Xbox 360, $350 million in Halo: Reach sales bolster Microsoft bottom line

Sales of console up 38 percent year-over-year, cited as a factor in company's record first fiscal quarter performance; Entertainment and Devices Division sales tally $1.8 billion.

Microsoft has been banking on the motion-sensing Kinect peripheral to boost sales of the Xbox 360 this holiday season, but it turns out the system has had no trouble selling in advance of the camera system's November 4 launch. The company today announced a record performance for its first fiscal quarter (the three months ended September 30), with Xbox 360 sales up 38 percent year-over-year.

Microsoft's revenues Reach-ed for the stars.

The Entertainment and Devices division, which handles Microsoft's gaming business, as well as projects like the Zune and ill-fated Kin phone, posted nearly $1.8 billion in sales. Microsoft claims that number is up 27 percent year-over-year, but only since it has "recast" previous results "to conform to the way [Microsoft] internally managed and monitored segment performance during the current fiscal year." In last year's first fiscal quarter results, Microsoft reported Entertainment and Devices division revenues of nearly $1.9 billion, essentially flat from the prior year.

The Xbox division's operating profits were also affected by the aforementioned recasting. For the recently concluded quarter, Microsoft posted a divisional operating profit of $382 million, claiming that was up from the previous year's $260 million operating profit. The original number Microsoft reported for its first quarter last year was $312 million.

Companywide, Microsoft touted its all-time best first fiscal quarter performance. Every business unit in the company showed sales growth, and revenues for the three months ended September 30 totaled $16.2 billion, up 25 percent from the prior year. Net income surged even more, jumping 51 percent to $5.41 billion.

Microsoft cited strong consumer demand for the Xbox 360 and its games, as well as Office 2010 and Windows 7, as contributing factors to the growth. While Microsoft didn't break down the numbers, it bears noting that the quarter saw the debut of Halo: Reach, which was credited with bringing in $200 million in sales in its first day on sale. According to the industry-tracking NPD Group, Halo: Reach was also the top game for the month of September, selling 3.3 million units at US retailers.

[UPDATE]: In a post-earnings conference call, Microsoft revealed that Halo: Reach had totaled approximately $350 million in revenues to date and helped drive strong growth in the Xbox Live service.

The company expects to retain its momentum with the help of Kinect. Microsoft is projecting roughly 30 percent year-over-year revenue growth for the current quarter, with a jump of about 20 percent for the full year ending June 30, 2011.

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145 comments
kevin8se7en
kevin8se7en

@Superyeti22 Halo: ODST only sold 5.7 million copies, because it was bundled with the 360 at one point, and had the Halo: Reach Beta on it. If it was a standalone game with no Beta, and wasn't ever bundled, it probably would have only sold something like 2.4 million copies similar to a game like PURE. Halo Wars didnt even crack 2 million and it wasn't a bad strategy game (not amazing either). The "Halo" name does mean something for sales, but not a huge amount. Halo: Reach was the 1st "real" halo game since Halo 3, and thats why its selling a lot. Not because it's bad... it's great.

ParisSun
ParisSun

True, but I'm not a fangirl of the show. I just watch it. Try again, video game fanboy.

XanderZane
XanderZane

@kavadias1981 said: @XanderZane Hey Xander, no, I live in the UK. Seriously though, everyone I know has a Wii and/or a PS3 but nobody has a 360. My 2 brothers did once but one sold it because it was kept chewing up his games and breaking down and the other realised that it could "do nothing that his PS3 couldn't do better". Me, I had 300 quid and the choice of a 360 and PS3 back in winter 2008 and I went with the console that I felt would provide more in the long term. I don't regret my choice. ************************************************************ Most UK gamers favor the PS3. They're biase like that, so I'm not surprised. It's the total opposite in the U.S. as you can imagine. Even with the RROD, Americans love the XBox 360. I enjoy all 3 systems, which is why I own all of them. I care more about the games then the systems they are being played on. I have a lot of Wii, PS3 and 360 exclusives. I favor the 360 for my multiplats, but it doesn't mean I don't enjoy playing Uncharted 2, Modnation, SMG2, Wii Sports Resort or Valkyria Chronicles when I have time.

