70°

Microsoft Q1: Xbox 360 sales down, Xbox Live revenue up

Microsoft’s Devices and Consumer Hardware segment had a strong first quarter, but its performance was, for once, not due to the success of Xbox 360 hardware sales – although Xbox Live is minting it.

The platform holder noted a 37% year-on-year upswing in the Devices and Consumer Hardware segment, but it was sales of the Surface tablet family that spurred the rise, with $400 million in revenue.

As for the Xbox 360, it shifted 1.2 million units – a 29% decrease year-on-year, which is unsurprising given the launch of the Xbox One next month.

ohiostatesman3823d ago

Yep MS is making a killing right now. There net profit was 6 billion last I read. That's just for 1 quarter. O.O

3823d ago
OrangePowerz3823d ago (Edited 3823d ago )

A bit late for Q1 numbers as that was April, May and June. So that sales decrease came during the announcement month of X1 when MS still sold more consoles than Sony.

Software_Lover3823d ago

Same thing I was thinking, but when it rains it pours. People look for certain types of information they will find it.

Pogmathoin3823d ago

I have nothing better in life to do.... Someone give me figures.... Find more MS negatives.... Or tell me how Sony has been destroyed in every area except PS....... Please....

Anon19743823d ago (Edited 3823d ago )

MS's Q1 starts in July. This is the quarter ending Sept 30th. Sony reports their earnings for July-Sept (Q2 for them) on Oct 31st.

For April-Jun Microsoft reported 1 million consoles shipped. I see they reorganized the business units and split Xbox hardware from Xbox Live. Hardware is now in the "Devices and Consumer Hardware" division and Xbox Live is in "Devices and Consumer Hardware Other" with ad revenue, Bing revenue, MS Office subscriptions, etc.

OrangePowerz3823d ago (Edited 3823d ago )

Who has their Q1 from July till September? The majority of all other companies have it April - June and some January - March. It`s a very odd choice to have that being Q1 kind of out of sync with most of the finance world.

lastofgen3823d ago

$5.2bn profit??
Damn, that's a ton. I'm surprised ms beat wall street expectations.

Anon19743823d ago

Not only beat expectations, they crushed expectations. Good for them!

AceBlazer133823d ago

when xblg renders the the system near useless without it i'm not surprised by the revenue from it.

FanboysAreGimps3823d ago (Edited 3823d ago )

Not bad at all, and this is part of the reason that Sony have included multiplayer subscription costs, and you really cannot blame them

kreate3823d ago

Becuz MS and its fanboys paved the way for sony?

FanboysAreGimps3822d ago

What have fanboys got to do with a company making money?, that is the idea of business, you know, profits......

kreate3822d ago (Edited 3822d ago )

ok i guess fanboys got nothing to do with anything.
but somehow somewhere, ppl really liked the idea of paying to access the multiplayer part of their games.

it is my theory that a logical person wouldnt support such a idea. but that's just me.

but i do agree with ur first comment though.

Show all comments (18)
370°

Could Xbox Soon Become The Next Dreamcast?

Microsoft's future in the video game space is murky right now, so let's break it all down.

Read Full Story >>
thegamer.com
ApocalypseShadow11d ago (Edited 11d ago )

Not anytime soon. But they're on that path.

One thing not mentioned in the article is Microsoft's money bags. If Sega had Microsoft's money, they would have still been around as a hardware manufacturer. Xbox as a platform only survives because of the money bags. They can continue making consoles for the core and port to PC.

The multiplatform strategy is only the result of arrogance and misguided leadership that blew up in their face. They thought gamers would jump on Xbox in droves if they knew that many of their favorite games would be only on Xbox. But that's not happening at all. Sales didn't increase. They decreased. Why? Because the dumb asses thought giving away these expensively made games in a cheap service would also turn the tide.

Gamers on other platforms are willing to buy quality. They don't need to be handed nearly free games in a service that aren't even finished and sometimes average in their development. Gamers buy Nintendo games. They buy Sony games. Microsoft groomed their base to not buy games. Even the quality ones. It has always been their plan to go digital. But most gamers still like single player gaming. Still like physical releases.

Microsoft's problem has always been that they don't produce high quality games at the same output as Nintendo and Sony. Actually, they should be producing quite a lot more because they're worth over 2 TRILLION. How they don't have more is ridiculous and no excuse. Buying publishers to take away from competition only backfired. Because it still takes millions of dollars to continue to make those games from the publishers they snatched. Their only choice was to crawl back to their competitors to help sustain those developers because Nintendo and Sony platforms were the ones buying games.

