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Xbox Arm of Microsoft Posts Profit

GameDailyBiz is reporting that Microsoft has posted a rare profit for their games business. As you might imagine, the good news is courtesy of high game and console sales thanks to Halo 3. "[Entertainment Division] revenue increased primarily due to increased Xbox 360 console and game sales. Xbox and PC game revenue increased $895 million or 148% as a result of increased Xbox 360 console sales, video game sales led by Halo 3, and Xbox 360 accessory sales. We shipped 1.8 million Xbox 360 consoles in the current quarter as compared to 0.9 million consoles in the first quarter of fiscal year 2007. Halo 3 was launched in September 2007 and generated approximately $330 million of revenue during the quarter."

12 of 81 comments (clear)

  1. Halo by king-manic · · Score: 4, Insightful

    Every Quarter Halo is released is profitable for that quarter. Still not profitable that year or over all yet. Maybe in 2008.

    --
    "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
    1. Re:Halo by Grandiloquence · · Score: 4, Funny

      Microsoft logic dictates that a new Halo will henceforth be released EVERY quarter! Also, the next Halo will have Master Chief accompanied by his newest companion, Clippy. "It looks like you're trying to kill an Elite! Would you like help using the plasma rifle?"

    2. Re:Halo by kurokaze · · Score: 2, Informative

      the RROD warranty was accounted for in the last quarter. It has no basis on the results for this quarter.

      I'm not going to speculate as to whether or not the console itself is making money, since I don't have a clue (and neither does anyone else here for that matter)

  2. Holiday debt by tepples · · Score: 3, Interesting

    That was MS's one big console seller. Sony has two big ones coming at some point (FF:XIII and MGS:4). Nintendo has a few (Mario Galaxy, Super Smash Brothers: Brawl, Mario Kart, and I'm sure others). Trouble is that "console seller" games published in North America between December 26 and June 25 don't tend to move a lot of consoles because a lot of potential customers are knee-deep in holiday debt. This time frame happens to include both Brawl and Mario Kart.
  3. Re:Now what? by Lemental · · Score: 2, Interesting

    Two words.

    Mass Effect

    That will sell more consoles as well. PS3 owners who have been coming into my store want it ported over. Maybe it will be since EA now holds Bioware, but, until then XBOX has it locked.

  4. Re:Now what? by ObiWanStevobi · · Score: 3, Insightful

    First of all, I doubt Halo 3 is done moving consoles. As long as Sony fans are left waiting for a Halo killer, there will be converts.

    Second, their overall collection of very good games (but not real console movers) is far outpacing Sony. The best game Sony will have before spring 2008 is the Orange Box, which Xbox already has. Their next best game, Oblivion (IMO), Xbox had early as well. Resistance was pretty good, but on Xbox you have Gears Of War beating it out. Sony needs more than one or two good games to catch up. Xbox box has (will have by years end) many solid unanswered games: Dead Rising, Forza, Ace Combat 6, Bioshock, Mass Effect, Saints Row, Perfect Dark Zero, Ghost Recon Advanced Warfighter, etc.

    I do think Xbox made a huge mistake in promoting Halo over their overall line-up. A Halo killer will come along eventually. But where their biggest lead over Sony will be is overall line-up (and online service). To their credit, they do have some exclusive RPGs meant to combat FF, but they just don't do it. They might, however, be enough to lure someone that was waiting on that single PS3 game and liked some of Xbox's other titles.

  5. Re:Now what? by Pojut · · Score: 2, Informative

    Mass Effect...Fable 2...The next Ninja Gaiden game...Marvel Universe Online...Splinter Cell: Conviction...Too Human...Warhammer: Battle March...

    There are plenty more exclusives on the way for people to get excited about. Mass Effect, Fable 2, and Ninja Gaiden 2 will likely sell like hotcakes. Splinter Cell: Conviction looks to be absolutely amazing. Assassin's Creed, while not exclusive, will likely help shift some more units as well.

  6. And that hot seller, the Zune by ubikkibu · · Score: 4, Funny

    "For the remainder of fiscal year 2008, we expect [EDD] revenue to increase due to the increased sales of Xbox 360 consoles and related games, accessories, and services, and sales of Zune products,"

    Now I don't believe anything said in this story.

  7. Re:Now what? by provigilman · · Score: 2, Funny
    http://en.wikipedia.org/wiki/List_of_best-selling_video_games/

    You know, actually checking your facts first might help. First off, you can't compare Halo, a 3 game franchise, to the likes of Mario (11 games in the SMB series proper, not counting the innumerable spinoffs and special appearances). Secondly, you're a bit off base in terms of your numbers.

    For example, Halo 2 has sold 8 million copies. That is the most of any shooter game, save Goldeney for N64...which also sold 8 million copies. It's also the #22 franchise (inluding PC) of all time, which impressive considering it's up against the likes of Final Fantasy and Street Fighter. It also beat out the likes of Metal Gear, Mortal Combat, Warcraft, Diablo, etc.. In fact, taking out some of the PC games like Lineage, the Sims and Command and Conquer would put it in the top 20 console franchises of all time.

    So considering that it's technically in the top 20 console franchises of all time, and Halo 2 is tied with N64's Goldeneye as the most popular shooter ever, is it really so crazy to look for a Halo killer? Not if you're planning on making an FPS it's not...

    --
    "Life's short and hard, like a body building elf." -- The Bloodhound Gang
  8. XBox Live is the killer app by sneakyimp · · Score: 5, Insightful

    Given the popularity of WoW and Counterstrike type games, my thinking is that on-line games are the killer app. Human players are *so much more interesting* than AI. Halo just offers a taste of that. I believe Microsoft is well-positioned in this regard relative to Nintendo and Sony due to XBox Live. PS3 is pretty much tanking all around as far as I can tell. Also, isn't Grand Theft Auto one of the most serious console-movers in history? According to Wikipedia, M$ is a step ahead of sony there and there is not GTA planned for the Wii is there? "It has been confirmed that episodic content will be released on the Xbox 360 exclusively. Microsoft officially announced a strategic alliance with Rockstar Games over the rights to episodic content through their Xbox Live service at their X06 event. An announcement regarding the release of episodic content for the PS3, however, is still expected, whilst fans speculate that each console will receive its own exclusive episodic content via their respective download services (Xbox Live for the Xbox 360 and PlayStation Network for the PlayStation 3)."

    1. Re:XBox Live is the killer app by revengebomber · · Score: 2, Funny

      Human players are *so much more interesting* than AI. Halo just offers a taste of that. So they just invent an AI that insults your sexuality and whines constantly. Problem solved.
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  9. Re:Bzzzt. by absoluteflatness · · Score: 2

    Not really a fair comparison though. If the PS3's got the next edition of the game that's "not a major improvement " (so, a minor improvement), I'm not sure you can meaningfully point to the older edition as an Xbox exclusive. It's true, but it's still a stretch.

    Of course, the general point of the 360 crushing the PS3 right now on exclusives is true, so quibbling over one title is pretty irrelevant.