Microsoft profits down, Xbox 360 revenues up
The Xbox 360 was a notable bright spot in Microsoft's latest second quarter fiscal earnings report, otherwise marred by a tardy consumer Windows Vista release. In a brief phone interview with Peter Moore, vice president of Interactive Entertainment Business at Microsoft, we went over the announcement and what it meant for the 360.
Moore was eager to remind us that Microsoft had met their goal of shipping 10 million Xbox 360 units, breaking the numbers down as follows: 6 million in North America; 3.1 million in Europe; and 1.3 million in the remainder of the markets it's available in (including Japan). There were no specific numbers for Japan, but he was happy to point out Gears of War'scozy spot on the Japanese sales charts.
But it's not all good numbers. They've also altered their forecast for the fiscal year ending June 30th, from a goal of 13 to 15 million Xbox 360 consoles shipped to just 12 million, leaving them a relatively attainable goal of shipping an additional 1.6 million units over the next five months. Their real goal: profitability by this time 2008. With revenues of $2.96 billion, a 76% jump from last year, and a loss of $289 million, roughly the same as last year, profitability isn't too far off.
To achieve that goal, Moore pointed to titles like Viva Pinata which, while seriously underperforming at retail, remains a critical success and "will sell for years," says Moore. Exclusive first-party content, like Gears of War and Halo 3, coupled with third-party exclusives like BioShock and Splinter Cell Convictions will continue to push hardware sales, while ancillary services like Xbox Live and microtransactions will continue to add to revenues. While Microsoft is on the road to profitability, they have a ways to go to catch up with Nintendo whose latest financial report cited a 43% profit increase. It's a very long road, you see?
Read -- Microsoft Reports Record Revenue
Read -- Microsoft profit down, beats estimates (AP)
