Microsoft Q1 Report: Xbox sales down 17%

Microsoft Q1 Report: Xbox sales down 17% - 2015-10-22 17:27:45
| Oct 22, 2015

Reports from Microsoft Q1 results are in and things are looking very mixed for the Software Giant.

The good news for the Xbox division is that Xbox Live revenue has increased 17%, driven by both higher volumes of online transactions and revenue per transaction.  Video game revenue also has grown 66% helped by the recent accusation of Minecraft. Xbox Live monthly active users has also grown 28% to around 39 Million

Things where not all good though, with the hardware revenue decreasing 17% due to lower sales of the Xbox 360.

The Personal Computer segment of Microsoft (that includes Windows and Xbox), reported $9.4 billion in revenue, down 17% year over year. Also

Revenue in the entire sector decreased $1.9 billion mainly due to lower revenue from Devices and Windows, offset in part by higher search advertising revenue. An unfavorable foreign currency impact of approximately 4% also affected the division.

Microsoft reported Net income for the quarter ending September 30 totaled $4.62 billion compared to $4.54 billion year-over-year.

Overall revenue fell $20.38 billion from $23.20 billion year-over-year.

Amy Hood, executive vice president and chief financial officer of Microsoft outlined that “We’re pleased with our operating results this quarter. With financial discipline and strong execution, we grew operating income by 11 percent in non-GAAP constant currency,”

This all makes sense, since Microsoft has been in a state of transition since the release of Windows 10. The Xbox is legging behind the PS4 in overall sales, but is still showing solid numbers for a new console. We will need to wait and see how the next quarter looks with Windows 10 being more ubiquitous with Windows users.