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Microsoft has record quarter posting $18.06 billion, Xbox 360 remains top-selling console

by Ethan Powers on July 19, 2012

Microsoft and the Xbox 360 are sitting pretty following the company’s release of its quarterly earnings report for the period ending on June 30th.

Microsoft’s had a record quarter, posting a staggering $18.06 billion with an operating income of $192 million. Compare that to the $17.37 billion the company made in the same quarter in 2011. However, Microsoft also posted a quarterly net loss of $492 million, compared to last year’s gain of $5.87 billion.

But this quarter is hardly one that Microsoft is unable to boast about, especially in comparison with its competitors. Revenue for the total retail (including hardware, software, accessories) spent on the Xbox 360 reached $272 million, the most for any console in the U.S. To put that in perspective, gamers spent more on Xbox 360 products than they spent on the other two current-generation consoles combined.

The Xbox 360 also sold 257,000 units in June, holding 47 percent share of current-generation console sales in the U.S., marking the 18th consecutive month that the system has held more than a 40 percent share of current-generation console sales in the U.S. Additionally, revenue for Microsoft’s Entertainment and Devices Division grew 20 percent for the quarter.

Also worth noting, Xbox Live membership increased more than 15% year over the year as it continues to add streaming services and partnerships. Microsoft attributes its Entertainment and Devices Division revenue growth to the addition of Skype as well as the announcement of SmartGlass and the cross-platform possibilities it presents.

“The combination of solid revenue growth and rigorous cost discipline drove double-digit operating income growth for the quarter, adjusting for the goodwill impairment and deferred revenue,” said Peter Klein, chief financial officer of Microsoft. “We are focusing our resources in strategic areas that will deliver shareholder value and long-term growth opportunities.”

Kevin Turner, Microsoft’s chief operating officer, also commented on the company’s record posting and its situation going forward:

“Delivering a record year takes great products, solutions, services, and tremendous execution by our people. Our enterprise business is firing on all cylinders and we couldn’t be more excited about the wave of innovation and new releases that position us well for the coming years.”

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  • Anon

    Incoming Allen comment in 3, 2, 1…

  • AKA Zzz

    Allen lost

  • GreenRings

    I have been telling everyone all along, and it looks like I was right. The Xbox 360 won this generation hands down. I think Sony PlayStation is in jeopardy of being around for another generation.

    The Vita – Flop
    The Move – Flop
    The PS3 – you get the picture.

  • Lol@allen

    Only in the US right Allen lol


    Yeah soo… didn’t read the only in US part?

    3rd paragraph

    the most for any console in the U.S.

    4th paragraph

    holding 47 percent share of current-generation console sales in the U.S

    Plus you use vgchartz numbers if they represent what you like; vgchartz has been praised on being amazingly accurate and PS3 does indeed kick the crap out of 360.

    Sorry but it’s just sad that you really are this blind.

  • Maper Syrup

    Thanks for repeating the article..

  • bigjershby

    ” Microsoft also posted a quarterly net loss of $492 million, compared to last year’s gain of $5.87 billion.”

    if i had to pick who “won” it would be nintendo not only did they sell the most units by a mile but they r the only 1s that didnt sell 1 unit for a loss lol every wii was sold for a profit

    but that being said what sparks this brand loyalty? id like to know if possible

  • Maper Syrup

    Vgchartz has also been praised on half a million-one million delayed adjustments yearly.

    RROD$2PLAY.. I know what im talking about because im an active member there. Ive seen how bad the adjustments could get. Just two months ago, they adjusted the console 2011 number for more than 500k in total… talk about accuracy idiot.


    Wow howd they lose money? Anyways i hope now they realise its time for next gen

  • Cool dude

    The MS’ acquisition of an ad company down sized in market value, thus they lost 6 billion dollars on that part which ate up all of their profit for one quarter.

    MS’ share prices, surprisingly, did not go down but went up 2% despite the loss. Possibly because of the increase in the entertainment division by 20%. Which is impressive knowing that Xbox shipments were down….

  • bigjershby

    japan gets hit with a nuclear meltdown and a tsunami within 7 days(its a tiny country) and u laugh and mock nintendo and sony for losing money then sit here and praise mirosoft where is this brand loyalty coming from i say? is it some patriotic thing cuz ur xbox isnt made in america lol

  • Maper Syrup

    Majority of the consoles you just said were made by Foxconn in China… Not sure where your coming from fanboy.


    Nintendo have been losing money for a while now

  • Rumor Man

    Sony going cloud only next-gen.


    LOL @ Maper Syrup (cool dude – too many duplicate comments under both names).

    You say you know about how bad vgchartz adjustments can get… YOU DO ADMIT that vgchartz makes adjustments when they are wrong…..


    so the year on year sales that show PS3 outsold 360 by like 1,000,000 each year for the last 3 years in a row would be the adjusted sales. It also shows PS3 outsold 360 by about 40,000 each week this month. Pretty big gap.

  • bigjershby

    sigh…… lill go play xenoblade some more and give yall alil more time to growup ok?

  • Cool dude

    One flawless fact remains… VGchartz is only a estimate.

    Did you also know that VG chartz 2011 numbers adjusted 3 times?

    Just one question.. would you trust an estimation website or official reports?

  • Gman

    What about Europe and Asia? Are they not important too?

  • djgood

    of course XBOX 360 ROCKS!!!!!!!!!!!!!!!!

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