kavadias1981
kavadias1981

You know what it could be. I don't know all that many core gamers (apart from myself and my bro). After all, it tends to be mostly core gamers that own 360's. Why don't I know any of you in real life!!! (sobs into keyboard) Plus I'm in the UK aka Sonyland lol. Seriously though guys, dont think I'm having a pop at the 360, I have nothing against it. I just chose not to buy one is all.

godzillavskong
godzillavskong

@bennae66, I hear you, I have two 360s in my house, and working on a third. One of my sons wanted a 360 a few years back, but the other wanted a PS2. So now, realising how much my one son is playing online, he now wants his own 360. I let him play on his profile on mine, but that chews into my gaming time, so I plan on getting him either a PS3, or 360, he's trying to decide before christmas. My daughter currently has a PS3, which I play now and then. Gone are the days of having one console for the whole house, unless you want to give up your tv, or gaming time.lol

SuperYeti22
SuperYeti22

Not salying its bad, I love Halo, but the truth is: All these many people will keep buying Halo only for the name/logo. Remember ODST? That crap sold 5.7 million, and it was the most overhyped dissapointing peice of $#!% in '09. It was crap, yet it sold to all those people.

bennae66
bennae66

@kavadias1981 i have a ps3, 360 and a wii. my wii gathers dust and will be sold soon. the ps3 im waiting for decent 3d tvs (next gen tvs at least) and gran tourismo but the bulk of my gaming is done on 360. oh yeah, im playing starcraft 2 on pc also. i have 3 friends that own ps3's everyone else i know that games owns a 360. im in aussieland, not us or uk. plus in 3 houeholds (mine included) we have 2 xboxes per house. yes 2. they are permanently networked because the girls play xbox too now and they like borderlands coop etc, so we all had to fold and set them up with tvs and boxes. i guess in summary due to my circle of friends have contributed toward 4 ps3s, and 15+ xboxes. the failure rate on the xbox is higher, that is true. and yes ive upgraded my xbox to a slim cause i wanted it. i traded in my old 360 on a slim deal. noting the 360 has a failure rate of 13% more than a ps3, its interesting that 360 sales globally (excluding japan) are off the charts. its not 13% more sales, its a hell of alot more than that. as for the ps3, imagine how many less ps3s there would be in the world if japan diddnt use them? that is for you, baza66. im still waiting for a 3d tv that doesnt require those damn glasses and doesnt frame bleed so i can play wipeout hd in 3d.

baza66
baza66

At all those who repsonded. No, I am not a PS3 fanboy. I have both consoles and actually tend to play Xbox much more often (GT is JustCaulk). I was just pointing out the facts. If you look at the failure rate of Xbox360 compared to PS3, there's a big difference. And no, it's not the user. My 360 has always been in an open area, the same exact area the PS3 is in. The Xbox rate used to be about 50% but they have come down a lot in the last year or two. Don't believe me? Look at the article posted right here on this site. http://www.gamespot.com/news/6216691.html Xbox failure rate 23.7% compared to PS3 10% So calm down and look at the facts before you make judgement. Console replacement has a lot to do with sales figures.

blankzy01
blankzy01

Im neither a sony fanboy nor an xbox fanboy and i dont care what anyone else has to say or owns because whats counts is if ur having fun. Your opinions mean as much as the rest of this comment; fliba flabba gooba yabba...

kavadias1981
kavadias1981

@XanderZane Hey Xander, no, I live in the UK. Seriously though, everyone I know has a Wii and/or a PS3 but nobody has a 360. My 2 brothers did once but one sold it because it was kept chewing up his games and breaking down and the other realised that it could "do nothing that his PS3 couldn't do better". Me, I had 300 quid and the choice of a 360 and PS3 back in winter 2008 and I went with the console that I felt would provide more in the long term. I don't regret my choice.

kavadias1981
kavadias1981

This message was deleted by GS for "illegal activities": Where are all these 360 owners? I don't know anyone, except my cousin who only plays pirate games, that has one and anyone that did has sold them. It must be predominantly in the States. Erm... now to whoever decided to report that comment, and to you Gamespot, I don't see that it in any way promotes piracy, as believe me, I am very against it. All 250+ games in my collection are genuine. Perhaps you don't read my comments very often and haven't witnessed my anti-piracy rants on related reports. And secondly, I was pointing out a fact. I don't know anyone else, other than him, who owns a 360.

