Microsoft's Xbox Division Shows Signs of Maturing

Microsoft (MSFT) Xbox Division's Sales Increase 68%

Microsoft's entertainment division, which includes the Xbox, Games for Windows and Zune, posted a profit as sales increased by 85% during Q3. This is the third consecutive quarter that the division has posted a profit. Before this fiscal year, the division had only reported a profit during the quarter that Halo 2 shipped.

For the three months ending March 31st, division posted sales of $1.58 billion compared to $936 million during the same period a year ago, an increase of 68%. Xbox 360 and PC revenues contributed $418 million to this amount. It posted profits of $39 million, compared to a loss of $324 million a year ago. The company shipped 1.3 million Xbox 360s during the quarter.

For the nine months ending March 31st, the division reported sales of $6.57 billion, up from $4.92 a year ago. It posted profits of $614 million, compared to a loss of $746 million a year ago.

Microsoft, overall, had sales of $14.45 billion.

Disclosure: None

Comments

[Tom B]

That's astounding. 614 M profit after sinking 20 B in this division. I doubt they can sustain it, though. Can you break down the cash flow in more detail? Is Halo 3 still driving the numbers?