Microsoft: strong Xbox 360 holiday demand, lays off 5,000

While Sony‘s scrambling to staunch its financial wounds, Microsoft posted its reports for the second quarter, stating that strong demand of the Xbox 360 during the holiday season raised the revenues of its Entertainment and Devices division by 3%.

The company will also be laying off its own people in certain departments, though how this would affect the Xbox 360 division is yet to be determined.

While Sony‘s scrambling to staunch its financial wounds, Microsoft posted its reports for the second quarter, stating that strong demand of the Xbox 360 during the holiday season raised the revenues of its Entertainment and Devices division by 3%.

Like Sony though, Microsoft will also be laying off its own people in certain departments, though how this would affect the Xbox 360 division is yet to be determined. They will be letting go of 5,000 of its employees in “R&D, marketing, sales, finance, legal, HR, and IT over the next 18 months, including 1,400 jobs today.”

Overall, the company posted revenues of US$ 16.63 billion for its second quarter. Although it increased 2%, it’s still US$ 900 million lower than expected. They also state that they “undertake no duty” to offer guidance for next year’s revenues due to the faltering economy. Those are fancy words to say they don’t know what’s gonna happen to them either.

Following their press release, their stock went down 7%. Sounds like a lot of people are having a bad day today. Now that Sony and Microsoft have their cards on the table, I wonder how Nintendo’s doing. Probably hiding a straight flush.

• Microsoft to Kaz: we’ll outsell the PS3 through the entire generation
• Sony’s Kaz Hirai: we’re the official leader, Ninty in a different world, MS lacks longevity
• Pachter: Both Hirai and Greenberg are right

Via Microsoft