360 Suffers Worst Quarter in 2 Years

err, NPD says differently...

Well the game division still posted a $169 million profit and the company as a whole posted profits also. So Microsoft is doing something Sony is not able to do and post profit.

Also the amount of consoles shipped increased from 8.7 million in 08 to 11.2 million in 09 for the fiscal year.

The Recession was bound to hit them eventually. This is interesting :

"Lack of perceived blockbuster software titles during the first six months of 2009 have led to an overall decrease in software sales year to date however this trend may reverse itself in the latter half of the year when highly anticipated titles Modern Warfare 2 and Halo:ODST are set to grace the Xbox 360."

I guess more than SW noticed the 360's 2009 so far.

i'm hoping microsofts gaming divisions survives.

err, NPD says differently...

dragonfly110

NPD =/= world

also, console/game sales aren't the only variables in determining how well a quarter went.

i'm hoping microsofts gaming divisions survives.

simslifer

i'm hoping microsofts gaming divisions survives.

simslifer

Here is from 2 months ago-

The games division, which encompasses PlayStation 2, PlayStation 3, and PSP hardware and software, saw an operating loss of ¥58.5 billion ($612 million/£403 million), an improvement on last year's loss of ¥124.5 billion ($1.3 billion/£859 million), which Sony is attributing to an improvement in the PS3 business and reduced hardware manufacturing costs.link

That is right just 2 months ago the game division for Sony post $612 million loss.

Its still kinda weird that MS lost money due to low system sales. Does this mean that MS has reached a point where the 360 has broken even at retail and production cost ?

EDIT: System Sales not Software Sales.

i'm hoping microsofts gaming divisions survives.

simslifer

Microsoft's gaming business loses $130 million in fourth quarter on decreased system sales, but ends $169 million in the black for the 12-month stretch; 11.2 million 360s shipped for the fiscal year.

Last year, Microsoft's entertainment and devices division--the business segment containing the company's Xbox 360 and Zune product lines--posted its first-ever operating profit for a full fiscal year. The division made it two in a row today, but only after a lackluster performance for the fourth quarter, as detailed in Microsoft fiscal year-end earnings report.

In the fourth quarter (the three months ended June 30), Microsoft's entertainment and devices division saw revenues of $1.19 billion, down 25 percent year-over-year from $1.59 billion. If there's any consolation there, it's that the segment's losses shrank at the same pace. The gaming business posted operating losses of $130 million for Microsoft's fourth quarter, down from $171 million over the same stretch last year.

For the 12 months ended June 30, entertainment and devices pulled in sales of $7.75 billion, down 6 percent from the prior year's take. While the overall revenue was down marginally, the segment's operating profits took a more significant hit, down 66 percent to $169 million from the previous year's $497 million.

Microsoft blamed both the quarterly and full-year slides on "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." While the company made less per system, it actually shipped out considerably more than in the previous year. Microsoft's fiscal 2008 saw the company move 8.7 million Xbox 360s to stores, while fiscal 2009's total jumped to 11.2 million.

The rest of the company fared similarly, as Microsoft's companywide sales and operating income also shrank. For the fourth quarter, Microsoft posted revenues of $13.01 billion (down 17 percent year-over-year) and operating income of $3.99 billion (down 30 percent). Over the course of the company's entire fiscal year, revenues were down 3 percent to $58.44 billion, while operating profits slipped 9 percent to $20.36 billion.

Microsoft's entertainment and devices division includes the Xbox 360, Zune, and Windows-based PC gaming, as well as other products, such as the Surface touch-screen table and Mediaroom Internet TV service.

Oh no MS gaming divisionmade a profit this year and is shipping about a million 360's a month! PS3 wins!

Has the 360 had one exclusive besides Ninja blade so far?

The Recession was bound to hit them eventually. This is interesting :

"Lack of perceived blockbuster software titles during the first six months of 2009 have led to an overall decrease in software sales year to date however this trend may reverse itself in the latter half of the year when highly anticipated titles Modern Warfare 2 and Halo:ODST are set to grace the Xbox 360."

I guess more than SW noticed the 360's 2009 so far.

Um... worldwide recession much? Video games are doing surprisingly well considering the state of the economy.

No one said M$ didn't turn a profit, just that they suffered their worst quarter in 2 years. Also, lol @ citing "shipped" numbers. Furthermore, that article you posted even states M$ is making less per console due to their desperate price slashing.f84jf84jf8fje93

[QUOTE="foxhound_fox"]

Um... worldwide recession much? Video games are doing surprisingly well considering the state of the economy.

f84jf84jf8fje93

Um... worldwide recession much? Video games are doing surprisingly well considering the state of the economy.

