Post by Socom on Oct 29, 2005 16:36:09 GMT -5
Microsoft Financials Feeling Perky
Xbox 360 is expected to bolster earnings into the new year.
by David Adams
October 28, 2005 - This week Microsoft released first quarter earnings for the period ended September 30, 2005, showing revenue of $9.74 billion, 6% up from the $9.19 billion reported last year. The company reports net income of $3.14 billion, compared to $2.53 billion reported for Q1 last year.
The company's Home and Entertainment division, home of the Xbox, stumbled on the eve of Xbox 360's arrival, showing $525 million in revenue and a $141 million net loss -- compared to $634 million in revenue and a $138 net loss in Q1 last year.
Of course, the division has allocated resources to the imminent X360 launch. The next-generation console should make up for any short-term losses, or so Microsoft hopes: the company expects to ship between 4.5 and 5.5 million Xbox 360s in fiscal 2006, leading to Home and Entertainment growth in excess of 50% for the fiscal year and between 26% and 32% in the second quarter from the prior year.
That's an optimistic forecast for the division, showing Microsoft's spirits are up for its new console, which arrives November 22. The company's strategy this time out -- from the hardware design to the launch date to the aggressive courtship of developers -- shows Microsoft isn't letting Sony breathe easy; Redmond's ready for a fight.
Credit: IGN
Xbox 360 is expected to bolster earnings into the new year.
by David Adams
October 28, 2005 - This week Microsoft released first quarter earnings for the period ended September 30, 2005, showing revenue of $9.74 billion, 6% up from the $9.19 billion reported last year. The company reports net income of $3.14 billion, compared to $2.53 billion reported for Q1 last year.
The company's Home and Entertainment division, home of the Xbox, stumbled on the eve of Xbox 360's arrival, showing $525 million in revenue and a $141 million net loss -- compared to $634 million in revenue and a $138 net loss in Q1 last year.
Of course, the division has allocated resources to the imminent X360 launch. The next-generation console should make up for any short-term losses, or so Microsoft hopes: the company expects to ship between 4.5 and 5.5 million Xbox 360s in fiscal 2006, leading to Home and Entertainment growth in excess of 50% for the fiscal year and between 26% and 32% in the second quarter from the prior year.
That's an optimistic forecast for the division, showing Microsoft's spirits are up for its new console, which arrives November 22. The company's strategy this time out -- from the hardware design to the launch date to the aggressive courtship of developers -- shows Microsoft isn't letting Sony breathe easy; Redmond's ready for a fight.
Credit: IGN
