MS shifts 10.3m Xbox 360s in FY2010

By Wesley Yin-Poole Published 23 July, 2010

Makes lots of money.

Microsoft shipped 10.3 million Xbox 360 consoles during its fiscal year 2010, compared with 11.2 million Xbox 360 consoles during fiscal year 2009.

The total number of Xbox 360 consoles shipped is now 41.7 million.

The Xbox 360 platform, which includes the console itself, 360 games, Xbox Live and Xbox 360 accessories, as well as Zune, PC games, and online games and services, all form part of what's called the Entertainment and Devices Division of Microsoft, or EDD.

In total, EDD generated just over $8 billion in FY2010, which is almost exactly what it generated in 2009.

Profits wise, though, the division saw a huge year-over-year improvement, from $108 million to $679 million.

But money made from Xbox 360 and PC games decreased in 2010. Revenues from the Xbox 360 platform and PC game sales were "flat", Microsoft said last night during its financial call.

Xbox 360 platform and PC game revenue decreased $12 million, in fact. Microsoft blamed it on a reduction in Xbox 360 consoles sold and revenue per console. The figure was offset, however, by increased Xbox Live revenue.

Microsoft will be hoping, then, that the recently announced Xbox 360 250GB and 4GB models will pick things up. And then there's always motion sensing add-on Kinect, due out in November.

In the fourth quarter Xbox 360 platform and PC game revenue increased $228 million or 30 per cent, "primarily reflecting increased Xbox 360 consoles sold and increased Xbox Live revenue, partially offset by decreased revenue per console," Microsoft said.

It shipped 1.5 million Xbox 360 consoles during the fourth quarter, compared with 1.2 million during the same period last year. Xbox 360 console units were up 26 per cent and "growing faster than the overall market".

Xbox Live continues to be a tremendous asset, Microsoft said, with over 25 million members. Interestingly, annual Xbox Live digital marketplace revenue exceeded subscription revenue.

EDD revenue for the fourth quarter included a favourable foreign currency exchange impact of $52 million. Lucky Microsoft.

It's not all clinking champagne glasses, however. In the fourth quarter EDD operating loss increased 22 per cent year-over-year to $172 million. Sales, however, jumped 27 per cent to $1.6 billion. Charges resulting from the discontinuation of the KIN phone hit hard – cost of revenue increased $251 million, or 38 per cent. Royalty costs resulting from increased Xbox Live digital marketplace third-party content sales didn't help either. Neither did sales and marketing expenses, which increased $73 million, or 29 per cent. Cirque du Soleil, anyone?

Research and development expenses increased $48 million, or 10 per cent, "primarily reflecting increased third-party development and programming costs and increased headcount-related expenses". Looking ahead, Microsoft said it expects EDD revenue growth in the "mid teens".

Picture of Wesley.

About Wesley Yin-Poole

Wesley is Eurogamer's news editor. He likes news, interviews, and more news. He also likes Street Fighter more than anyone can get him to shut up about it.

Read more articles from Wesley by visiting the Wesley Yin-Poole archive page.

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Comments (24) Latest comment 2 years ago

Comments for this article are now closed, but please feel free to continue chatting on the forum!

  • itsfuzzy #1 2 years ago

    Enough money to offset 5 years of losses?

  • NimbusTLD #2 2 years ago

    Surely it's 10 years of losses. And not yet.

  • MaoZedong #3 2 years ago

    Post deleted at 09:40:08 17-12-2011

  • coolbritannia #4 2 years ago

    They stopped making a loss years ago. Also, I'm buying Kinect. I think it looks ok and my gf will definitely enjoy it. Move also looks good, better pricing, but nowhere near as hi tech as Kinect. And I think that's where it'll sell, as a cool gadget rather than as an enhancement to gaming.

  • Raznilof #5 2 years ago

    really...who cares about this but investors?

    This doesn't translates down to any of us controller wielding jockey's.

    As long as the big three are in business, it's good for gamers. When one of them becomes either too big or too small, it's bad for gamers. Same thing with those numbers, you're either a fan in need of mud to throw with. Those numbers are either great or horrible and you can start making your comparisons or jumping to simple conclusions.

    ...or...

    You are a gamer and don't get overly excited unless they announce that they will stop making games for your platform(s).

  • JahB #6 2 years ago

    I care about sales numbers, simply because the size of the install base is usually proportional to the size and quality of the catalogue.

    Look at the ps2 games that came out once it hit 50 mil, lots of great stuff.

