Microsoft announces Q2 earnings: $6.63b profit, Xbox revenue up 55%, Windows dow

[Sneha Chowdary]

Microsoft announces Q2 earnings: $6.63b profit, Xbox revenue up 55%, Windows down 29%
    [img]http://www.blogsmithmedia.com/www.engadget.com/media/article_label_fileunder.gif[/img] [url=http://www.engadget.com/topics/miscgadgets]Misc. Gadgets[/url] Microsoft announces Q2 earnings: $6.63b profit, Xbox revenue up 55%, Windows down 29%  By [url=http://www.engadget.com/editor/nilay-patel]Nilay Patel[/url] [url=http://www.engadget.com/editor/nilay-patel/rss.xml][img width=11 height=10]http://www.blogsmithmedia.com/www.engadget.com/media/writer_rss.gif[/img][/url] posted Jan 27th 2011 4:15PM    Breaking News    [center][img width=600 height=398]http://www.blogcdn.com/www.engadget.com/media/2011/01/dsc0074.jpg[/img][/center] Microsoft just announced it's had itself a solid second quarter, posting an $6.63 billion profit on record revenues of $19.95 billion. That's more or less about the same as last year, when it racked up an $6.6 billion profit on $19 billion in revenue -- and while the numbers look stable and Redmond managed to slightly beat estimates, things are changing fast underneath the bottom line: [url=http://www.engadget.com/2011/01/05/8-million-kinect-sensors-sold-in-first-60-days/]strong Kinect and Xbox 360 sales[/url] drove Entertainment and Devices Division revenue up 55 percent to $3.6 billion, but Windows and Windows Live revenue fell nearly 30 percent to $5.05 billion. That means the revenue gap between Microsoft's consumer device business and the Windows business is now just some $1.3 billion, compared to $4.8 billion this time last year -- and it undoubtedly explains why [url=http://www.engadget.com/2011/01/05/live-from-microsofts-ces-2011-keynote/]Xbox got top billing at Ballmer's CES keynote[/url] this year, after traditionally being ignored, and why Microsoft is [url=http://www.engadget.com/2011/01/05/microsoft-confirms-arm-support-is-coming-in-windows-will-play-n/]moving Windows to ARM[/url] as the mobile and tablet spaces heat up.

As for Windows Phone 7, there's nary a peep, even though Microsoft was just crowing about [url=http://www.engadget.com/2011/01/26/microsoft-over-2-million-windows-phone-7-licenses-sold-to-man/]moving 2 million licenses[/url] yesterday -- we're taking that to mean the infant OS hasn't had any meaningful impact on revenue yet. We're going to jump on the call at 5:30PM ET, we'll let you know if anything good happens.

[b]Update:[/b] Corrected the profit numbers: it's a $6.63b profit and a $8.17b operating income, not a $8.17b profit.

[chotu gadu]

These results may be satisfyin but definitely not on par...

[Sneha Chowdary]

[quote author=chotu gadu link=topic=148301.msg1716281#msg1716281 date=1296165382]
These results may be satisfyin but definitely not on par...
[/quote] @gr33d @gr33d