Son_Jazrin
Son_Jazrin

@godzillavskong You did that on purpose didn't you?

godzillavskong
godzillavskong

@Rohan233, why state that on this topic? Why not just go to System Wars and vent? Are you a engineer, are you sure the PS3 > 360? Never mind, don't answer that question. It will only feed the fire of fanboyism.

clqtte
clqtte

That's why Bill Gate is still Bill Gate.....

Rohan233
Rohan233

PS3 > 360 Hardware + Performance + Specs + Features nuff said...

ShadoweaverCode
ShadoweaverCode

Gooooo Xbox360!! Sony couldn't even come CLOSE to this with an exclusive release. =) This will make developers very happy to make 360 exclusives.

drokmore
drokmore

Lol they expect the kinect to keep it going, nope watch that bomb come xmas...

XanderZane
XanderZane

Microsoft may not have as many exclusives this year, but their 360 Slim and Kinect are going to keep their profits up until more quality exclusives come out next year. Next E3 should have a lot more 360 exclusives. Apparently Microsoft has some stuff behind close doors that they are keeping secret until E3. I hope they buyout EA. They'll have exclusive sports locked. lol!! Good job Microsoft. Keep it going. *********************************************************** @kavadias1981 Where are all these 360 owners? I don't know anyone, except my cousin who only plays pirate games, that has one and anyone that did has sold them. It must be predominantly in the States. -------------------------------------------------------------------------- You must live in Japan. That's the only place 360's don't really sell well . Yeah.. XBox 360 sell better then Wii and PS3 in USA, and it should.

shkar
shkar

If only my 2nd XBOX360 stayed alive to play this game ,,,,only then would I applause Microsoft.......But unfortunately these xbox360 s are so easy to RROD ........I hope the next XBOX would be more reliable........

digi-demon
digi-demon

@basa66 Takes more than a couple of RROD's to knock me down :D Getting a YLOD does sound mighty painfull though LOL

redskinStu
redskinStu

The only reason the console sales are up is because the warranty for defective Xbox 360's has run out, and like several of my friends (in fact, all of them) who own 360's, they were forced to buy another one because they had a substantial investment in software.

Shooterdown
Shooterdown

Me loves the Halo. Even though I suck at MP on Reach. Always good on the old ones. Terrible on this one. Think it is time to retire from online play.

buying1999
buying1999

Microsoft, kickin' butts and takein' names. OH and psp sales are down 50%. ROFL. but not to worry PS3HDWii is going pretty good and they've got the new pretty pink ball wand wavey around wii copy thingy.

JackHoleFace00
JackHoleFace00

This is awesome news and I don't even own a 360. I just love the fact that overall the industry is doing well... except for Nintendo, which in a way got what was coming to them: decreased sales due to an extreme lack of quality games. And before Wii fanboys cry "well it sold so many it was bound to slow down at some point!" Yeah, tell that to the PS2, which was number one in its generation from the time it launched and never let up to the GC or XB. The Wii sucks, face it. Long live awesome games.

yadiel110
yadiel110

everybody complains aout the xbox's hardware malfunction. i've had my xbox for 4 years and its going strong still. All u sony fanboys need to get out. Halo Reach. FTW!

Crumblet
Crumblet

So Microsoft's games division made 382 million this quarter, compared to Sony's 85 million and Nintendo's -24 million. Congrats, MS.

Span_Argoman
Span_Argoman

@GunGriffin Hahahaha, don't know where you get your figures from but CODMW2 has sold over 20 million worldwide, not 2 million. Reach on the other hand has sold some 5+ million copies. That's still quite a bit short of the 7+ million copies of MW2 sold on the Xbox 360 alone.

