JaggedSac on 23 July 2009
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Entertainment and Devices Division
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| Three months ended June 30, | Twelve Months Ended June 30, | |||||
| (In millions, except percentages) | 2009 | 2008 | Percentage Change |
2009 | 2008 | Percentage Change |
| Revenue | $1,189 | $1,590 | (25)% | $7,753 | $8,206 | (6)% |
| Operating loss | $(130) | $(171) | 24% | $169 | $497 | (66)% |
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Entertainment and Devices Division (“EDD”) offerings include the Xbox 360 platform (which includes the Microsoft Xbox 360 video game console system, Xbox 360 video games, Xbox Live, and Xbox 360 accessories), the Zune digital music and entertainment platform, PC software games, online games and services, Mediaroom (our Internet protocol television software), the Surface computing platform, mobile and embedded device platforms, and other devices. EDD leads the development efforts for our line of consumer software and hardware products including application software for Apple’s Macintosh computers and Microsoft PC hardware products, and is responsible for all retail sales and marketing for Microsoft Office and Windows operating systems.
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Three months ended June 30, 2009 compared with three months ended June 30, 2008
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EDD revenue decreased across most lines of our business. Revenue from non-gaming business decreased $291 million or 42%, primarily reflecting decreased Mediaroom and Zune revenue. Xbox 360 platform and PC game revenue decreased $110 million or 12%, primarily as a result of decreased Xbox 360 console sales and decreased revenue per Xbox 360 console due to price reductions during the past 12 months, partially offset by increased Xbox Live revenue. We shipped 1.2 million Xbox 360 consoles during the fourth quarter of fiscal year 2009, compared with 1.3 million Xbox 360 consoles during the fourth quarter of fiscal year 2008. Foreign currency exchange rates accounted for a $27 million or two percentage point decrease in revenue.
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EDD operating loss decreased primarily due to decreased costs of revenue and sales and marketing expenses, mostly offset by decreased revenue. Cost of revenue decreased $266 million or 31%, primarily driven by decreased Xbox 360 platform costs. Sales and marketing expenses decreased $107 million or 30%, reflecting decreased advertising and marketing expenses.
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Twelve months ended June 30, 2009 compared with twelve months ended June 30, 2008
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EDD revenue decreased across most lines of business. Revenue from our non-gaming business decreased $292 million or 12%, primarily reflecting decreased Zune and PC hardware product revenue. Xbox 360 platform and PC game revenue decreased $161 million or 3%, primarily as a result of decreased revenue per Xbox 360 console due to price reductions during the past 12 months, partially offset by increased Xbox 360 console sales and increased Xbox Live revenue. We shipped 11.2 million Xbox 360 consoles during fiscal year 2009, compared with 8.7 million Xbox 360 consoles during fiscal year 2008. Foreign currency exchange rates accounted for a $74 million or one percentage point decrease in revenue.
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EDD operating income decreased primarily due to decreased revenue and increased research and development expenses, partially offset by decreased cost of revenue. Research and development expenses increased $252 million or 16%, primarily reflecting increased headcount-related expenses associated with the Windows Mobile device platform, driven by recent acquisitions. Cost of revenue decreased $326 million or 7%, primarily due to decreased Xbox 360 platform costs.
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Wierd that it says they have shipped less than last year. Thought they were up YoY. Must only be in US. XBox 360 platform costs dropped. Operating loss for the last three months is less than the operating loss for the last years three months. Overall, MS did not have a good financial report.
