IBM Earnings Increase In Third Quarter

Representatives from tech giant IBM have reported the company’s third quarter financial results for the period ended September 30th. During this time, the company reported a profit of $1.52 billion, although total revenue was down 8 percent to $21.5 billion. If the impact of the company’s divested PC business is removed from the calculations, then revenues could be considered to have risen by 4 percent, showing an overall positive set of results for the company. Particularly relevant to the video game market, IBM chairman and CEO Samuel J. Palmisano specifically mentioned the company’s interaction in the next generation of game consoles as a promising area of expansion for IBM, commenting: "IBM is well positioned in our microelectronics business as the game console industry moves to its next generation of products. Our clients are leveraging IBM's unique ability to apply innovative, high-value skills and solutions to transform their businesses and industries." The company has worked with Sony and Toshiba to co-produce the Cell technology being used in the PlayStation 3, and has provided the PowerPC-based CPU multi-core processor architecture for Microsoft's forthcoming Xbox 360. In addition, IBM has also worked with Nintendo to create the CPU, codenamed Broadway, for the forthcoming Revolution console, meaning that the firm will have a share in revenue for all three next-gen consoles. The market has responded relatively positively to IBM's financial results, especially after worse results earlier this year that forced the tech giant to announce 14,500 job cuts, sending the firm's shares up $1.40, or nearly 2%, to $83.99 in heavy mid-day trading on the New York Stock Exchange.