Xbox 360 still bumming cash from Microsoft
Further cementing its image as Microsoft's loser brother who just needs a few bucks until "the band really takes off," the Entertainment and Devices Division of the company lost $315 million in the third fiscal quarter. Meanwhile, Microsoft's overall earnings rocketed up to $14.4 billion, a 32 percent jump from last year, thanks to the release of Vista.
Revenue for the EDD (Zune, Xbox 360, PC gaming, etc.) also took a hit, dropping from $1.2 billion this same time last year to $929 million, a 22 percent change. Microsoft blames the loss on lower Xbox 360 sales, which seems pretty logical, seeing as the console has some new competition this year. They estimate shipments of 500,000 consoles this quarter, compared with 1.7 million in Q3 2006. Revenue in games also dropped on the PC and 360 by 44 percent, or around $393 million.
On the plus side, EDD losses were an improvement from $402 million last year, which is sort of like earning $87 million! Or at least that's what EDD tells Mrs. Microsoft as she stands in the living room just out of the children's sight, nervously watching her husband peel off $20s. "I just need something to get me through the weekend. I'm seeing a new girl and I just want to show her a good time," EDD says, the faintest hint of whiskey on his breath. "I swear, Angela, I'm going to be profitable in fiscal '08, you'll see, you'll all see!"
Read -- Microsoft Reports Record Profits (press release)
Read -- Q3 Revenue at Xbox Division Falls on Slow 360 Sales (GameDaily BIZ)