  • NotSoSlim #7 2 years ago

    The title states "shifts" which implies sold yet article states "shipped"

    So I am guessing this is shipped to retailers?

  • NotSoSlim #8 2 years ago

    @coolbritania

    If it sells as a cool gadget then MS has failed to get there message across as they say it's the next stage of gaming.

    Only time will tell tho :o)

  • Haerger #9 2 years ago

    Q1 Q2 Q3 Q4 FY

    PS2 1.9 2.1 1.7 ? 5.7

    360 2.1 5.2 1.5 1.5 10.3

    PS3 3.2 6.5 2.2 ? 11.9

    Wii 3.5 11.3 3.5 ? 18.3

    PS3 outsells Xbox 360 worldwide which isn't surprising.

  • Red_Bool #10 2 years ago

    subtitle reminded me of this:
    http://www.youtube.com/watch?v=8MyZnZ_e6...

  • Bealsy #11 2 years ago

    Considering how old the 360 is now, its doing a pretty good job of keeping sales up.

    /waits for "BUT EVERYONEZ BUYING 4 tOO RePLACE THEYRE OLD WUNS INNIT PS£WIN"

  • The-Bodybuilder #12 2 years ago

    simply because the size of the install base is usually proportional to the size and quality of the catalogue.

    My dreamcast says you're not completely accurate.

  • RobTheBuilder #13 2 years ago

    You would expect sales of PS3 to be higher as there are more 360's out there (if you exclude Japan from the figures then 360 is still ahead), but it will be interesting to see the impact that the new 360 and Kinect/Move have on these figures.

    People saying Move is much cheaper than Kinect are clearly only talking about single player...

  • NotSoSlim #14 2 years ago

    @rob

    As Kinect can only do two players, Move and Kinect are equally priced here in the UK, just expect more Kinect coverage.

    In the US Kinect is cheaper and no fanboy can spin that :o)

  • RobTheBuilder #15 2 years ago

    @NotsoSlim Ah yes, I was still thinking it was 4 player. The US cheaper price happens on everything though, I've stopped worrying about that unless it's extortionate (like the original Rock Band).

    But as you say, 2 players on Move = roughly the same as 2 players on Kinect; so while it isn't as cheap as it should be, to say Move is waaaay cheaper is a bit of a misnomer.

  • miiiguel #16 2 years ago

    It's funny we only hear about MaoZedong in documentaries about dictators and articles about 360.

  • MaoZedong #17 2 years ago

    Post deleted at 09:40:08 17-12-2011

  • miiiguel #18 2 years ago

    It is funny. I know Mao pretty well, I wrote a paper about Mao, and believe me it funny to compare the real Mao with a persona obsessed with the success/failure of the 360.

    Anyway, regarding the news, after half this generation it's very interestung to see what has happened, comparing with last gen.
    Edited by miiiguel at 23/07/10 @ 10:18

  • mcmonkeyplc #19 2 years ago

    Sorry to be the one to do this, but Entertainment & Devices DIvision should surely be shortened to EDD not EED and Division is spelt wrong, you've got it down as "Devision".

  • Gammerz #20 2 years ago

    What percentage of those xboxes were replacements for faulty ones where the warranty had expired or wasn't covered (e.g. DVD failure)?
    Edited by Gammerz at 23/07/10 @ 12:47

  • oreillymj #21 2 years ago

    Looks like a handheld is on the way.

    [link url=http://www.theregister.co.uk/2010/07/23/microsoft_arm/
    ]http://www.theregister.co.uk/2010/07/23/...[/link]

    I don't think ARM chips would be any faster then the existing 3 core CPU in a 360, so it's more likely a lower power device is being developed.

  • TAPNGO #22 2 years ago

    What percentage of those xboxes were replacements for faulty ones where the warranty had expired or wasn't covered (e.g. DVD failure)?

    must be low since 90% of all triple A games sell better on the 360, if going by the logic of the fanboys, this should not happen.
    Halo 3 has outsold Resistance 1 + 2, Uncharted 1+2, Killzone 2 and God of War III COMBINED. how the hell is this possible with so many broken xboxes.

  • mossychops001 #23 2 years ago

    Post deleted at 11:49:27 04-05-2012

  • ronuds #24 2 years ago

    Why are the PS3 fanboys crowing about how much MS has lost on the XBOX since inception?

    The PS3 has wiped out any and all profits Sony has ever made on video games by billions. They might be further in the whole on the VG business than MS by now! :o