Main points:
- 1.1m Xbox One + 360 shipments compared to 1m 360 shipments in same period last year
- Net Income: $4.61bn (down 7.1% from same period last year) - Lower than what analysts expected
- Nokia contrubuted to the lower profits
- Xbox revenue increased 14% to $104m
Computing and Gaming Hardware
The D&C Hardware segment was renamed Computing and Gaming Hardware in the fourth quarter of fiscal year 2014. Computing and Gaming Hardware revenue increased $274 million or 23%, driven by higher Surface and Xbox Platform revenue. Gross margin increased $665 million compared to the prior year, which included the Surface RT inventory adjustment charge. Current year cost of revenue included Surface inventory adjustments resulting from our transition to newer generation devices and a decision to not ship a new form factor.
· Surface revenue was $409 million, driven by our second generation Surface 2 and Surface Pro 2 devices, and the recent launch of Surface Pro 3.
· Xbox Platform revenue increased $104 million or 14%, driven primarily by increased console revenue. We sold in 1.1 million consoles in the fourth quarter, as we drew down channel inventory, compared to 1.0 million consoles during the prior year.
During the E3 conference in early June, we highlighted several new titles that will be available exclusively on the Xbox Platform. We also launched a lower-priced console without the Kinect sensor to provide additional choice to our customers, and are planning to offer Xbox One in additional markets beginning this fall.
Microsoft Results:
NNID: FrequentFlyer54
