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.”
- This article was updated on:March 8th, 2018