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Microsoft announces record holiday earnings for 2011

Microsoft has announced record earnings for the quarter ending Dec 31, 2011. Sales of Xbox 360 and Kinect were mentioned as “compelling” drivers in a holiday season that capped off the quarter with an overall company-wide revenue of $20.89 billion, 5% up on the same period last year. “In addition to the continued strength of our commercial business,” said COO Kevin Turner, “this holiday season was the strongest in Microsoft history.”

While the company saw growth in its Microsoft Business, Server & Tools and Online Services divisions (with only Windows & Windows Live posting a decline), the biggest surge was seen in the Entertainment & Devices Division, which posted a 15% revenue increase over the holiday quarter for 2010. Turner attributed much of the company's positive results to “good sales execution and compelling products like Xbox 360 and Kinect,” devices for which Microsoft boasts install bases of 66 million consoles and 18 million sensors respectively.

In light of the unexpectedly positive quarter, the company's posted revised expense projections for the next year, with expected operating expenses down $400,000. It'll be interesting to see whether the company can convert the past quarter's high uptakes into continued growth, both within the Xbox division and from new product lines.

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5 comments

  • AuthorityFigure - January 20, 2012 5:44 p.m.

    I wish my pay-packet could be described as 'compelling'... :-(
  • Redeater - January 20, 2012 4:29 p.m.

    They should fund Bulletstorm 2 and keep it as an exclusive. I know this will never happen but at least it is more tolerable to dream of this scenario instead of all the Kinect garbage that will be coming out. Except for the Kinect Double Fine game. If I was a kid I would have loved that game to death!!
  • Defguru7777 - January 20, 2012 11:17 p.m.

    Yes. Bulletstorm deserves a sequel.
  • EwoksTasteLikeChicken - January 20, 2012 4:09 p.m.

    With sales this high, I can't imagine they would release a new console until at least 2013.
  • dphoenix192 - January 20, 2012 3:05 p.m.

    Its a shame that kinect was successful from a financial standpoint. I wonder if I will end up getting microsoft next gen machine.

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