Microsoft Revenues Down on Lower Xbox 360 Sales

January 25, 2013 -

Microsoft's Entertainment and Devices division raked in $3.8 billion in revenue during the last three months of 2012, the company announced today. That number represented an 11 percent decline compared to the same period a year ago. The division is responsible for Windows Phone, Xbox and other devices. While revenues were down, so were marketing cost which made it easy for the Entertainment and Devices division to record a pre-tax profit of $596 million - a 15 percent increase over the same period a year ago. The Xbox 360 generated $1.1 billion less than last year - a 29 percent decrease - on 5.9 million Xbox 360 consoles shipped during the period. That number was down dramatically from last year's 8.2 million units.

"This was due mainly to lower volumes of consoles sold and lower video game revenue," the platform holder said.

As a whole, Microsoft reported $21.5 billion in revenue and $6.4 billion in profits.

With the Xbox 360 at or near the end of its life cycle, the decline in sales and software comes as no surprise to anyone. GDC or E3 will prove to be an important moment for Microsoft to reveal its plans on its next-generation system.

Source: CVG


Comments

Re: Microsoft Revenues Down on Lower Xbox 360 Sales

People don't want to buy a special box just for ads. 'Nuff said. Well, I guess it does have a secondary purpose - to make gaming more difficult and expensive.

Re: Microsoft Revenues Down on Lower Xbox 360 Sales

Being that the Xbox 360 is at the end of its life span is just an excuse since the Sony Playstation 2 was selling well into this console generation.

Fact is

- NGE was a horrible update that forces ads onto all people even paying customers

- You still have to pay to play online and use features on Netflix when on the PS3 this feature is free

- Compared to Playstation+ Xbox Live has no real value

- Xbox Live still uses MS Points instead of showing real money.

- The system was released defective

- Every couple of years Xbox Live switches from allowing you to cancel your membership online to forcing you to call India.

- Unlike the Playstation 3 which is compatible with all Blue Tooths and laptop HDDs you need to use over priced first and third-party tools to get an HDD, and Blue tooth.

 

The only Value MS Live once had was it operated servers for Xbox Live games and supported them but like EA it eventually starts shutting down servers as new games are released even with those servers are insanely popular.

The only reason why the Xbox 360 had a huge head start was because of Sony Japan's horrible launch strategy which told us we should get two jobs to afford their system.  Not to mention exclusive contracts for DLC but the system is defective and still has problems. I have bought at least three Xbox systems and two of the three eventually failed.  Between horrible billing and horrible system problems I changed over the PS3 in 2009 and sold all my Xbox consoles for myself and kids in 2010.

There is no real value in Xbox Live they need to make a huge change.

Re: Microsoft Revenues Down on Lower Xbox 360 Sales

Now that I think about it Nintendo did ditch the points system for an actual dollar amount with the release ofthe 3DS Eshop and now on the Wii U, meaning Microsoft is the only group still doing it.

 

ANd I had no idea Ntflix streaming wasn't free on the 360.

Re: Microsoft Revenues Down on Lower Xbox 360 Sales

If you do not need subscription to watch Netflix then they changed something because you needed a Xbox Live subscription just to be able to use Netflix in the past. Netflix announced that the PS3 is the best platform they are on with the most users.

Re: Microsoft Revenues Down on Lower Xbox 360 Sales

"I have bought at least three Xbox systems and two of the three eventually failed.  ...and sold all my Xbox consoles..."

How did you sell two broken Xbox 360s?

 

Andrew Eisen

Re: Microsoft Revenues Down on Lower Xbox 360 Sales

They were replaced by MS with the warranty because of the Red Lights of Death

Re: Microsoft Revenues Down on Lower Xbox 360 Sales

If MS replaced them, why did you keep buying new ones?

 

Andrew Eisen

Re: Microsoft Revenues Down on Lower Xbox 360 Sales

Funny thing about the PS3 and Xbox 360 they both are doing things the opposite way.

To where the 360 released its first version of the system defective and improves on the design as she goes. The Playstation 3's first version was arguably the best version and every other version since gets worse.

I've bought three Xbox Versions the original, the Elite and the sweet black version when it came first bundled with the Kinect.

I kept staying with the 360 due to my resistance to the horrible PS3 early marketing. After 09 I bought a PS3 and it slowly became my main console. I tried the last version of the Xbox but after billing problems among other things with MS I decided I had enough. A person only can take so much abuse from a company to where a diehard fans decides to part ways.

Oh the systems they replaced for the first two ended up dying as well.

Funny thing the system I ended up with a pure dislike for became my favorite because of easiness and the fact I ended up spending more money on the 360 and Wii then my PS3 since it comes with a USB charger and a bigger HDD costs less then 100 bucks at Best Buy or Newegg.

All in all you get more bang for you buck when you go with the PS3.

Re: Microsoft Revenues Down on Lower Xbox 360 Sales

In what seems to be the opposite experience to most, mechanical reliability is the one positive thing I've had with my Xboxes. I bought a second one only because I upgraded to a high-def TV and wanted HDMI. I've had it for years without any problems.

I gave the original one to a mate, but he did eventually get the RROD. He got a kit and fixed it though.

 
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