Rovelius
Rovelius

[This message was deleted at the request of a moderator or administrator]

GunGriffin
GunGriffin

Halo Reach as an exclusive to Xbox360 has already outsold CODMW2 and it's only on one platform, that has to stand for somthing. IE MW2 sold about 2 million world wide, and thats it. Respectable to be sure. Halo Reach has sold 3 million and is still going it sold 2 million week one, and now has sold another million to add the 3 in there, next thing you know Microsoft will tout reach as the top selling Xbox360 title of all time. I would not blame them for making new adds to boast about it. Next year XCOM, Gears of War 3, and Codename Kingdomes from Crytek hit Xbox360 as new exclusives plus the hardcore Kinect titles like Steal Battalion Heavy Armor, Project Draco (From the makers of Panzer Dragoon), PAC MAN sequale only on Kinect for Xbox360 from CAPCOM, and Kijma is going to hit hard with thier Kinect Exclusive Codename D, as well as the final Kinect Exclusive from Lucas Arts StarWars. Thats a heavy hitting hardcore line up for year 2 for Microsoft who as correctly sighted that Software sells hardware, just like Nintendo has done for years.

Trogeton
Trogeton

WELL DUH it's HALO and with the new online and everything else what else to expect?

chimpdaddy
chimpdaddy

Just to warn everyone kinetic is what Microsoft are really goin to push for, they have support for it in Windows 8 when that's bein supposingly bein released in 2 years, personally I think move and kinetic are just gimmicks, bring back true gameplay driven games

RitsukoEX
RitsukoEX

@Rovelius I'm not a dude. you HATER!

Dynamo11
Dynamo11

Is this a suprise to anyone? We all knew Reach would sell BIG

RitsukoEX
RitsukoEX

[This message was deleted at the request of a moderator or administrator]

CannedWorms
CannedWorms

@ParisSun Dude, not trollin', but Glee fangirls are worse than Sony fankids. Just sayin'.

monson21502
monson21502

sales are about to pick up for them.... i just odered a kinect slim bundle from walmart:D

ParisSun
ParisSun

Sony fanboys, go away. I've had my same 360 for 3 years now with no problems. No one needs to lie to you. If my 360 died, I wouldn't replace it. I'd buy a PS3. My son has a PS3, so I don't have to lie to support MS. I buy MS because it's better online and I like the controller and games more. You seem so desparate when you come to 360 boards and troll.

fanglang
fanglang

@CannedWorms Bravo sir. Well spoken.

sartnd
sartnd

@baza66 Yep, but they will go round and say "I'm still on my first 360". We all know that's a lie don't we? Many people can't live without a blender these days especially one that spins three hundred and sixty degrees (360)!

poelabwa
poelabwa

@baza66 Well i've had my 20g for a damn long time before upgrading to the 60g when it came out...wich i still have and working perfectly.I keep it in open space unlike a lot of people that squeeze it in a little,closed space.If you had 4 of them,the problem is not the console,it's the user =O

jgirard
jgirard

@baza66 I'm gonna guess you don't even owned a XBOX in your life and that you are just a PS fanboy trying to troll. My 360 60GB Pro is more than 4 years old and it runs perfectly.

fadersdream
fadersdream

@baza66 I'm still on my first 360 (halo 3 edition bought month before the game launch), and I'm on my first PS3... of course that may be because my PS3 is a shiny black paperweight that never gets turned on.

digi-demon
digi-demon

@Basa66 You mean like the same as the extra PS2's that people bought because of the inbuilt shoddy DVD drive/laser faults and the slim upgrade? Get real Puppet. IMO Nintendo need to sharpen their act up a bit - maybe 3DS will claw some sales back from these 'up-starts'... LOL

Gaz9000
Gaz9000

baza66 the vast majority of 360 owners that have had rrod sent their consoles away to get fixed, so if you went out and bought 4 new consoles then im sorry but you are a dumb ass! ,anyway rrod is so two years ago..all new consoles from the last two years have been fitted with the casper chip to stop rrod, i cant believe there is still people going on about rrod death like it is still a major problem..WAKE UP

thorughfire
thorughfire

[This message was deleted at the request of a moderator or administrator]

Incubus420
Incubus420

good stuff Everyone is doing well and it hasn't even hit the Holiday season. good for Sony and Microsoft for doing so well. This is the best industry in the world let's hope Apple buys Sony and makes it a lot better.