Microsoft reveals year-end financials

[pApA SmerF01]

Microsoft Reveals Year-End Financials[xbox] [xbox360]
Microsoft also revealed its latest financial specs, though in its case they pertain to its third fiscal quarter, which ended March 31, 2006. The company saw quarterly profits of $2.98B on $10.9B in revenue, a 13% increase year over year. Revenue did not quite meet estimates, due in part to the continuing costly Xbox 360 launch. Related expenses, including the significant loss taken on the sale of each console, meant Microsoft's newly restructured Home and Entertainment division saw $1.06B in revenue but a loss of $388M for the quarter, up a striking 122% year over year. In addition to 360-related expenses, tapering sales of Halo 2 were actually a big contributor to the rising loss. Revenue in fiscal year 2005 saw a big boost from Bungie's blockbuster, but sales have of course slowed recent months, contributing less to Microsoft's bottom line. Microsoft expects the trend of increased loss to continue in the near future, but noted that 360 should see positive profit margins within its life cycle.

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[Jay2984]

Probably not as good as a lot of investors wouldve liked to have seen but if Halo3 is announced at E3 and nothing huge about the PS3 is released, sales of 360's will dramatically increase and next years revenue will look better. Thats if MS can start making up the losses with selling more accessories but we know that more 360s sold equals more accessories and games being sold. PLus with the release of Vista later this year will defintely increase MS' profits.

[taylor410]

halo 3 will make or break ms's predictions for the year end.

[Sharky]

Originally Posted by taylor410

halo 3 will make or break ms's predictions for the year end.

Actually the timeline on Vista and their next Office Suite are going to be the real deal-breakers! But Halo 3 would certainly help...