MS ships nearly 2 million 360s in Q1 of new fiscal year. EDD makes profit

http://microsoft.shareholder.com/redesign/EdgarDetail.asp?CIK=789019&FID=1193125-07-225854&SID=07-00

Revenue: 1,929
Operating Income: 165

(in millions)

The Entertainment and Devices Division ("EDD") products include the Microsoft Xbox video game console system, PC games, consumer software and hardware products, the Zune digital music and entertainment device, Mediaroom (our internet protocol television software), the Windows Mobile software platform, the Windows Embedded device operating system, and Windows Automotive. The success of video game consoles is determined by console innovation and quality, the portfolio of video game content for the console, online offerings, and the market share of the console. We believe that the functionality of the Xbox 360 console, games portfolio, and online offerings are well positioned relative to competitive consoles.

EDD revenue increased primarily due to increased Xbox 360 console and game sales. Xbox and PC game revenue increased $895 million or 148% as a result of increased Xbox 360 console sales, video game sales led by Halo 3, and Xbox 360 accessory sales. We shipped 1.8 million Xbox 360 consoles in the current quarter as compared to 0.9 million consoles in the first quarter of fiscal year 2007. Halo 3 was launched in September 2007 and generated approximately $330 million of revenue during the quarter. Increased revenue from sales of consumer hardware products, the Windows Mobile software platform, and Zune was offset by decreased revenue from Mediaroom.

EDD operating income increased primarily due to the increased revenue, partially offset by increased cost of revenue and increased sales and marketing expenses. Cost of revenue increased $584 million or 99% primarily driven by the increase in consoles sold and increased Xbox 360 console warranty expenses and inventory write-downs. Sales and marketing expenses increased $49 million or 23% primarily related to Xbox 360, including Halo 3, and Zune. Headcount-related expenses increased 6%, reflecting a 7% increase in headcount and an increase in salaries and benefits for existing headcount, partially offset by decreased stock-based compensation expense.

For the remainder of fiscal year 2008, we expect revenue to increase due to the increased sales of Xbox 360 consoles and related games, accessories, and services, and sales of Zune products. Revenue from existing mobility and embedded devices is expected to increase due to unit volume increases of Windows Mobile software driven by increased market demand for phone-enabled devices and Windows Embedded operating systems.

That is most impressive. :)

I wonder why microsoft always lists units shipped and the other two home console makers list units sold.frankeyser

It doesn't matter when the amount of revenue generated speaks for itself. Rather impressive.

I wonder why microsoft always lists units shipped and the other two home console makers list units sold.frankeyser

Sold to retail is what every one goes by, except for Sony who posts units made. I believeWii has shipped 300K more than the 360 at this point in time. 13.7 million to 13.4 million. Both are poised to have near 20 million shipped to retail by the end of year.

I wonder why microsoft always lists units shipped and the other two home console makers list units sold.frankeyser

Sony is showcasing shipped units aswell.

[QUOTE="frankeyser"]I wonder why microsoft always lists units shipped and the other two home console makers list units sold.Arnalion

Sony is shipped units aswell.

sony is shipped to their own warehouses which pads ps3 numbers by 1-2million.

Ms is shiped to retailers which is very different