Xbox Sales In Decline As Next Generation Looms

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.

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

    • Oh and Halo 4 *duh!*

    • 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.

      • 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.

      • ‘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.

      • JBoo is telepathically telling me to tell you the following.

        Get a PS3.

      • @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.

      • Like Yiddos comment.

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

  2. 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.

    • 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!

    • 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.

  3. 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….!

  4. 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!

    • Yoda you sound like, very much comment with ;p

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