Business & Finance
News
1/25/2007
07:16 PM
Connect Directly
RSS
E-Mail
50%
50%

Xbox Sales Strong Despite Heated Competition

The debuts of PlayStation 3 and Wii do not deter Microsoft's entertainment division from carving out $2.96 billion in revenue in the quarter.

Microsoft Xbox sales remained strong during the software maker's second fiscal quarter, despite Sony and Nintendo releasing upgrades of their rival game consoles.

The Xbox, along with sales of Microsoft's server software, lifted the company's revenues 6% during the quarter reported Thursday. Microsoft profits fell 28% because of the delay in shipping Windows Vista. The major upgrade of Microsoft's operating system, a cash cow along with the Office productivity suite, is scheduled to be released to retailers Jan. 30. Business versions of the software have been available since November.

Sony and Nintendo launched PlayStation 3 and Wii, respectively, in November, a year after Microsoft released Xbox 360. Despite strong demand for the rivals' products during the holiday season, Microsoft held its own.

Microsoft's entertainment division, which includes the Xbox console and software, generated $2.96 billion in revenue in the quarter, up 76% from the same period a year ago. Microsoft launched Xbox 360 in the fiscal second quarter in 2005, along with Microsoft SQL Server 2005, Visual Studio 2005 and Dynamics CRM 3.0. During the first year of sales, the products contributed more than $1 billion in sales.

For the quarter ended Dec. 31, 2006, Microsoft reported total revenues of $12.54 billion, and profits of $2.63 billion.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest September 23, 2014
Intrigued by the concept of a converged infrastructure but worry you lack the expertise to DIY? Dell, HP, IBM, VMware, and other vendors want to help.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.