:
Darc Requiem said:
Slimebeast said:

$15.3 billion is less than Apple's $15.7 billion.


Yeah MS and Apple aren't really competitors any more. While MS still makes most of their money from software, Apple makes the bulk of their funds from hardware now.


Yes hardware has bigger revenue but less profit... generally... unless its an ipad!! lol


Actually, the iPad has unusually low margins for Apple hardware. Apple had to go through the trouble of explaining to shareholders that the reduced margins were to grab as much tablet market share as possible before all Apple's competitors rushed in.

Just for comparison, iSuppli estimates the manufacturing cost of an iPad to be $260 for the base SKU that sells for $500. The estimated cost of manufacturing an iPhone 4 is about $190, and you can buy one unlocked for the equivalent of $600 USD. So manufacturing accounts for about 52% of the sticker price of an iPad as compared to 32% of the sticker price of an iPhone.

I'm not sure if any product on this planet beats the margins on Office and Windows, though.



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kowenicki said:
Slimebeast said:
DirtyP2002 said:
TheSource said:

Not really - they're doing well - EDD made $850m profit in the year ending March 2010. I'd just like to see in writing what they expect Kinect to do in the fiscal year so we can know if they're forecast / expectations end up being wildly optimistic, realistic, or pessimistic compared to the results. With the bundles its going to be in millions of households, the question is how many millions. But they're probably not going to issue a forecast.


in the 9 months ending march 2010.

You are welcome

Is that for the "new" reorgianized entertainment division? But how much of thatr profit is from other things than Xbox?


i dont think anything else in there makes a profit...

So if it is like DirtyP says that for the year the profit is $1 billion, that's amazing in my opinion for the Xbox department. Total revenue for Xbox related things is I think $4-$4.5 billion (according to someone, maybe DirtyP), so if that actually produced a whole billion Dollars in profits in this competitive environment that's a great profit margin... over 20%. I am impressed.



TheSource said:

Not really - they're doing well - EDD made $981m profit in the year ending March 2010 on very healthy revenues. I'd just like to see in writing what they expect Kinect to do in the fiscal year so we can know if they're forecast / expectations end up being wildly optimistic, realistic, or pessimistic compared to the results. With the bundles its going to be in millions of households, the question is how many millions. But they're probably not going to issue a forecast.



Kinect launch is still more than a quarter away, I doubt that its going to be apart of any forward looking statements.  This is going to be a pretty vanilla report for them.  The majority of the Xbox sales will be the older model, so nobody should be expecting much info to come from this quarter. I doubt they will even mention improved margins on sales, just some plain to the date shipment number.



MICROSOFT CORPORATION

 

Segment Revenue and Operating Income (Loss)
(In millions)

 

  Three Months Ended
June 30,
Twelve Months Ended
June 30,
2010 2009   2010 2009  
Revenue
Windows & Windows Live Division $4,548 $3,169 $18,491 $14,974
Server and Tools 4,012 3,528 14,866 14,191
Online Services Division 565 501 2,199 2,121
Microsoft Business Division 5,250 4,567 18,642 18,910
Entertainment and Devices Division 1,600 1,257 8,058 8,035
Unallocated and other 64 77 228 206
Consolidated $16,039 $13,099 $62,484 $58,437
 
Operating Income (Loss)
Windows & Windows Live Division $3,063 $1,929 $12,977 $9,982
Server and Tools 1,546 1,206 5,491 4,803
Online Services Division (696) (585) (2,355) (1,652)
Microsoft Business Division 3,284 2,706 11,776 11,664
Entertainment and Devices Division (172) (141) 679 108
Corporate-level activity (1,095) (1,128) (4,470) (4,542)
Consolidated $5,930 $3,987 $24,098 $20,363


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Waiting to find out diffrence between MS & VGZ figures.



Entertainment and Devices Division

 

 
  Three months ended June 30, Twelve Months Ended June 30,
(In millions, except percentages) 2010 2009 Percentage
Change
2010 2009 Percentage
Change
Revenue $1,600 $1,257 27% $8,058 $8,035 0%
Operating income (loss) $(172) $(141) (22)% $679 $108 529%

 

 

 
Entertainment and Devices Division (“EDD”) offerings include the Xbox 360 platform (which includes the Xbox 360 gaming and entertainment console, Xbox 360 video games, Xbox LIVE, and Xbox 360 accessories), the Zune digital music and entertainment platform (“Zune”), PC software games, online games and services, Mediaroom (our Internet protocol television software), the Microsoft Surface computing platform, Windows Mobile and Embedded device platforms, application software for Apple’s Macintosh computers, Microsoft PC hardware products, and other devices. EDD is also responsible for all retail sales and marketing for Microsoft Office and Windows operating systems.

 

 
 
Three months ended June 30, 2010 compared with three months ended June 30, 2009

 

 
 
EDD revenue increased reflecting an increase in Xbox 360 platform and PC game revenue and increased revenue from the non-gaming portion of the business. Xbox 360 platform and PC game revenue increased $228 million or 30%, primarily reflecting increased Xbox 360 consoles sold and increased Xbox LIVE revenue, partially offset by decreased revenue per console. We shipped 1.5 million Xbox 360 consoles during the fourth quarter of fiscal year 2010, compared with 1.2 million Xbox 360 consoles during the fourth quarter of fiscal year 2009. Non-gaming revenue increased $115 million or 23%, primarily reflecting increased sales of Windows Embedded device platforms.

 

 
 
EDD revenue for the fourth quarter of fiscal year 2010 included a favorable foreign currency exchange impact of $52 million.

 

 
 
EDD operating loss increased primarily reflecting increased operating expenses, offset in part by increased revenue. Cost of revenue increased $251 million or 38% primarily from charges resulting from the discontinuation of the KIN phone and increased royalty costs resulting from increased Xbox LIVE digital marketplace third-party content sales. Sales and marketing expenses increased $73 million or 29% primarily due to increased Xbox 360 platform marketing activities. Research and development expenses increased $48 million or 10%, primarily reflecting increased third-party development and programming costs and increased headcount-related expenses.

 

 
 
Twelve months ended June 30, 2010 compared with twelve months ended June 30, 2009

 

 
 
EDD revenue was nearly flat reflecting increased revenue from the non-gaming portion of the business, partially offset by decreased revenue from Xbox 360 platform and PC games. Non-gaming revenue increased $35 million or 1% primarily reflecting increased sales of Windows Embedded device platforms, offset in part by decreased Zune and Windows Mobile revenue. Xbox 360 platform and PC game revenue decreased $12 million, primarily reflecting a reduction in Xbox 360 consoles sold and revenue per console, offset in part by increased Xbox LIVE revenue. We shipped 10.3 million Xbox 360 consoles during the fiscal year 2010, compared with 11.2 million Xbox 360 consoles during fiscal year 2009.

 

 
 
EDD operating income increased due to reduced operating expenses. Cost of revenue decreased $528 million or 11%, primarily due to lower Xbox 360 console costs, offset in part by increased royalty costs resulting from increased Xbox LIVE digital marketplace third-party content sales and charges resulting from the discontinuation of the KIN phone. Research and development expenses decreased $34 million or 2%, primarily reflecting decreased third-party development and programming costs.


172 million loss for edd



Imagine not having GamePass on your console...

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Unfortunate they've gone the opposite way to a billion, never realised the Kin could be such a big failure.

MS should be optimisitic about the next 2 Q's though, especially Q2 2011, what with all the high prices on everything.