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Xbox revenues down 24% for Microsoft’s third quarter largely due to the Xbox One price cut

Microsoft sold 1.6 million Xbox Ones and Xbox 360s last quarter, which is down from 2 million last year. Most of that is probably because the 360 is dying.

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MightyNoX909d ago

Huge decline from last year. It's to be expected. They stuffed the channel.

Thatguy-310909d ago

It's expected. I mean the console was selling at 500$ at the time where as now the official sku is 350$. As a whole Microsoft killed it but the Xbox division isn't doing them any favors. It's crazy because you see them where they don't depend on it while Sony corporation is built upon the gaming division. Sony has been killing it lately and it's noticeable with these earning reports.

Transistor909d ago (Edited 909d ago )

It's not expected in my opinion. Dropping the price and throwing in free games should have had them sell more, not ship less. Also in the second year you should be making progress. If you factor in the price of the free games its pretty much half the price it was.

Dlacy13g909d ago

@Transistor, I do agree to an extent. I think MS also was really counting on Evolve being a bigger deal than it turned out to be. They had a lot of marketing push around that title and hoped it would help carry a quiet 1st quarter for games. I don't care how cheap the console is, if there is nothing "exciting" coming out vs the competition having 2 fairly high profile exclusives launching....you are going to suffer in sales.

Muerte2494909d ago (Edited 909d ago )

March 31, 2014 Xbox One available 13 markets
1.2M Xbox One shipped 800k 360

March 31, 2015 Xbox One available 42 markets
1.6M shipped XBO+360

No matter how you slice it, this doesn't bode well for them. Xbox One is at a cheaper price and available in more markets when compared to 2014. There is no reason for it to be down YOY.

Kal0psia909d ago (Edited 909d ago )

^

They're indeed at a loss, but no doubt they'll do fine. Still a lot of XOne owners out there and the Live community is very active along with software sells doing very well even with the console deficit in comparison to PS4. Once the main titles launch it'll further establish it'self. But I'm glad Microsoft is being competitive, simply because they have the capacity to.

vishmarx908d ago (Edited 908d ago )

i expect this to get worse in the next quarter.
they had ori and screamride , now theyve got NOTHING.
the big games in summer expected to be witcher batman pcars and possibly until dawn.none of them will help xb1 a great deal. the sudden price drop helped them loads last year. i wonder what theyll do now though.cant go any lower.

EDIT: holy crap how did i just get 5 bubbles.
i was on 2 last i checked lol

Gwynbleidd908d ago

Computing and Gaming hardware reached a gross margin of 414 million compared to 258 million last years 1st quarter. XboxLive usage grew 30% and software sales are profitable too. Microsoft gaming business all in all is healthy and profitable.
I don't get all this MS is loosing on Xbox talk. You have to see the gaming business as a whole and with the unified platform Win10 round the corner things most likely are going to improve further.

http://www.microsoft.com/in...

breakpad908d ago (Edited 908d ago )

the thing isnt the lack of exclusives ...is the quality of them..take example of Sunset Overdrive ..simple shooting mechanics with uninteresting bland story and hipster -whatever art direction ...this thing no matter how much you promote it , doesn go anywhere, it will be forgotten and doesnt offer any sales to your console
The same goes for titanfall , bland story some innovative mechanics and catchy graphics but other than that very similar to other FPS's...now compare these to Bloodborne a game that oozes from beauty and hardcore(normal for the older ones) old styled gameplay , leaving one sweet memorable experience behind it

Gwynbleidd908d ago

@breakpad:
Sure the quality plays a role but what you stated is your opinion. Bloodborne for example does nothing for me as I don't like that kind of gameplay. Same goes for SSOD. I played the free weekend but the game didn't keep me interested enough.
Titanfall on the other hand: I love that game. Played a lot last year and still play it often as it so far has the best FPS mechanics to MY taste. Never before I had more fun in MP matches since maybe Unreal Tournament, BF 1942 and BF Vietnam. Vertical gameplay, AI enemies, Titans and ultra stable servers make this game my favourite FPS this gen (so far).
To name some other exlusives I love to play: Ryse and ForzaMotorsport 5. Those two games are one reason I bought the Xbox One for launch. The Xbox serves my gaming taste better than the PS4. That doesn't make the PS4 a bad console. It just makes it the wrong console for me.
In my eyes there are plenty of high quality exclusives on X1!

+ Show (5) more repliesLast reply 908d ago
scientificreasoning909d ago

What? No it is not expected to be down in your second year when you are 150 cheaper...Do you think Ps4 would be down if it was even 50 cheaper?

subtenko908d ago

This is just kinda sad though, and I'm primarily a Sony Playstation fan. I just wish M$ Xbox division would turn from all the sht they do (imo)

Follow some of Sony's principles, keep your exclusives and they will be pretty cool in my book. Nintendo....I dont think there's anything they could do to win me back. It's just not for me anymore, but they HAVE changed....a lot, too much.

