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Microsoft’s Xbox revenue plummets

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It’s time for next-gen, and I think Microsoft agrees. According to their latest earnings report, Microsoft is now making considerably less cash from the Xbox than it was just a year ago. How much less? Oh, just about $1.1 billion.

"Xbox 360 platform revenue decreased $1.1 billion or 29%, due mainly to lower volumes of consoles sold and lower video game revenue, offset in part by higher Xbox LIVE revenue,” Microsoft said in its report. “We shipped 5.9 million Xbox 360 consoles during the second quarter of fiscal year 2013, compared with 8.2 million Xbox 360 consoles during the second quarter of fiscal year 2012. Video game revenue decreased, primarily due to $380 million of revenue deferred associated with the Video Game Deferral."

It’s probably worth noting that Microsoft has decreased it’s advertising spend for the Xbox and its games by $92 million, or 21 per cent in that same period, although that’s probably to be expected considering they have just one game to market.

The good news is that this probably points, as rumours suggest, to a next-generation Microsoft console coming soon. Well, that and the fact that Microsoft’s poured an extra $100 million in to research and development within the Entertainment and Devices Division.

Still, while the Xbox is making considerably less money, it’s still in a better spot than the PlayStation brand as a whole, which is struggling to make any money at all – despite being the top selling HD console globally.

Last Updated: January 28, 2013

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