Am I sorry for Microsoft? Hell no! They deserved last place for putting in the least effort. They deserved the fallout for buying up the industry and didn't make a single blip on the radar against their competitors where they now need those same gamers they took away games from to support them. Part of it may have been to cash in on their competition. But the result is the slow death of their platform. They may go 3rd party. They may keep making hardware. I don't give a shit about them to worry about it. I only give a shit about the destructive nature of their industry moves that only negatively affect gamers. They could sell and drop out of the industry and I wouldn't blink. Probably laugh. But not blink. They deserve whatever comes to them. At least Sega put in the effort when it came to games. They just had poor leadership. Microsoft has poor leadership and barely makes memorable games. That's a killer combination. And not in a good way.

Cacabunga11d ago

That would be an insult to Dreamcast.. it had a crazy line up of legendary critically acclaimed games.

Crows9011d ago

I was thinking the same. Dreamcast had incredible games in such a short amount of time. It was truly exceptional.

darthv7210d ago

...and yet all those great games were not enough to sway people from the looming release of the PS2 at the time. Sony just has that kind of brand loyalty.

Cacabunga10d ago

Darth

I do not agree.. Sony had even better games thanks to an unprecedented 3rd party support..
DC had amazing lineup but 90% were arcade games..

88310d ago

@darth:
And Sony showed off "The Emotion Engine" and their real time demos that made everyone think they would miss out on REAL next gen 128bit magic if they jumped in before PS2s polygon pushing monster (and early lack of anti-aliasing with a healthy heap of shimmer + DVD playback) stepped up. PS2 was a fantastic system though with amazing games.

+ Show (1) more replyLast reply 10d ago
blacktiger11d ago

That's not true. Just because Microsoft has the money doesn't mean Microsoft can allow xbox to bleed entire Microsoft money. It doesn't work like they. Also SEC will be watching and investor won't allow it. Lot of reasons why Microsoft can not continue even if they wanted to. SEC regulations is expensive.

fr0sty10d ago (Edited 10d ago )

Exactly this... Microsoft is a publicly traded company, mostly owned by their shareholders (Approximately 59.24% of the company's stock is owned by Institutional Investors, 7.73% is owned by Insiders and 33.03% is owned by Public Companies and Individual Investors.). Their shareholders call the shots on the business decisions, and their shareholders want one thing and one thing only, for their stock price to go up. Losses do not make stock prices go up... so if the division continually posts losses on hardware, but shows profits on software and services (which has been the case with Xbox its entire lifespan, for over 20 years now), the shareholders are going to grow impatient and demand they stop making hardware and focus on the only thing that has ever made them money, software and services.

When Microsoft bought Blizzard and Activision for almost 100 billion, I knew that was the nail in the coffin for Xbox as a console... as the shareholders were going to expect a quick return on that investment, and when it didn't materialize, they were going to be out for blood... out to force Xbox to sell those games on as many consoles as possible, "and while you're at it, sell those first party exclusives that aren't selling well on other consoles as well... hell, just stop making consoles and sell games."

If there is another Xbox console generation, it will definitely be the last, but I doubt there even will be one at this point. I think the Xbox division planning on it just in case, but I don't think the project has been greenlit from Microsoft itself. The rumors that they have not yet even secured the chips needed from the chip fabrication facilities ties into this.

shinoff218310d ago

While I usually agree with you . Alot of what was said can just also be asked before any of that.

How long will the shareholders wait? It doesn't appear long at all

Babadook710d ago

I think I get your point. Like just because MS has money does not mean they are content to throw it away on a dying ecosystem. Xbox has to be profitable or “what’s the point?”

ifinitygamer10d ago

Money bags, yes, but are we ignoring that Xbox actually makes a profit on games and GamePass? Hardware is often a loss leader, and they're probably making profit 4 years into the life cycle, but games and services revenue have been very profitable while other parts of Microsoft's business is struggling. Say what you will about the quality of those games, of course, but this is kind of a reverse Dreamcast situation, where the console was dragging down the company and put it at risk of shuttering entirely. Killing that console saved the business and allowed it to continue to make games on multiple platforms. In this case, the service is very profitable, as are the games, and they're also double-dipping into Multiplatform to extend this further, while their hardware is just sort of what they believe to be the best for gamers and their own titles (whether that is the case or not...)