Xbox sales jump, but so do expenses

[OuFtb]

Today, Microsoft Corp released its quarterly financial statement to Wall Street and investors. The company's eight divisions reported a profit of $1.32 billion for the quarter ending March 31, substantially off the $2.14 billion profit the company reported for same quarter a year ago. The filing attributes the disparity to a stock compensation expense of $501 million and a $1.89 billion charge that resulted from Microsoft's recent settlement with Sun Microsystems, Inc.

Of greatest interest to the game community, however, are the results of the Home and Entertainment division, the division that the Xbox and game sales fall under. For the quarter, Microsoft claims Xbox sales were 30 percent higher this quarter compared to a year earlier--the increase due in part to the recent price drop, according to Microsoft. In addition, and in numbers that conform to earlier projections, the company maintains that it expects to have sold between 14.5 and 16 million consoles by the end of June, and that it still expects to have a million Xbox Live subscribers by that time as well.

Home and Entertainment includes the Xbox, PC games, and consumer software and hardware, according to the company. It said Xbox revenue increased $81 million or 35 percent from the prior year’s third quarter, adding that $78 million of the division's total revenue was related to higher volume of Xbox software sales, and $39 million of that revenue was due to higher console sales.

Home and Entertainment division revenue for the quarter was $530 million, compared to $453 million a year ago. However, when figuring in operating expenses, overall, the Xbox division reported a loss of $209 million. Microsoft defines operating expenses as "manufacturing and distribution costs for products and programs sold, operation costs related to product support service centers and product distribution centers, costs incurred to support and maintain Internet-based products and services, and costs associated with the delivery of consulting services."

The company still has a vast war chest lined with cash. At the end of the quarter, the tally of cash stood at $56 billion, $3 billion more than it reported just three months earlier.

http://www.gamespot.com/news/2004/04...s_6094353.html

[Chaotic]

56 billon... 3 billon gained in 1 quarter That's insanity..

[Chewy]

Wonder if Bill would float me a loan for a mear $500,000?

I should try.

[SoundX]

I remember someone working out that Bill could give everyone in the US a Xbox or something. That's damn insane.

[Xorg]

I remember someone working out that Bill could give everyone in the US a Xbox or something. That's damn insane.

It was money, not an xbox, but I forget how much

[BinaryXtreme]

Boo hoo Bill. I'm all shook up about your loss.

[CRAYMAN]

It was money, not an xbox, but I forget how much

It was far more than an Xbox.

I wish someone would do the math and share it with the rest of us.

[Trento52]

well lets think 6 billion people in the world and he could give how much to each person. That seems more impressive IMO.

[Ninjermy]

this question about how much everyone wud get is simple right? hes got 50 billion (estimate) divided by 250 million people. that equals 200 dollars american for every american citizen. :O

psst bill wanna lend me 20 bucks!?

[CRAYMAN]

this question about how much everyone wud get is simple right? hes got 50 billion (estimate) divided by 250 million people. that equals 200 dollars american for every american citizen. :O

psst bill wanna lend me 20 bucks!?

COOL!