Quarterly profit at Xbox 360 division rises 96 percent despite flat sales
Microsoft as a whole was stung with an 14 percent year-on-year decline in profit for its most recent fiscal quarter ending September 30th. A 39 percent drop in revenue from sales of Windows and Windows Live products didn't help, and this was attributed the sheer amount of revenue invested in the software giant's Windows 7 pre-order programs. The overall profit decline was still smaller than what analysts had previously projected. Another bright spot proved to be Microsoft's Entertainment and Devices division, home of the Zune and Xbox 360 businesses, boosted by demand for the Xbox 360.
The E&D's revenue only slightly increased to $1.89 billion USD, but this still led to $312 million USD in quarterly profit. This is nearly double the $159 million USD profit earned during the same three-month period back in 2008. Xbox 360 hardware shipments also fell slightly to 2.1 millino units for the quarter. Profitability was achieved in light of fairly flat sales through decreased Xbox 360 platform costs, further illustrating the benefits of continually maintaining console production processes. Microsoft also achieved mastery in September by making up nearly 32 percent of the gaming industry's overall revenue through hardware and software sales, as tracked by the NPD Group.
Microsoft's general manager of investor relations, Bill Koefoed, underlined confidence in the company's Xbox 360 business and confirmed in this morning's earnings call that the platform now benefits from an 8.7 software attach ratio. This means an average of 8.7 Xbox 360 games are sold for each console. Furthermore, the Xbox 360's global install base has now hit over 34 million units, an increase of 3 million units over just this past two months. Xbox Live revenues also increased 50 percent.
Shipped is not the same as sold and people are more interested in the sold part if that stock does not sell which is on the shelves no more stock will be bought
Total number of consoles which have been shipped towards retailers is not the same as actual total sales number of consoles which have been purchased by consumers ....
Nonetheless, console companies (Sony, Microsoft, Nintendo) do take pride of how many units have shipped or installed thus far to retailers regardless of bona fide total sales towards consumers...
Investor reports aren't about console races or fanboy debate, they're present to tell their people "Yes we made this many and we sold them to retail channels turning x amount around"
Shipped = Sold, go ask a Target / Bestbuy / Meyers if they bought their inventory or if MS dropped it off with a tin can asking for them to put their share of the money in it. We're not talking about anything complex here.
Kinda funny that the whole argument is "well they sold them they just didn't sell them."
http://www.microsoft.com/presspass/press/2009/oct09/10-23fy10Q1earnings.mspx?rss_fdn=Press%20Releases
RED RING OF DEATH