Microsoft Reports Decline In Xbox Sales, Increase In Xbox Live Revenue

#1Dev445Posted 10/24/2013 8:13:17 PM
by Mike Futter

Microsoft has announced its company-wide first quarter 2014 financial performance. The company saw a decrease of 3 percent in operating income to $6.4 billion, but significant revenue amounting to $18.6 billion (up 7 percent year-over-year).

As Microsoft prepares for the release of the Xbox One in just under a month, the company is reporting a decrease in Xbox 360 sales from 1.7 million units last year during this quarter to 1.2 million units (29 percent decrease).

By contrast, Xbox Live transactional revenues are up 25 percent. Microsoft's Surface tablets contributed $400 million to the segment it shares with the Xbox brand.

http://www.gameinformer.com/b/news/archive/2013/10/24/microsoft-reports-decline-in-xbox-sales-increase-in-xbox-live-revenue.aspx
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#2Foxx3kPosted 10/24/2013 8:23:50 PM
It still seems like such a terrible idea that the "Surface" project is under the same branch as Xbox.
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#3teehee23Posted 10/24/2013 9:00:21 PM
Go, Microsoft, Go!
Mo' money 4 u.
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#4Orange_ApplesPosted 10/24/2013 9:10:37 PM
Foxx3k posted...
It still seems like such a terrible idea that the "Surface" project is under the same branch as Xbox.


As are Windows Phones.

Surface tablets are pretty odd to be putting with the Xbox brand considering it is a Windows 8 device akin to laptops. Perhaps they were doing it that way so that Phone and Surface sales can be buffered by the Xbox Live income so they don't seem as bad as they are.
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#5Excal1burPosted 10/24/2013 9:33:10 PM
I don't feel like looking, but isnt Skype in the same division as well?
#6DesperateMonkeyPosted 10/24/2013 9:41:59 PM
Does this mean there is 25% more XBL subscribers or something? Man XBL makes a lot of money. No wonder they spent like $10 billion on servers... they make way more than that in a year.
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#7Xeeh_BitzPosted 10/24/2013 11:28:34 PM
Excal1bur posted...
I don't feel like looking, but isnt Skype in the same division as well?


Yes
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#8Spetsnaz420Posted 10/24/2013 11:55:07 PM
Its not all that surprising...

Current gen console sales plummet in anticipation for next gen this year but Gold subs rise because people are buying in preparation of the next system that needs it.

I would be surprised if Sony wasn't looking at similar stats (percentage wise at least)
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#9Styrof0amPosted 10/25/2013 12:07:47 AM
More numbers here, and expectations of XB1 increasing revenue come next quarter.

http://www.gamesindustry.biz/articles/2013-10-24-microsoft-posts-record-first-quarter-revenues?


DesperateMonkey posted...
Does this mean there is 25% more XBL subscribers or something? Man XBL makes a lot of money. No wonder they spent like $10 billion on servers... they make way more than that in a year.

It's Xbox Live transactions, so it can be anything from DLC sales to new subscribers.
#10yanksfan4247Posted 10/25/2013 4:35:57 AM
Weird, Gameinformer says Microsoft saw a decrease in operator income, but doesn't say they saw an increase in net income.

From The Verge:

Microsoft has published its Q1 2014 earnings report, revealing that it made $5.24 billion in net income on $18.53 billion in revenue. Both are increases from this quarter last year, when Microsoft saw $4.47 billion in net income and $16.01 billion in revenue. "Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers," CEO Steve Ballmer says in a statement
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