Well the Big News today was Microsoft had its first year-to-year loss in its history.
However, I’m more interested in my mild obsession: the Entertainment and Devices Division (EDD), who’s primary income and expense comes from the XBox 360. They lost $31m compared to making $106m same time last year. Revenue was down only 2%.
Interestingly enough they first blame the poor performance on Apple software sales. Apparently Office 2008 for the Mac is down 63%. They go on to explain this as because Mac sales are down.
According to Apple’s 10Q Mac sales are down 3% this year so I’m guessing that the real Office for the Mac problems are:
- Microsoft Office 2008 for the Mac was not very well received.
- Microsoft Office for the Mac is no longer considered a requirement since there are now several good alternatives that range from $0 to $99.
Strangely enough I would have thought that Office 2008 for the Mac would have been part of the Microsoft Business Division (MBU) with Office for Windows but I’m wrong. I guess that’s why I’m not paid the big bucks.
Later in the 10Q they mention the real culprit: R&D expenses are up $66m due primarily to increased headcount.
So this brings the EDD’s net loss (revenue – expenses) up to $6.664 billion since the XBox was launched.
| Year | Net income | Cumulative |
|---|---|---|
| 2009Q3 | ($31) | ($6664) |
| 2009Q2 | $151 | ($6633) |
| 2009Q1 | $178 | ($6784) |
| 2008 | $426 | ($6962) |
| 2007 | ($1969) | ($7388) |
| 2006 | ($1339) | ($5419) |
| 2005 | ($539) | ($4080) |
| 2004 | ($1215) | ($3514) |
| 2003 | ($1191) | ($2326) |
| 2002 | ($1135) | ($1135) |
(in millions of dollars)
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