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Microsoft in profit despite 360 losses

As a whole the firm enjoyed profits of $3.65 billion for the three months ending December 31st 2005, with revenue of $11.83bn. This compares with profits of $3.46bn for the same period last year, and revenue of $10.82bn.

However, the Home and Entertainment division saw last year’s $55m profit transform into a $293m dip, attributed to continuing supply problems with key Xbox 360 components and the costs of a global launch.

Throughout the period, Microsoft sold 1.5m Xbox 360 consoles across all territories, including 500,000 in Europe, and has reduced its previous estimate of three million console sales in the first 90 days to 2.5m, all due to capacity constraints.

However, the Redmond firm claims that it is still on track to sell between 4.5 and 5.5 million Xbox 360s by June. Microsoft also raised its sales forecast for the full year from 10-12 per cent growth to 11-12 per cent.

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