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Xbox Sales In Decline As Next Generation Looms

R&D spending healthy, next year should look better.

Microsoft has published its latest quarterly financials. The short story is that revenue has declined while profits have risen for the Entertainment and Devices Division that houses the Xbox wing. That’s partly due to a cut in the marketing budgets leaving a lot of profit unmolested while a slide in sales of their home console generated less income to begin with.

The Xbox 360 shipped 5.9 million units in the three-month period. That’s a decline from 8.2 million in the same period last year. The Entertainment and Devices Division made $3.8 billion in revenue, an 11 per cent drop on the same period last year. Specifically relating to the Xbox, they made $1.1 billion less.

It’s not exactly breadline stuff for the company though – they still managed $21.5 billion in revenue and $6.4 billion in profit.

The company’s research and development costs for the quarter were $98 million, some of that must have gone towards developing the new generation of Xbox console, due to be announced quite soon (we hope).

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15 Comments
  1. LTG Davey
    andUandU
    Since: Aug 2008

    Hardly surprising. Apart from Forza Horizon there hasn’t been a noteworthy 360 exclusive in, well, probably a couple of years.

    Comment posted on 25/01/2013 at 11:44.
    • LTG Davey
      andUandU
      Since: Aug 2008

      Oh and Halo 4 *duh!*

      Comment posted on 25/01/2013 at 11:45.
    • Peter Chapman
      Team TSA: Editor
      Since: Forever

      Halo 4 this year, Forza, Halo and Gears games going back. Aside from that and Kinect, it’s been very slow from MS for 2 years.

      Comment posted on 25/01/2013 at 11:47.
      • LTG Davey
        andUandU
        Since: Aug 2008

        Tell me about it, heh. The 360 is my main console at the moment (until the Wii-U finds it’s feet) so the lack of releases has been very noticable to me. I’ve lost count how many times I’ve played through my older games waiting for something fresh to come along.

        Comment posted on 25/01/2013 at 11:55.
      • Eldur
        Member
        Since: Nov 2012

        ‘Lack of releases’ seems a bit unfair and playing through your back catalogue is downright bonkers.

        2012, for me at least, was one of the richest years for gaming in a long time. Admittedly there haven’t as many Xbox exclusives this year when compared to others, but the wealth of third party titles (as well as a few excellent exclusives) has made my gaming library groan under the weight of all the unplayed games.

        Dishonored, XCOM, Halo 4, COD:BO2 (I know), Assassin’s Creed 3, Trials Evolution, Forza Horizons, Deadlight… The list goes on and they’re all worth playing.

        Comment posted on 25/01/2013 at 12:18.
      • yiddo
        Member
        Since: Jun 2010

        JBoo is telepathically telling me to tell you the following.

        Get a PS3.

        Comment posted on 25/01/2013 at 12:22.
      • LTG Davey
        andUandU
        Since: Aug 2008

        @Eldur – Sorry, I was talking specifically about 360 exclusives. Obviously there were plenty of third party titles released during 2012 but nothing that couldn’t be played on PS3 or PC instead.

        Comment posted on 25/01/2013 at 12:31.
      • kjkg
        Member
        Since: Apr 2010

        Like Yiddos comment.

        Comment posted on 25/01/2013 at 12:37.
      • KeRaSh
        Member
        Since: Nov 2009

        Don’t forget XBLA. They seem to get most of the nice things over there.

        Comment posted on 25/01/2013 at 13:05.
  2. The Lone Steven
    Never heard of him.
    Since: May 2010

    Not surprised considering the amount of support that MS seems to give the 360 of late. In fact, are there any exclusives coming out this year for it? As i can’t remeber if there is. :O The 360 seems to be past it’s prime and now spends most of it’s time asleep before yelling at the young folk to get off it’s lawn. Can see the Xbox 3 being released next year as i suspect MS won’t want to risk losing more ground to Sony by waiting for them to release the PS4.

    Comment posted on 25/01/2013 at 12:29.
    • LTG Davey
      andUandU
      Since: Aug 2008

      Gears of War Judgment is coming out soon, though it doesnt look all that great. Really disappointing to see them effectively drop the main aspect people bought their consoles for: the games!

      Comment posted on 25/01/2013 at 12:32.
    • Kris Lipscombe
      Team TSA: Writer
      Since: Mar 2009

      There’s Gears of War: Judgement, but that’s the only big thing.

      Also surely the next Xbox will release this year, releasing next year would be even crazier.

      Comment posted on 25/01/2013 at 12:37.
  3. DirtyHabit
    Member
    Since: Forever

    It always makes me think when I read articles like this.

    Is it just me being nieve, or is reason that (in this case) xbox sales are on the decline is because the people who buy them have already got one….!

    Comment posted on 25/01/2013 at 13:18.
  4. aerobes
    Member
    Since: Aug 2009

    Ooh, if sales drop off a bit more and the new unit is announced, I’ll definitely buy one cheap. Big selection of games I want!

    Comment posted on 25/01/2013 at 13:32.
    • blast71
      Member
      Since: May 2012

      Yoda you sound like, very much comment with ;p

      Comment posted on 25/01/2013 at 20:09.

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