Microsoft turns profit on games. PS: Yay, Halo!
Well, they said it would happen and here we are: Microsoft's Entertainment and Devices division has turned a profit. Yes, the once festering black hole (or should that be a red hole) in Microsoft's side is now a gleaming diamond of success. Awful metaphors aside, the Entertainment and Devices division posted revenue of $1.929 billion and an operating income of $165 million. This is in comparison to $1.011 billion in revenue and a lost of $142 million during the same quarter last year. That's quite an improvement, one we're sure rests on the shoulders of a certain Spartan we know and love. It looks like Microsoft's money-bleeding gaming venture is finally off the ground. Now let's just see if they can keep it that way.
[Via Joystiq]
Reader Comments (Page 1 of 1)
Tony @ Oct 26th 2007 1:52PM
This is in spite of the major loss on the RROD warranty? I wonder how they would have done if that never happened. Even with Halo 3, the fact that it happened at all is kind of surprising... They've not made a profit in that division for years from what I remember.
They said they'd be able to do it, but I still was kind of pessimistic. 27% doesn't sound huge, but for a company that size... that's a lot of money. I wish I got a 27% increase in my revenue lol.
This also includes Zune, apparently. I wonder if that had any impact, although I really doubt it lol.
TORO @ Oct 26th 2007 1:53PM
I read this today, good for M$. And they said Master Chief couldn't push consoles, pff...I laugh at ur face
RandomHero @ Oct 26th 2007 1:55PM
I am prob thank you Microsoft with out you my life would be L A M E. see you in the halo 3
RandomHero4507
David W. @ Oct 26th 2007 2:10PM
keep it up! the better the profits, the more incentives they can give to sell consoles...the more consoles they sell the more games that come out...the more games that come out the more broke I am...wait... :( haha
erivera3 @ Oct 26th 2007 2:17PM
Halo 3 is all powerful. This is good news, means they have some faith in their console gaming now and won't stop with just the xbox 360! Can't wait for Xbox720!!!
dunnypop @ Oct 26th 2007 2:18PM
I hope M$ can really turn it up a notch with the momentum of Halo 3.
Unfortunately, I don't see the 1 million people online play Halo 3 each night :(
zlionsfan @ Oct 26th 2007 2:44PM
@1: The RROD warranty stuff was charged to a different quarter, wasn't it? If so, this report would be one reason to do that: charge the amount you expect to lose in one place so that subsequent quarters aren't affected by it.
maniac0201 @ Oct 26th 2007 2:52PM
MS stock up 8% today.
Arnie @ Oct 26th 2007 3:34PM
@1: The RROD loss was written off last quarter so the profit for this quarter was solely because of Halo 3. Of course the move to black is going to continue and hopefully they wont be too greedy and move some of that money back into the quality games and strengthen up their next years release schedule.(Fable 2 FTW!!)
Churchill @ Oct 26th 2007 4:26PM
Good now lower the hd prices. Please
lharmon @ Oct 26th 2007 4:32PM
Next money maker?
http://www.imdb.com/title/tt0464037/
Brian @ Oct 26th 2007 8:12PM
@ljarmon
I thought the Halo 3 movie was confirmed dead.
As much as I'd like to see it, it's probably better off this way. I'd hate to see Halo 3 get cinematically screwed, like Doom did.
GregA @ Oct 27th 2007 10:23PM
Every time someone talks Halo movie I think of the last game I was into that got a movie... Wing Commander. Just say no to movie title games and game titled movies!