Home Gaming Xbox hardware sales are down 33%, but monthly active users are up

Xbox hardware sales are down 33%, but monthly active users are up

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Xbox-One

Quite some time ago, Microsoft stopped reporting on console sales figures – so we have no real indication of how many Xbox Ones are in the wild. With the imminent release of the slimmer Xbox One S, we should expect a decent rise in consoles sold. That, should hopefully, offset the current doldrums the Xbox division finds itself in.

According to Microsoft’s latest financial statements (ending June 30) the company as a whole is doing pretty well, with an annual revenue of $85.3, netting a profit of $16.8 billion according to generally accepted accounting practices.

The “More Personal Computing” segment which houses the Xbox brand is doing just okay though, declining year-on-year by 4% in revenue. That’s largely attributed by a 33% drop in Xbox hardware revenue over the year. While that may, to some, indicate poor performance of the Xbox One, Microsoft attributes the drop to lower sales of the Xbox 360 as well as lower pricing on the Xbox One.

The monthly active users that Microsoft loves has actually increased by 33% reaching 49 million users which has increased Xbox Live income by 4%, helping offset the hardware decrease. A little. Overall, gaming revenue has decreased 9% year-on-year.

  • Xbox Live monthly active users grew 33% year-over-year to 49 million
  • Gaming revenue decreased $152 million or 9%, primarily due to lower Xbox hardware revenue, offset in part by higher revenue from Xbox Live. Xbox hardware revenue decreased 33%, mainly due to a decline in consoles sold and lower prices of consoles sold. Xbox Live revenue increased 4%, driven by higher volume of transactions and revenue per transaction.

Do you think the Xbox One S will help prop up Microsoft’s gaming revenue until the release of Scorpio next year?

Last Updated: July 20, 2016

7 Comments

  1. Fox1 - Retro

    July 20, 2016 at 09:43

    This is a sore sight for MS who had their strongest exclusive line-up in history. I’ve noticed no aggressive marketing strategies from MS since the XBox One first launched. It’s like every day that Spencer goes to work, it’s to clean up the mess that Mattick created.

    Reply

    • Hammersteyn_hates_Raid0

      July 20, 2016 at 09:49

      Scorpio should help clear their names if they market it correctly

      Reply

  2. Original Heretic

    July 20, 2016 at 09:45

    Xbox users “in the wild”?!?! HAHAHAHAHAHAHA!!

    That’s like wondering “How many cows are out there, wild and untamed, roaming the plains in great numbers?”

    Reply

    • Hammersteyn_hates_Raid0

      July 20, 2016 at 09:49

      hehe Mooo

      Reply

  3. Hammersteyn_hates_Raid0

    July 20, 2016 at 09:49

    Active users that Microsoft loves has actually increased by 33% reaching 49 million users which has increased Xbox Live income by 4%….
    I’m no expert but the math seems off on this one, Either that or everyone is sticking to F2P games

    Reply

  4. K1FF J1MB0B (sizzle edition)

    July 20, 2016 at 10:08

    In my opinion any Xbox console that has a “One” in the name somewhere is going to perform poorly. At this point the only thing that can turn it around for them is if they dub the “Scorpio” is a whole new system and ditch the “One” brand.

    Reply

    • Alien Emperor Trevor

      July 20, 2016 at 11:06

      They’d probably end up calling it the Scorpi-One.

      Reply

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