Jazz4108908d ago

This is not a huge deal. They still had 1.8 billion in revenue. The company in no way took a loss and the 360 is not selling as well. MS also lowered the price of the one. I don't know why we are comparing them to a company trying to get back in business that has dropped everything to stay alive. It's not even the same thing. We should all be happy both companies are now making money. I expected sales to be down for both companies with 360 and ps3 sales sliding.

mikel1015909d ago

Plus like no exclusive games the entire quarter. At least least year they had Titanfall

NeoGamer232909d ago

I haven't had a lack of new games on X1 this year...

Neverwinter, Forza Fast and Furious, #IDARB, Kalimba, Screamride, Ori and the Blind Forest, etc.

Their games may or may not be exclusive depending on how you look at things, but that doesn't mean XB gamers were sitting there bored while PS games played games like The Order, Bloodbourne, MLB 15, Helldivers, Grim Fandango, etc.

G20WLY909d ago

If you don't think it's the games, then what do you think made revenues drop off a cliff?

moldybread909d ago

"If you don't think it's the games, then what do you think made revenues drop off a cliff?"

the xbox 360 sales have dropped dramatically and microsoft continues to overship over the holidays, plus when you add in all those free games it means less revenue overall.

Qrphe909d ago

Then what is it? What's keeping the X1 away from success if it isn't exclusives?

buttcheeks909d ago

Dlc...indie...indie. ..indie..the x1 is so stacked with amazeballs gaming experiences

moldybread909d ago (Edited 909d ago )

"Then what is it? What's keeping the X1 away from success if it isn't exclusives?"

a mixture of things but to put things into perspective the system is actually selling not too badly, much better than the wii u which has quite a few exclusives.

the ps4 was conceived and marketed well from the start. it's the most powerful, affordable and has the backing of a company known to support its hardware the most. when you remove the huge success sony is having with the ps4 the xbox one doesn't appear to be doing poorly. this glaring omission is often ignored to the competitive nature on forums when some think only one can be a winner and the rest are losers.

JackBNimble909d ago

"Then what is it? What's keeping the X1 away from success if it isn't exclusives?"

It's people like me , I just ordered two ps4's , one for me and one for my son. Nothing but the best for us ..lol

JMyers909d ago (Edited 909d ago )

@ NeoGamer
How come when games like you mentioned are listed for PS4 XB1 owners say they aren't real games? Such as Transistor, Resogun, Grim Fandango, and so many more? Apparentely the PS4 has "no gamez". Yet MS has done the same this year, and will continue this until maybe Sept. It's not only the holidays that count.

There is still Until Dawn, Teraway Unfolded, GOW 3, Everybody's Gone to the Rapture, and Ratchet and Clank to come this year. Some may not make it in 2015, but they are certainly slated as such.

PSX also showed KillStrain, Drawn to Death etc. I don't see how this conclusion can be drawn. Indie games only matter and count when they're on XB1 it seems. Did you really play scream ride? That "etc" you used is made up. There is nothing else other then what you listed. Yes the holidays will be good for MS, but it only increases sales in 2 months of the year in 2 markets (NA and UK). ROTW is still buys PS4s. MS needs games year round.

funkybudda908d ago

@moldybread:

"this glaring omission is often ignored to the competitive nature on forums when some think only one can be a winner and the rest are losers."

Isn't that how most of the xbox fan base see last gen though when it comes to 360 vs PS3? I wonder how's the taste of their own medicine when the table are flipped this gen.

NeoGamer232908d ago

@G20WLY
I think you are going to see a lot of revenue jump off a cliff for gaming in the console space.

PC gaming is resurging and will probably continue to resurge with Windows 10. Mobile gaming keeps getting better and better on iOS, Android, and Windows.

In 5-10 years consoles will fade to black. I will have a mobile device, I will pick it up, and if I want to play on the big screen I will simply "project" it wirelessly to that screen. I won't need a console, I will just need a smart mobile device with a TV that supports wireless connectivity with that device.

Gone are going to be the days of discs, consoles, and any other smart device meant to connect my TV to the world.

Gh05t908d ago

"Isn't that how most of the xbox fan base see last gen though when it comes to 360 vs PS3? I wonder how's the taste of their own medicine when the table are flipped this gen."

Or we could go back further and see how the PS fanbase treated the original XBOX as compared to the PS2... maybe thats why most XBOX fans felt the need to rub PS fans face in success last gen... PS fans werent to humble in the PS2 days... this is all a cycle and its a pendulum swing. And if MS ever gets back on top the XBOX fans will over react and bring up how they were treataed and blah blah blah... it is a perpetuation of immature loyalty about an ENTERTAIMNENT industry.

