NPD December 2011

Digital sales increases likely make up for the few % software shortfalls.

 

The chart in there shows just how much PC software sales have moved to digital distribution

~100 million for physical retail PC software. Which indicates the PC software industry is getting closer and close to being entirely digital distribution now. Amazon is another bit of evidence on that front as they are increasingly pushing to move to digital sales of software. Very interesting.

Microsoft is also starting to increase its push into digital distribution for X360.

I have a feeling that MS is hoping this generation lasts long enough to where it can go primarily digital distribution for the next gen Xbox.

Regards,
SB

 

If by that you mean "pirated", yeah I agree.

It'd be interesting to have numbers from steam over the years to compare.

 

MSFT earnings after the bell tomorrow.

 

I strongly remember we got actual data on that for actual sales (rather than piracy), PC have crossed the 50% digital bar somewhere mid 2011.

 

Do you have annual steam numbers to track trending?

 

Some googling shows up that I remembered the year wrong - first time it happened was actually first half of 2010:

http://uk.pc.ign.com/articles/112/1122088p1.html

Numbers used are through NPD.

 

Interesting.

11.2 million downloaded titles.

That's including the casual games.

That plus 8.2 million retail (including casual games) still leaves me thinking there were a lot more than 19.4 million PC games "acquired" in the first half of 2010.

I could be wrong though.

It'd be great to have some annual data to compare year to year.

 

MSFT Earnings

 

Xbox revenue for the quarter was $3.9B, and attributed almost 20% of MS's revenues. Very impressive stuff.

 

Impressive indeed.

I could see why such earnings might be drawing other fish to the pond ...

 

So if I am reading this correctly (which I may not be):

Code:

Operating income: Entertainment and Devices Division
Ending December 31st 2011
3 Month        6 Month
2011   2010   2011   2010
528    666     877     1,050

So in 6 months MS is claiming $877M in EDD profits in the last 6 months on $6.1B in revenue; $528M on $4.2B over the last 3 months. If I am reading that correctly they are well on pace to have a 1B+ fiscal year.

 

What's most interesting is that EDD is now the fastest growing division within MS, despite being saddled with an underperforming Windows Phone line. Said phone product line and perhaps other R&D probably explains why operating income dropped more sharply (~21% decrease) than revenue increased (~15% increase).

Regards,
SB

 

They shipped 8.2M units and that puts the shipments for the calendar year at 14.8-14.9M units. Total LTD shipments are just under 66M at around 65.8M.

 

Their US NPD 4th Q sales were only up YoY quite modestly though, along the lines of 7%, so to ship so much more than last 4Q (~30%) suggests a bit of over shipment likely to me. Possibly to be reflected in low 1st Q 12 shipments.

Still it looks like they were in line to justify the shipments until December NPD flopped.

 

I know I 'm repeating myself here, but basically the channel was empty for MS after the holiday 2010, I expect that is not the case this year. So 2010 was probably under shipped as opposed to being over shipped 2011.

 

So the entire rest of EDD only had 340m earnings? Can that be right??

 

What in there do you think is making a pile of revenue? Windows phone?

 

That does seem reasonable as here is my chart



Here is Sony's

 

I dont know, I thought there was a lot of stuff in there. Excuuuse me, Mr. Microsoft EDD expert.

Windows phone is doing terrible then.

I wonder which department all the Android patent royalties go to...