Microsoft Announces Increased Revenue, Strong Xbox Sales

Microsoft Corp. has announced its financial results for the quarter ended June 30, 2005, and revealed revenue of $10.16 billion over the entire company, a 9% increase over the results in the same period of the prior year. Operating income for the fourth quarter was $2.99 billion, compared to $3.13 billion in the prior year, but this includes a reduction of $756 million related to legal charges for antitrust-related claims, so the fourth-quarter profit, taking this and other factors into account, was $3.7 billion, around 37% higher than the previous year. The specific results regarding Microsoft's Xbox game console hardware and software were reasonably positive - the company posted a 22% revenue growth for the Home and Entertainment division, particularly referencing "strong results across all aspects of the Xbox business" for this increase. Microsoft also revealed that, in the 2005 fiscal year, the Home and Entertainment division shipped a record number of both Xbox consoles and software, and also referenced the recently announced two million Xbox Live subscriber milestone as a high point, alongside the unveiling of the Xbox 360, due out in North America this November. However, the loss for the quarter for the Home and Entertainment division was $179 million, down from $340 million in the same quarter of the previous year, but nonetheless notable. Overall, the division lost $391 million for the year ended June 30 2005, compared to a gigantic $1.22 billion for the year ended June 30 2004. Nonetheless, given that the profits of Microsoft's Windows and Office-related division were $2.02 billion each for the latest quarter alone, the company is obviously still in a position to continue to invest in Xbox hardware and software as it strives to push the Xbox 360 as the leading next-generation contender.