+ Show (7) more repliesLast reply 908d ago
maybelovehate909d ago (Edited 909d ago )

Very true. No system sellers for X1 this year so far. Although I would argue that Ori should be! They should advertise that game more, it is so awesome.

@_-EDMIX-_ regardless of where you buy it, you should buy it. Although I would say marketing it on the console would probably have the most impact. Game has pretty big System Requirements.

_-EDMIX-_909d ago

Not really. Its on Steam... So buy an XONE for a game I can play right now on PC? No doubt its a good game, system seller? When I can play it without an XONE?

No need to advertise that game more as it won't translate into XONE sales, best to save that money for games that will push units.

buttcheeks909d ago

I agree ori is a great game but why does the multiple great indie titles on the PlayStation get ignored then used to joke about the ps4. Aka the indiestation

maybelovehate909d ago

@buttcheeks: Ori isn't an indie game. It is published by Microsoft Game Studios.

dirkdady909d ago

It doesn't matter who is publishing it we know what we all mean in the context of smaller indie sized downloadable games vs AAA box retail releases.

maybelovehate909d ago

It does matter because it is not an indie game. It is a simple matter of truth. Have you seen the credits on Ori? They are longer than some summer movies.

DDOS-DelDaemonicOSes908d ago (Edited 908d ago )

I wish it would have been legal that Microsoft put 10-15 billion more into the hardware of XO (selling it at a loss) for that Sony would be out of business now rather than we have news such as this about how Microsoft's profits are down. I suppose the second fiddle route is the only way to avoid the fLAMER "antitrust" issues with "Ms" problems.

@indie Ori not indie... if Ori is an indie, then it is in a different league than indies on PS4. For those that disagree, please list indies of comparable QUALITY (such as with real orchestral music made for it) rather than indies that might have a similar Metacritic score.

@Kemo_Spear, excellent point, though if Journey and Ori are the only two such games, I still think they're in a different league. It seems Sony fans are trying to SPIN that Ori is an indie to slight it while claiming that Microsoft isn't releasing games year round.

Not only that, their "consistent" logic is consistently flawed, such as due to The Order was a DELAYED HOLIDAY TITLE (I expect the same SPIN next year with Uncharted 4) and MLB is released due to seasonal timing that has NOTHING to do with Sony having an agenda to be more "consistent" year round with releases to please customers, and yet, Sony fans are constantly listing those as examples of better Sony support year round while slighting Ori as insignificant... Sony fans don't want to allow Ms deservedly wins ANY points... the SPIN is childish and obnoxious... not GG.

Edit: @Kemo_Spear, I just wanted to say that I didn't intend that last part about "not GG" towards you, and I also wanted to say the "if then can't be IndieStation" logic of your comment was AAA.

Gh05t908d ago

@dirkdaddy

"It doesnt matter who is publishing..."

Are you kidding me?

THAT IS THE WHOLE POINT!

small studio doesnt mean indie. Non AAA doesnt mean indie.It must just be a generational thing but I remember a time when words actually meant the definition and rarely ever forced into meaning whatever people WANT them to mean.

Indipendant means published without a large publishing company. Not only was Ori not published indipendantly it wasnt even made by an indipendant studeo.

You are quantafiably innaccurate in your understanding of the diction you use.

Last gen this would have been called an arcade game as it would have been released in the xbox arcade section. Not the Indie section... as they have removed the sections for X1 it doesnt mean they are all one in the same.

Kemo_Spear908d ago (Edited 908d ago )

@maybelovehate It IS an indy game. But just for giggles, I will play your silly little game.
By your logic (as flawed as it is) Ori is not an indy game because it is published by MS. Fine. Then Flower, Flow, journey, Resogun, Escape plan, HellDivers,Counter Spy, Pixel Junk and a huge boatload of other games published by Sony are now AAA games. Now, thanks to your logic, the PS4 should no longer be called the IndyStation because it has the most AAA games.

@DDOS-DelDaemonicOSes Journey says Hi.

maybelovehate908d ago

@Kemo_Spear: No it is not an indie. I can't believe we are even arguing something so black and white. Or maybe black is white and there is no logic in the world.

Kemo_Spear908d ago

@maybelovehate
Moon Studios is an Indy company who have only one other title under their belt. They have NEVER produced a AAA game only Warsoup, which was a "a Realtime-Strategy-First Person Shooter.". If you look for reviews of that game you will find it refered to as a indy game in almost all reviews. Moon Studios IS an indy company, Ori IS an Indy game that MS shelling out the $$$ to get it published. No matter how you spin it, it IS an indy game.
" I can't believe we are even arguing something so black and white." Neither can I, but you refuse to face reality.

maybelovehate908d ago (Edited 908d ago )

it isn't produced by Moon Studios, it is produced by Microsoft Game Studios. Which is the reason it cannot be independent. Do not know how that cannot be more clear.

