Microsoft reports $100M decline in Zune revenue — 54% less revenue than same Qtr. last year

Microsoft's newly-announced layoffs and declining profits aren't the only bad news in Redmond -- according to the company's quarterly statements, Zune platform revenue decreased $100 million, or 54 percent compared to the same quarter last year, due to falling device sales. Mega-ouch. Not all is doom and gloom for the Entertainment and Devices Division, which continues to be profitable with a $151 million haul: Xbox 360 and PC platform revenue increased six percent ($135 million) to $2.2 billion. Meanwhile, Apple saw a three percent increase in iPod sales over the same period, so we're anxious to see what Microsoft has planned for reviving the social.

So typical.

“the Entertainment and Devices Division, which continues to be profitable with a $151 million haul: Xbox 360 and PC platform revenue increased six percent ($135 million) to $2.2 billion.”

So what is the “headline”?

“Microsoft reports $100M decline in Zune revenue”

You FR Apple fans make the MSM jealous. Maybe they can learn how to be even more biased when covering Washington by taking lessons from you guys.

Oh yeah, Apple sales fell as well. Just when you charge more it doesnt hurt as much.

I considered a Zune, but had specific requirements that it had to easily play games.

I own a Palm TX for work. My wife discovered the Solitaire game and spent hours pecking on the touch Screen. I had to, I told her, buy a device she could use which would preserve the Palm for a long useful life I bought her (me) a basic iPod Touch (8 gigs). I put solitaire, her favorite music album and her favorite movie onto it telling her she would then love it. She does. I now have 2 full length movies, 6 albums of music 3 games and a handful of pictures on it and still have 3.9 GB available storage.

Oh yeah, Apple sales fell as well. Just when you charge more it doesn't hurt as much.

They did? Hmmmmm. Don't think so... in fact, Van, I know that's not true:

• Apple today posted record revenue of $10.17 billion and record net quarterly profit of $1.61 billion, or $1.78 per diluted share
• Apple sold 2.524 million Macs, representing 9% unit growth over the year-ago quarter
• Apple sold a record 22.727 million iPods, representing 3% unit growth over the year-ago quarter
• Quarterly iPhone units sold were 4.363 million, representing 88% unit growth over the year-ago quarter
— Peter Oppenheimer, CFO, Apple Inc., Quarterly report conference call, January 21, 2009

Why do you feel the need to prevaricate?

Meanwhile, Microsoft is laying off 5,000 workers, 5.1% of their 96,000 member workforce, including their Zune Blogger in chief, which should indicate the priority they will be giving to marketing the Zune.

-- Microsoft Corp. will cut as many as 5,000 jobs, the first company wide firings in its 34-year history, and said sales and profit will probably drop as the recession eats into software demand. The stock fell the most since 2000.
The reductions, about 5 percent of the workforce, will take place in almost all areas and help save $1.5 billion a year, the company said today in a statement. Microsoft also posted second-quarter sales and profit that missed projections, prompting the company to pull its full-year forcast. . . .
Microsoft said sales of Windows for personal computers declined 8 percent to $3.98 billion in the quarter . . . The company had predicted an increase of as much as 10 percent.
—Microsoft Cuts 5,000 Jobs as Recession Curbs Growth Diana Bass, Bloomberg.com, January 22, 2009.

Better use up those Zune Marketplace points before the store disappears.

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