Xbox division posts 165 million USD Q1 profit despite 12pct 360 sales drop

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Xbox division posts 165 million USD Q1 profit despite 12pct 360 sales drop

April 23rd, 2010, 14:06 Posted By: wraggster

Microsoft's Entertainment and Devices division had a less spectacular quarter, with revenues rising just 2 percent year-over-year to $1.67 billion in revenue. The division saw operating income rise from a loss of $41 million in January-March 2009 to $165 million during the same period this year.

The profit was in large part due to a $62 million windfall resulting from foreign currency exchange rates. Microsoft also called out increased revenue from Xbox Live as a factor, as well as a $199 million decrease in the cost of revenue "resulting primarily from lower Xbox 360 console costs." The drop in manufacturing costs for the console will likely further fuel speculation that Microsoft has developed an Xbox 360 Slim, which would require fewer materials to make and cost less to ship.

That said, both Xbox 360 hardware and software revenues were down during the quarter. Microsoft only sold 1.5 million consoles from January to March, down 12 percent from 1.7 million during the same period the year prior.

http://www.gamespot.com/news/6259815...s&subj=6259815

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