It started out as an independent game with Moon Studios financing it themselves through KickStarter but after seeing the game, Microsoft decided to partner with them. At which point it was a joint venture. Watch the credits for Ori. It is hardly the small team at Moon Studios. It is hundreds of people who created this game.

Many games are made by independent studios. Forza Horizons 2 (360 version), Killer Instinct, Sunset Overdrive, Alan Wake, Max Payne, etc etc etc. Are they all indy games now too?

Kemo_Spear907d ago

@maybelovehate
Are you for real??? So now Insominac studios (Ratchet & Clank), 2K (Bioshock), Remedy Entertainment (the OG Max P), Rare (Donkey Kong Country), & Turn 10 (every single Forza game going back to 2005)) are now indy companys??? Give me a break. At this point of the conversation, you have proven that you know not of what you are talking about. You just can not face the fact that Ori is an indy game PERIOD.

http://en.wikipedia.org/wik...

The very first line on that page even says so:
"Ori and the Blind Forest is a platform adventure video game designed by Moon Studios, an independent developer, and published by Microsoft Studios."
Do not get me wrong. Ori is a great game that deserves all the kudos it is getting, but quit trying to make it out to be something that it is not. There is noting wrong with Indy games. All of the great game developers first started out as indys, and, in time, ended up being great AAA developers.

maybelovehate907d ago (Edited 907d ago )

Lol.. listen. Insomniac is an independent developer. Every none publicly traded business/company is private and independent. Nobody owns them. Sunset Overdrive is not an independent game. It is published and produced by Microsoft. In fact it has been many years since Insomniac has made an indie game, with either Sony, EA or Microsoft publishing their games. Moon Studios is an independent studio too. BUT ORI IS NOT AN INDIPENDENT GAME. IT IS OWNED, PUBLISHED, PRODUCED BY MICROSOFT GAME STUDIOS.

from the same wiki.

"Ori and the Blind Forest was developed by Moon Studios, a worldwide collaboration of designers and programmers who have been working on the game for the past four years, with Microsoft acquiring the game about a year after development started."

Didn't think I would ever have to explain this, but an independent game is independently developed. It isn't bought by MS, it doesn't have Microsoft producers producing and funding it. If you watch the credits there are literally hundreds of people that worked on the game. Very few from Moon Studios and no Moon Studios didn't pay them to contribute. Microsoft did because they funded it. So yeah.

+ Show (10) more repliesLast reply 907d ago
kenshiro100908d ago

^

But the PS2 was dominating over the original XBox by a huge margin.

BillytheBarbarian908d ago

Weak consoles win many wars...NES weaker than the SMS, PS2 weaker than GC and Xbox, PSone weaker than N64, Genesis even beat the SNES from 1991 to late 1993 until Sega committed console suicide by pumping out add-ons instead of good software.

Anyway, power doesn't amount to much as long as the games are good. Right now I've got zero interest in the Xbox one. I've went to the store intent to buy one but after browsing the game library nothing screams out to me yet. And really the PS4 hasn't impressed me either but Sony is definitely reaping the benefits of Microsoft's lack of software power house games.

Transistor909d ago (Edited 909d ago )

Yeah, thats not good.

Q3 2014 was 2.0 million with the 360 doing 800k.

In Q3 2015 if the 360 had a 50% drop off that would leave the Xbox One around 1.2 million.

This is with price cuts too which makes it worse YOY and this is shipped not sold.

For reference between Jan and Mar the PS4 sold 1.7 million, more than the 360 and Xbox One shipped in less time. PS numbers are next week I believe.

ThinkThink909d ago

"The NPD Group has found that sales for the Xbox 360 and PlayStation 3 have taken a nosedive. Microsoft’s older box was likely selling well through parts of last year, but that’s no longer the case. This is also putting a big dent in Microsoft console performance."

I expect the sales of xbox 360 and ps3 will drop even more next year contributing to an even further drop. Though it might balance out as now it's upgrade season for many casual games. We shall see how it balances out. Either way 1.8 billion in revenue for the computer and devices devision is still pretty damn good.

Clogmaster909d ago

Hope the PS3 has long legs like the legendary PS2 did.

buttcheeks909d ago

It wont to be blunt with you the the majority of from now on will be current gen only

blackblades909d ago

Still has games releasing on it jrpgs at that. Still be selling over there in JP for awhile.

TheRacingX909d ago

Well, technically it has....it came to market in 2006 and it will be 10 yrs next year.....so thats Sony's 10 yr life cycle....it doesnt feel like it, because the PS3 didnt hit its stride until '08-'09......