The Xbox One isn’t doing poorly. It’s selling faster than the Xbox 360 was at this point in the generation. However, as soon as you compare it to the PS4’s runaway sales, it looks much less impressive. In fact, the sales for Xbox One are dropping, as is the brand’s revenue.
While reports are siting that Microsoft’s Xbox revenue has dropped by $306 million due to a price reduction on Xbox One, it’s worth noting that despite the price drop, fewer Xbox consoles were sold in the third quarter. There was a 20% volume decline; Microsoft shipped 1.6 million Xbox consoles in the third quarter as compared to 2 million last year.
It’s worth nothing, though, that Microsoft still refuses to differentiate between Xbox One and Xbox 360 consoles in these figures. Presumably, the Xbox 360 sales are plummeting, bringing down these numbers even further. It’s hard to say the ratio of Xbox One units shipped to Xbox 360 units, but I think it’s fairly safe to say that we’re seeing a growth in Xbox One units purchased compared to Xbox 360s.
While console revenue is dropping, Xbox Live usage has grown over 30%, driven by more users and deeper user engagement (so, Gold?). Similarly, it’s all about the services for Microsoft on the whole:
Around the world we’re seeing high interest in deployment of our cloud and server products, as well as participation in the enterprise early adopter program for Windows 10.
Everyone wants the cloud, it seems. Still, it’s worrying to see Xbox sales slipping despite numerous price drops on the Xbox One. Perhaps if they distinguished between old and new consoles we could see that this is all based on phasing out of old technology, but that the moment it just seems to reflect poorly on the company. Come on, Microsoft, stop playing with the numbers and just come out and tell us how many new consoles you’ve shipped and if that number is climbing. I’m tired of reading between your blurred lines.
Last Updated: April 24, 2015