Microsoft Corp (MSFT)
Earnings Release  FY12 Q3
Continued industry-leading console share despite soft market
1.4M consoles sold, down 48%
Leading U.S. market at 42% share
Expansion of TV content, partners and entertainment experiences for Xbox LIVE
Lumia 900 & HTC Titan II launched in April on AT&T 4G LTE network in U.S.
Windows Phone launched in China
100 billion minutes of calls on Skype in quarter, up 40%

EDD revenue decreased primarily reflecting lower Xbox 360 platform revenue, offset in part by Skype revenue and Windows Phone software license revenue from Nokia. Xbox 360 platform revenue decreased $584 million or 33%, due mainly to decreased volumes of Xbox 360 consoles and standalone Kinect sensors sold, offset in part by higher Xbox LIVE revenue. We shipped 1.4 million Xbox 360 consoles during the third quarter of fiscal year 2012, compared with 2.7 million Xbox 360 consoles during the third quarter of fiscal year 2011.

EDD operating income decreased reflecting lower revenue, payments made to Nokia related to joint strategic initiatives, and higher other operating expenses. Research and development expenses increased $100 million or 35%, and sales and marketing expenses increased $79 million or 50%, primarily reflecting higher headcount-related expenses. Cost of revenue decreased $80 million or 6% primarily due to lower volumes of Xbox 360 consoles and standalone Kinect sensors sold, offset in part by payments made to Nokia.

Download Segment Information:Excel (27KB)
Entertainment and Devices Division
RESULTS (in millions, except percentages)
Q312 Q311 Change
Revenue $ 1,616 $ 1,935 (16)%
Operating
Inc (Loss)
$ (229) $ 210 *
* not meaningful
FY12 Earnings Release Schedule
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