Microsoft Rakes in $21.7B, But Xbox Sales Are on the Decline
After reporting its third quarter earnings for the 2015 fiscal year, Microsoft revealed that the company is doing well, despite Xbox unit sales dropping.
Polygon reports that Microsoft has revealed its earnings for the third quarter of the 2015 fiscal year, showing some very interesting figures. As expected, the Big M raked in billions, $21.7 billion in revenue during the third quarter to be exact, yielding a net income of almost $5 billion. Unfortunately, the net income was slightly down compared to this period last year. In regards to its Xbox division, Microsoft admitted that its console and hardware sales were down. This would make sense given that the Xbox One came out towards the end of 2013, and it was still a very hot item to get throughout the early parts of 2014. As you would expect, sales would eventually slow down. Not to mention players were scoring games to play on their new systems as well. Titanfall's sales likely factored into this quarter for last year's revenue, while Xbox didn't have a major Xbox One exclusive during this time.
We should note that Microsoft is still not differentiating between Xbox One and Xbox 360 console sales (just lumping them together as Xbox sales), likely because it helps bridge the massive gap between the PlayStation 4 and Xbox One's sales. Microsoft reports that last year it sold 2 million Xbox consoles during this quarter, and this year they sold 1.6 million. This is including Microsoft's $50 price reduction in the Xbox One, which wasn't in play last year. The Big M does admit that Xbox Live usage has grown over 30 percent during this time, but that's not really helping in light of its gaming hardware's revenue dropping $72 million for the quarter. Luckily, Microsoft's Surface sales helped balance things out a little for its hardware division.
It looks like Phil Spencer and Xbox will have to break out the big guns at E3 2015, and we're only six weeks away.