Has the 360 had one exclusive besides Ninja blade so far?

imaps3fanboy

Halo Wars

Star Ocean 4

Race Pro

Infernal: Hell's Vengeance :lol:

Because we didn't have to go out any buy more Xboxs thanks to the improved quality. haha!DPhunkT

[QUOTE="SolidTy"]

The Recession was bound to hit them eventually. This is interesting :

"Lack of perceived blockbuster software titles during the first six months of 2009 have led to an overall decrease in software sales year to date however this trend may reverse itself in the latter half of the year when highly anticipated titles Modern Warfare 2 and Halo:ODST are set to grace the Xbox 360."

I guess more than SW noticed the 360's 2009 so far.

blue_hazy_basic

We are fed U.S. numbers like they are from Heaven, when in reality, that's where the largest portion of the 360's install base is. I don't know where your figures come into play, but if you want, make a thread about it, and I can comment on it.

All I did was read this fellow's link and comment. That's my secret formula.

As far as the other consoles, again, I don't know, if you get some sort of link or thread started, I can comment on those as well.

[QUOTE="blue_hazy_basic"][QUOTE="SolidTy"]

The Recession was bound to hit them eventually. This is interesting :

"Lack of perceived blockbuster software titles during the first six months of 2009 have led to an overall decrease in software sales year to date however this trend may reverse itself in the latter half of the year when highly anticipated titles Modern Warfare 2 and Halo:ODST are set to grace the Xbox 360."

I guess more than SW noticed the 360's 2009 so far.

SolidTy

We are fed U.S. numbers like they are from Heaven, when in reality, that's where the largest portion of the 360's install base is. I don't know where your figures come into play, but if you want, make a thread about it, and I can comment on it.

All I did was read this fellow's link and comment. That's my secret formula.

As far as the other consoles, again, I don't know, if you get some sort of link or thread started, I can comment on those as well.

Taken from a thread a week or so ago

Link

[QUOTE="blue_hazy_basic"][QUOTE="SolidTy"]

The Recession was bound to hit them eventually. This is interesting :

"Lack of perceived blockbuster software titles during the first six months of 2009 have led to an overall decrease in software sales year to date however this trend may reverse itself in the latter half of the year when highly anticipated titles Modern Warfare 2 and Halo:ODST are set to grace the Xbox 360."

I guess more than SW noticed the 360's 2009 so far.

SolidTy

We are fed U.S. numbers like they are from Heaven, when in reality, that's where the largest portion of the 360's install base is. I don't know where your figures come into play, but if you want, make a thread about it, and I can comment on it.

All I did was read this fellow's link and comment. That's my secret formula.

As far as the other consoles, again, I don't know, if you get some sort of link or thread started, I can comment on those as well.

[QUOTE="SolidTy"]

The Recession was bound to hit them eventually. This is interesting :

"Lack of perceived blockbuster software titles during the first six months of 2009 have led to an overall decrease in software sales year to date however this trend may reverse itself in the latter half of the year when highly anticipated titles Modern Warfare 2 and Halo:ODST are set to grace the Xbox 360."

I guess more than SW noticed the 360's 2009 so far.

blue_hazy_basic

You're mostly correct. The Xbox 360 is the only home console of the three that has seen any growth so far this year, and its shipped numbers are up by 21%, while the PS3 and Wii have declined by 30% and 13%, respectively.

Source

I do find it quite odd that, in a year that the 360 has the lowest number of quality exclusives, it still manages to show significant growth while the other two, which have had a great year in terms of exclusives, have languished.

[QUOTE="SolidTy"]

[QUOTE="blue_hazy_basic"] Correct me if I'm wrong, but in the US isn't the 360 the only console whose sales are up? Don't have figures for rest of the world, but the total 360's shipped are up by about 25%. Whats the excuse for the consoles that have games in 09?blue_hazy_basic

We are fed U.S. numbers like they are from Heaven, when in reality, that's where the largest portion of the 360's install base is. I don't know where your figures come into play, but if you want, make a thread about it, and I can comment on it.

All I did was read this fellow's link and comment. That's my secret formula.

As far as the other consoles, again, I don't know, if you get some sort of link or thread started, I can comment on those as well.

