Microsoft Xbox Division Sees $426m Profit In Fiscal 2008

Microsoft has announced its fourth quarter and full fiscal year results, showing recovery from the $1.1 billion loss in Xbox 360 warranty charges in 2007, as its Xbox division sees first-ever yearly profits - of $426 million, up from its nearly $2 billion total loss the year prior. Xbox 360 hardware and software and PC game sales were the primary contributor to the Entertainment & Devices division's fourth quarter sales rising 37 percent year over year to $1.5 billion. Yearly sales rose 34 percent to $8.1 billion. Fourth quarter losses were $188 million, down sharply from the $1.2 billion the year prior that resulted from the company extending the Xbox 360 warranty from one to three years, after 'red ring' errors persisted across numerous consoles. The company says it shipped 1.3 million Xbox 360 consoles during the fourth quarter ending June 30th, 2008, up from 0.7 million the year prior. Yearly shipments were also up, with 8.7 million consoles sold in fiscal 2008 (the year to June 30th, 2008), compared to 6.6 million the year prior. Overall, Microsoft took in sales of $15.8 billion in its fourth quarter, up 18 percent, and $4.3 billion in profit, with sales also up 18 percent for the full year to $60.4 billion - with $17.7 billion profit. Said COO Kevin Turner, "Delivering $60 billion in annual revenue is an outstanding accomplishment and a testament to the powerful combination of great technology solutions and strong execution by our partners and global sales and marketing teams. The outlook for fiscal year 2009 is positive given the breadth of our impressive technology portfolio and the expanding collection of online services we are bringing to market."