GamesBeat

Microsoft’s Xbox division down 11 percent for the second quarter

Microsoft reported its second quarter earnings for fiscal 2013 today. Most investor eyes will be on the Windows division, which posted $5.88 billion in revenue, but the company’s entertainment division also reported its numbers as well — a figure lower than a year ago that’s undoubtedly affected by the advanced age of the current generation of home video game consoles.

The company’s Xbox division posted $3.772 billion in revenue. That’s down 11 percent from the same three-month period in 2011 ($4.238 billion). Microsoft has $380 million in deferred revenue from video games alone, which would actually bring its adjusted revenue total to $4.152 billion.

The entertainment division produce an operating income of $596 million, which is actually up from $517 million in 2011.

Microsoft sold 5.9 million Xbox 360s in the quarter, and it also reported that Halo 4 is the best-selling game in that franchise’s history.

The recessed revenue figures speak to a console cycle that is on the decline. We’ve seen this trend in the monthly report from The NPD Group, which tracks the performance of the gaming industry at retail. Sales are down, but companies are still making money.

Overall, the software and hardware giant saw a 3 percent increase in revenue from $20.885 billion in 2011 to $21.456 billion in 2012. Most of that strength comes from the aforementioned Windows division, which saw a 24 percent increase from the same period in 2011.

Microsoft will hold an investor call today at 2:30 p.m. Pacific to talk about these numbers.

Microsoft’s stock is down around 2 percent in after-hours trading to $27.08.


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