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Microsoft game revenues down three percent

Latest financial results show declines
Microsoft has reported its financial results for the fiscal year ended June 30, 2009, showing overall declines in revenue, operating and net income which extended to its Entertainment and Devices Division (EDD).

Annual company revenue came in at $58.44 billion, down three per cent from the prior year. Operating income and net income for the year were $20.36 billion and $14.57 billion, representing declines of nine per cent and eight percent.

Yearly revenues at Microsoft's EDD, which covers the Xbox 360 and Zune platforms, as well as PC and online games, decreased across most lines of business.

Xbox 360 platform and PC game revenues fell $161 million, or three per cent, "primarily as a result of decreased revenue per Xbox 360 console due to price reductions during the past 12 months, partially offset by increased Xbox 360 console sales and increased Xbox Live revenue." The company shipped 11.2 million Xbox 360 consoles during fiscal year, compared with 8.7 million in fiscal year 2008.

For the fourth quarter, Xbox 360 platform and PC game revenue fell $110 million, or 12 per cent. The company shipped 1.2 million Xbox 360 consoles during the period, compared with 1.3 million in the fourth quarter of fiscal year 2008.

Article supplied by Edge-Online

computerandvideogames.com
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Posted by BenJy!
Oh no!

Quick, everyone to the bomb shelter!

D:
Posted by Mark240473
Doomed.
Posted by Black Mantis
M$ LOL! :wink:
Posted by WHERESMYMONKEY
faaaaaaaaaaannnnnnnnnnnnbbbbbbbboooooooooooooyyyyyyyyyssssssssssssssssss!!!!!

The sirens wailing quick, before the trolls start chucking rocks!
Posted by wildhook2
Well, it is their fault - Xbox 360 is too cheap.


Anyway, we are in very deep recession it's bound to happen.
Posted by monty_79
Only $58.44 billion? Is that all they made? Ha ha. Well, there hasn't been that many games I have wanted on 360 released over the past 4 months or so, with the exception of SF4. Looking forward to September and the end of the year when we get ME2 and L4d2.

Roll on Q4!
Posted by cykosis
Great news. Keep it up!
Posted by StonecoldMC
What does this actually mean?

MS revenues down = the 360 is too cheap

Sony revenues down = the PS3 is to ...

Do you see where im going here?
Posted by ewko117
I see where your going,
buy a wii, ninty's profits up !!

I wonder how much of this decrease is due to pc's diminishing sales??
Posted by AJB123644
To be fair though the reason why they lost revenue for the PC was because they shit all over us PC gamers. Come on Microsoft get your act together and treat us as well as you treat your 360 gamers!
Posted by lmimmfn
Exactly, but they dont want gamers to be using PC's to game, much better for them if they can convert PC gamers to 360 gamers, monthly subscription, royalties on every game sold, profit on extra 360 hardware sold rather than getting pretty much 0 from a PC gamer( OS is debatable as chances are they'd still sell that OS as most households have a pc anyway ).

M$ are the single biggest thorn in the side of PC gaming, preventing publishers releasing PC versions or delaying them for 6months+ after 360 launch or making Games For Windows deliberately crap and throwing cash at developers to use GFWL making the PC experience of games that use it woeful
Posted by AJB123644
Exactly but we pc gamers only stick with their OS because it is the only one currently capable of playing all games. What Microsoft do not realise however is that with companies like Valve, indie developers, EA and all other big companies around still supporting the PC and treating it as an entirely independant platform we PC gamers will not be switching anytime soon. As such this means that they are losing revenue and all because they are being so stuck up at the minute.

If they can change things round which I think in fairness they could easily do then they will get more revenue and we will all be happy.

What Microsoft do not realise however is that with companies like Google bringing out a new OS which albeit is going to be linux based they need to get their act together. With Google potentially releasing a linux based system they could see it as a prototype and if proven a success create a fully fledged OS. After all what is stopping them? Nothing, people want ease of access and what better than a company like Google to create a easy and perfect gaming OS for the gamer? This is what Microsoft need to look out for because soon as one company starts to neglect an area of its customer base then that is when another company picks up the Niche market...
Posted by The_KFD_Case
MS has pulled some punches and thrown dirt in to the eyes of competitors and the consuming public numerous times, no doubt. In regards to this article however, it does seem that a substantial part of the decrease in the Xbox 360 market at least is due to discounted prices. The gamble being, I suspect, that once you have the console you are more inclined to buy games for it thus increasing retention rates and long term profits for MS on that platform.

In regards to MS's OS, I wouldn't touch Vista with a 10 foot pole but with the excellent initial pre-order discount for the Eurpoean "upgrade" of Windows 7 (which is actually the full version thanks to an EU court ruling,) I got it for just under 45 quid excl. VAT and transportation to the country I live in. Total cost: 52.00 quid or so. In my opinion the best chance any of the opposing OS'es had was with Vista which was poorly received. I fully expect Windows 7 to squash and stamp out the emerging fires of resistance that Vista inspired. Love 'em or hate 'em, MS isn't run by fools and they do seem to learn from many of their mistakes. Personally I'm quite impressed with their customer support and service; this is especially true compared to a number of other companies.
Posted by AJB123644
Yeah your right KFD they just need to fundamentally change their attitude towards PC gamers and stop screwing us over. After all they could make a hell of a lot of money if they supported us. Although note how everything with Microsoft and PC gamers has changed since Gates semi left?
Posted by milewide
Obvious really, summer is always the dry season for games, Dont think I have bought a game for 3 months (@ full price anyway) I bought the old Call of dutys for Xbox as never played them originally to get my fix of FPS's action. Nothing good coming out either for another month either so it will only get worse, proabably for me.
Posted by chainsawgerbil
i generally only buy bargain preowned stuff because i like keeping them, when u can get something like dead space 6 months after release for 8 squids who can argue, bought streetfighter4 new but thats the only one out of about 15
microsoft hate people like me and the feelings mutual
Posted by The_KFD_Case
I buy the vast majority of my Xbox 360 games second hand as well. For the PC I'm willing to buy new (it's getting harder to ascertain which games come with limited activations, etc. ahead of time), and they are usually quite a bit cheaper than their console counter-parts which means they tend to remain in the "acceptable price vs. perceived value" zone where I'm concerned.
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