Microsoft Corp (MSFT)
Earnings Release  FY13 Q3
Continued leadership position in console market
1.3M consoles sold, down 9%
Xbox LIVE members >46 million, up 18%
Transactional revenue grew double the rate of member growth
Windows Phone momentum
161 billion minutes of calls on Skype in quarter, up 56%

EDD revenue increased, primarily due to higher Xbox 360 platform and Windows Phone revenue. Xbox 360 platform revenue increased $641 million or 55%, primarily due to the recognition of $380 million of revenue related to the Video Game Deferral and higher Xbox LIVE revenue. Windows Phone revenue increased $259 million, including patent licensing revenue and increased sales of Windows Phone licenses.

EDD operating income increased, primarily due to revenue growth, offset in part by higher cost of revenue and research and development expenses. Cost of revenue increased $275 million or 23%, due mainly to increased royalties on Xbox LIVE content and video games. Research and development expenses increased $113 million or 28%, primarily reflecting higher headcount-related expenses.

Download Segment Information:Excel (27KB)
Entertainment and Devices Division
RESULTS (in millions, except percentages)
Q313 Q312 Change
Revenue $ 2,531 $ 1,618 56%
Operating
Inc (Loss)
$ 342 $ (228) *
* not meaningful
FY13 Earnings Release Schedule
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