Microsoft Reports Record $19 Billion Q2 Revenue

Record Revenue Due To Windows 7; Entertainment and Devices Sees Revenue Fall

January 29, 2010 – Yesterday, Microsoft reported a record revenue of $19.02 billion for the second quarter, which ended December 31, 2009. The company says that the record take represents a 14% increase over the same period last year.

Bolstered by the release of Windows 7, the operating income for Microsoft was $8.51 billion, a 43% increase over 2008’s numbers.

Microsoft’s Entertainment and Devices Division, which includes the Xbox 360, Games for Windows, and Zune, tripled profits even though revenue fell. Microsoft reported that its cost of revenue decreased 23 percent to $478 million because production of the Xbox 360 is now costing less.

In addition, Microsoft announced that research & development expenses in its Entertainment and Devices Division went down by $50 million, indicating that research on Natal is complete and that Microsoft is most likely not preparing to begin building a new, next-gen Xbox as indicated by their statements that they feel the Xbox 360 is only in the middle of it’s life cycle.

Microsoft saw a decline in revenue due largely to the fact that there weren’t as many exclusive releases in the second quarter of 2009 as opposed to the same quarter in 2008, which saw Gears of War 2 and Fable 2 release for the Xbox 360.

2010 is looking to change that with the release of Halo: Reach, Mass Effect 2, Fable 3 and Alan Wake. In February, Microsoft will hold X10, in which they will unveil and detail many of the upcoming games for the 360 in what is sure to be a big year for the tech giant.

Source: Microsoft