Taken from a thread a week or so ago

Link

That's cool, the only problem is that it is only a fraction of the data we need to do a real comparison. IT's nice to see how things are going in the U.S., but it doesn't paint the overall picture.

From what I can gather now, the growth in the U.S. is a bandaid but the damage is done, according to both links, right?

That's cool, the only problem is that it is only a fraction of the data we need to do a real comparison. IT's nice to see how things are going in the U.S., but it doesn't paint the overall picture.

From what I can gather now, the growth in the U.S. is a bandaid but the damage is done, according to both links, right?

[QUOTE="blue_hazy_basic"][QUOTE="SolidTy"]

The Recession was bound to hit them eventually. This is interesting :

"Lack of perceived blockbuster software titles during the first six months of 2009 have led to an overall decrease in software sales year to date however this trend may reverse itself in the latter half of the year when highly anticipated titles Modern Warfare 2 and Halo:ODST are set to grace the Xbox 360."

I guess more than SW noticed the 360's 2009 so far.

The_Game21x

You're mostly correct. The Xbox 360 is the only home console of the three that has seen any growth so far this year, and its shipped numbers are up by 21%, while the PS3 and Wii have declined by 30% and 13%, respectively.

Source

I do find it quite odd that, in a year that the 360 has the lowest number of quality exclusives, it still manages to show significant growth while the other two, which have had a great year in terms of exclusives, have languished.

I agree with what you are saying, but again, we seem to be looking at U.S. only numbers, so the picture isn't complete.

What you mentioned about Exclusives is true...I think this is a great demonstration of Marketing, and it's ability to control perception. Marketing has been real fierce, and I think we are seeing it's effects right now.The Perception is that the 360 IS having a great year for exclusive games (or at least that it's equal to the PS3 this year), I think, to the mass market. They aren't aware of the exclusives, again, due to marketing and Lack of Marketing from all parties.

We seem to be witnessing a new potent way to do business. Sony and even Nintendo should think about Downsizing their 1st parties, and start paying for Timed Exclusives, because those seem to do just as much damage as real exclusives. The 3rd parties are ready, it's up to the Japanese console companies to recognize this.

Overall, Manticores may get less games, but it's too risky going this route any further.

[QUOTE="SolidTy"]

That's cool, the only problem is that it is only a fraction of the data we need to do a real comparison. IT's nice to see how things are going in the U.S., but it doesn't paint the overall picture.

From what I can gather now, the growth in the U.S. is a bandaid but the damage is done, according to both links, right?

blue_hazy_basic

Well, that's assuming that the UK represents all of Europe, Australia, etc. (Not to mention Japan which we all know the story there).

My understanding was that the U.S., and U.K. were the largest bits of the 360 install base this whole generation, especially the U.S.

[QUOTE="blue_hazy_basic"][QUOTE="SolidTy"]

That's cool, the only problem is that it is only a fraction of the data we need to do a real comparison. IT's nice to see how things are going in the U.S., but it doesn't paint the overall picture.

From what I can gather now, the growth in the U.S. is a bandaid but the damage is done, according to both links, right?

Well, that's assuming that the UK represents all of Europe, Australia, etc. (Not to mention Japan which we all know the story there).

My understanding was that the U.S., and U.K. were the largest bits of the 360 install base this whole generation, especially the U.S.

That's cool, the only problem is that it is only a fraction of the data we need to do a real comparison. IT's nice to see how things are going in the U.S., but it doesn't paint the overall picture.

From what I can gather now, the growth in the U.S. is a bandaid but the damage is done, according to both links, right?

[QUOTE="DPhunkT"]Because we didn't have to go out any buy more Xboxs thanks to the improved quality. haha!delta3074

That's cool, the only problem is that it is only a fraction of the data we need to do a real comparison. IT's nice to see how things are going in the U.S., but it doesn't paint the overall picture.

From what I can gather now, the growth in the U.S. is a bandaid but the damage is done, according to both links, right?

Because we didn't have to go out any buy more Xboxs thanks to the improved quality. haha!DPhunkT

So what if they suffered in one quarter, at the end they won the game by being in the black and getting profits 2 years in a row. :|

[QUOTE="SolidTy"]

[QUOTE="blue_hazy_basic"] Correct me if I'm wrong, but in the US isn't the 360 the only console whose sales are up? Don't have figures for rest of the world, but the total 360's shipped are up by about 25%. Whats the excuse for the consoles that have games in 09?rybe1025

We are fed U.S. numbers like they are from Heaven, when in reality, that's where the largest portion of the 360's install base is. I don't know where your figures come into play, but if you want, make a thread about it, and I can comment on it.

