Microsoft's Xbox division posts first ever year-long profit

IDG News Service — Thu, 24 Jul 2008 11:49:32 -0400

NIntendo is king, but Microsoft's gaming division still managed to post its first ever year-long profits this week.

The latest NPD report may have been all Nintendo (again), but Microsoft had a milestone of its own worth crowing about this week: its gaming division posted its first full-year profit, ever.

It's quite an accomplishment for the division, which houses the Xbox team, especially considering the multi-year losses it has posted year-over-year before today.

As of June 30, the Xbox division on its own made Microsoft $426 million in operating profits, and $8.1 billion in total sales. According to the company's 4th quarter report, those numbers are up 34% from the year before, when it lost the company nearly $2 billion. Of course, the Entertainment and Devices division (which houses the Xbox team) as a whole still ended up losing $188 million for the year.

In its report, Microsoft said the gains were due to increased Xbox 360 sales, Halo 3, Xbox Live subscriptions and services, and accessory sales.

The Industry Standard - Microsoft's Xbox division posts first ever year-long profit - Comments

Microsoft's Xbox division posts first ever year-long profit