Posted by Victor Godinez
3:59 PM, January 24, 2008
Microsoft just announced its second quarter financial results, and there are lots of interesting tidbits to comb over in the report from what's still probably the most influential technology company in the world.
But let's focus on the Xbox stuff.
For example:
Exiting the calendar year, the life to date sales of Xbox 360 consoles reached 17.7 million units, representing a 70% increase from the prior year.
As near as I can figure, the original Xbox sold about 24 million units over a four-year lifespan. Since that 17.7 million Xbox 360 sales figure is essentially over two years (end of 2005 to the end of 2007), you double that number and get 35 million or so over a four-year period.
So the 360 is definitely selling better than the original Xbox, and Microsoft has to be happy about that (even if the Wii is eating the 360's lunch).
Also, Microsoft reports that its Entertainment and Devices division (which is mostly the 360, but also includes the Zune and other assorted misfit gadgets) had sales of nearly $3.1 billion in the second quarter, up from $2.97 billion a year ago.
But the unit also reported operating income of $357 million, compared to a $302 million loss in the same quarter last year.
What happened in the second quarter (actually, the last three calendar months of 2007) to boost revenue and income? Halo 3, of course.
In fact, the quarter after a Halo release has generally been the only time the Xbox division could count on a profit since the original box's release in 2001.
Microsoft obviously wants to see more consistency out of the Entertainment and Devices division. But the company can afford to shovel money into the segment for as long as it wishes.
After all, Microsoft's overall quarterly profit was $4.71 billion.
That pays for a lot of RRoD repairs.
(Use Darth Vader voice) NOOOOOO! New 'Battlefield' and 'Mercenaries' to ship next year.