All I did was read this fellow's link and comment. That's my secret formula.

As far as the other consoles, again, I don't know, if you get some sort of link or thread started, I can comment on those as well.

I never mentioned the PS3 nor compared the 360 to the PS3.

As far as where I said more than SW noticed, it's clear as day. I simply READ it FROM A LINK. You going gung ho about comparing the 360 to various consoles, when the link is comparing the 360 to itself. You are going on and on about the other consoles, I don't know why, but carefully and slowly READ my post again. It's not talking about PS3, Wii, or any other system.

To answer you DIRECTLY, WHOEVER I QUOTED NOTICED, which is MORE THAN SW.

[QUOTE="rybe1025"]

[QUOTE="SolidTy"]

We are fed U.S. numbers like they are from Heaven, when in reality, that's where the largest portion of the 360's install base is. I don't know where your figures come into play, but if you want, make a thread about it, and I can comment on it.

All I did was read this fellow's link and comment. That's my secret formula.

As far as the other consoles, again, I don't know, if you get some sort of link or thread started, I can comment on those as well.

SolidTy

I never mentioned the PS3 nor compared the 360 to the PS3.

As far as where I said more than SW noticed, it's clear as day. I simply READ it FROM A LINK. You going gung ho about comparing the 360 to various consoles, when the link is comparing the 360 to itself.

[QUOTE="SolidTy"]

[QUOTE="rybe1025"]I made a link so can you show where you explain how more then SW has noticed? Just wondering since the 360 is the only console and the DS only handheld to see a increase in sales (NPD). Also the 360 has doubled the PS3 in the UK the second largest single market. So I am guessing what you ment by more then SW has noticed is that they also notice the 360 is the better console compared to the PS3.

rybe1025

I never mentioned the PS3 nor compared the 360 to the PS3.

As far as where I said more than SW noticed, it's clear as day. I simply READ it FROM A LINK. You going gung ho about comparing the 360 to various consoles, when the link is comparing the 360 to itself.

[QUOTE="SolidTy"]

I never mentioned the PS3 nor compared the 360 to the PS3.

As far as where I said more than SW noticed, it's clear as day. I simply READ it FROM A LINK. You going gung ho about comparing the 360 to various consoles, when the link is comparing the 360 to itself.

rybe1025

What the...Chill. This is the way I look at it. The Squeaky Wheel Gets the Grease. If we gamers want more Exclusives, we need to pipe up, or we get nothing, right?

Do you want more games? I know I do!

I wasn't bashing nor praising ANYTHING, you have me confused with other SW guys, because my posts aren't that dramatic...save when I joke around.

Now, as far as you talking about PS3 vs. 360, Don't we all know the 360 DESTROYS the PS3 in Sales and Overall Gaming Library? It's pretty obvious. I don't feel like beating a dead horse, but you seem content, so carry on.

Obviously, the 360 gaming experience is better, HOWEVER, 2009 hasn't been a great year for Exclusives imo (And I know I'm not alone, but the YEAR is not over...). It looks like this author has noticed that as well, and also, if anyone would like, they can look at 2009's exclusives and I think it's okay to ask for more.

We aren't any of these companies, we PAY them to ENTERTAIN us, so I don't mind speaking up.

Anyways, you need to look at my original post one more time, and this time, try not to get so rabid about it, I didn't say anything that was Harsh or bashing, I just agreed with a portion of the comment.

All I've been saying is what people's threads are about.
Go ahead and make your own threads, and see hwo I comment on them, because I only commented on what I read. That's it man.Nothing to it.

I wouldn't have bought 2 360's and have had 2 Xbox Live Gold Accounts if I hated my 360's.

fact is, the 360 may be doing alright sale wise, but the fact is all companies are taking a hit. Yeah nintendo is making money, but even the wii's sales are down a significant amount. (Though you could argue saturation at the price point)

[QUOTE="rybe1025"][QUOTE="SolidTy"]

I never mentioned the PS3 nor compared the 360 to the PS3.

As far as where I said more than SW noticed, it's clear as day. I simply READ it FROM A LINK. You going gung ho about comparing the 360 to various consoles, when the link is comparing the 360 to itself.

delta3074

I would not call him a fanboy but I never really see positives come from him about the 360. He reminds me of Bioshock, tries to act one way but his post say another. But then again I don't have too many positive things to say about my ps3 either...