Microsoft Corp (MSFT)
Earnings Release  FY11 Q4
Xbox franchise drives record year
Revenue up 45% to $8.9 billion
Xbox #1 console share in the U.S.
55 million Xbox 360 consoles installed WW
Approx. 35 million Xbox Live members
Introduced Kinect
Windows Phone launched worldwide
Signed alliance with Nokia

EDD revenue increased primarily reflecting higher Xbox 360 platform revenue. Xbox 360 platform revenue grew $2.7 billion or 48%, led by increased volumes of Xbox 360 consoles, sales of Kinect sensors, and higher Xbox LIVE revenue. We shipped 13.7 million Xbox 360 consoles during fiscal year 2011, compared with 10.3 million Xbox 360 consoles during fiscal year 2010.

EDD operating income increased primarily reflecting revenue growth, offset in part by higher cost of revenue. Cost of revenue increased $1.8 billion or 49% primarily reflecting higher volumes of Xbox 360 consoles and Kinect sensors sold, and increased royalty costs resulting from increased sales of Xbox LIVE digital content. Research and development expenses increased $119 million or 12%, primarily reflecting higher headcount-related costs. Sales and marketing expenses grew $90 million or 12% primarily reflecting increased Xbox 360 platform marketing activities.

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Entertainment and Devices Division
RESULTS (in millions, except percentages)
2011 2010 Change
Revenue $ 8,913 $ 6,168 45%
Operating
Income
$ 1,324 $ 618 114%
FY12 Earnings Release Schedule
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