Xbox Live transactional revenue up 25 percent

Microsoft reveals figure in latest earnings report; 1.2 million Xbox 360s sold during the period.

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Xbox Live transactional revenue was up >25 percent during the quarter ended September 30, Microsoft announced today as part of its latest earnings report. Specific sales numbers were not provided.

Xbox Live transactional revenue continues to grow this year. By comparison, for the quarter ended June 30, this revenue rose by 20 percent.

Microsoft also announced today that it sold 1.2 million Xbox 360 consoles during quarter, down from 1.7 million systems a year ago.

Overall, Microsoft's Devices & Consumer Hardware sector posted revenue of $1.48 billion, compared to $1.08 billion last year. This growth was attributed not to Xbox, but Surface, which added $400 million to the sector. Xbox figures are also counted in Microsoft's Devices & Consumer Hardware Other business unit, which recorded revenue of $1.64 billion, compared to $1.4 billion last year.

Total Microsoft revenue for the quarter was $18.53 billion, compared to $16 billion last year. Microsoft posted a profit of $5.24 billion during the quarter. The Xbox One launches on November 22.

Discussion

70 comments
moesuir
moesuir

ROFL! I guess this is why they can afford 300,000 servers while Sony sure as hell can NOT. Good job M$$$$$$$$ :)

Hellhound30x
Hellhound30x

ROFL! I wonder how much Microsoft paid for this story.

Hurvl
Hurvl

"Xbox One is the rumored next generation console from Microsoft." Might wanna change/remove that from your info box to the right, since it's just a tad bit outdated by now.

IanNottinghamX
IanNottinghamX

This the core of the negatives about the Xbox brand as it stands. They talk about the cloud...do you think the cloud will be free for Xbox live users who use Xbox One...Somehow I seriously doubt it. Sony does the same thing but with them I get the sense they care a little more about the gamer and aren't willing to compromise what gaming(or rather they are less willing to compromise than Microsoft is) is to make money.

Queuingreturns
Queuingreturns

All that money and they can't make a console to compete with PS4.

Pathetic.

Sony will smash them after the launch of the PS4. ; )

cammeyz
cammeyz

Well i did spend all my m$ points on my live account, in prep for my move to the Psn next month.

inspectercoley
inspectercoley

Is this because they now make more money by not converting the currency correctly when they switched from points?

andmcq
andmcq

Microsoft may not have migrated Windows to the internet fast enough, or convinced people that Windows XP needed to be upgraded but they sure as shit made some good decisions with the Xbox branding and entering the console race.

roleplayer2004
roleplayer2004

Microsoft know how to rip people off. Time to invest in Japan.

bunchanumbers
bunchanumbers

not the biggest ms  fan but W8.1 was better than I thought. I would have preferred a classic mode for the start button. Maybe the menu system for X1 will be as neat.... hopefully less advertisements.

angrycreep
angrycreep

That's a lot system sold. I think prices for a Xbox 360, are extremely low and people are just taking advantage of the low prices. I need a new Xbox 360 my self, because the one I have is one of the original Xbox 360, and is really loud. I will be picking one up for black Friday for sure this year.

s_h_a_d_o
s_h_a_d_o

"Xbox Live transactional revenue continues to grow this year."

Not according to independent developers, for some of whom the switch to 'real-money' transactions has seen a significant downturn in sales on XBLA.

dmastor
dmastor

I don't get it 1.2 million sold and next gen around corner? 

vader501st
vader501st

Wow, all that because I just got Mass Effect 3: Citadel as a goodbye to this gen? lol

Grenadeh
Grenadeh

@IanNottinghamX Are you joking? It's part of Xbox Live. You don't have to pay a second extra fee to add Cloud to your XBLG account.

sladakrobot
sladakrobot

@IanNottinghamX If a game uses the cloud for its features(multiplayer or similar) of course its for free.
Right now i can use the cloud(max 512MB) to copy my gamesaves into and when at friends home,to use that savefile on his console.It was for free for gold members.

But if MS start to offer games via stream like Sony,then i expect to be charged for that service.

minerl99
minerl99

@Queuingreturns 

Can't compete?  In Sony board meetings they don't share your opihion.

The first generation they competed in market share worldwide it was Sony 80 vs Microsoft 20.

This past generation it is now Sony 50 vs Microsoft 50.  In business terms, that's a disaster.  I guess you consider it a victory.  Hardly.  Heads roll for a performance like that in the real world.

This generation the players haven't even taken the field yet, but Queingreturns say's Microsoft can't compete.  Laughable.

Things have changed dramatically since Reveal and E3.  This battle hasn't even started yet.  7 years is a long time.  Cool your jets.  :-)

arqe
arqe

@inspectercoley That would be wrong. If they change the currency and give "More" value to it they just lose money on it. So thats not the point. And without money it would be less normally because lets say you want a skin so bad that is 800 Points , but there is no 800 points there is 1200 so you have spent more and buy the 1200 and spend the 800 only.

Now you pay only the correct price. No need to pay more and get more for something you want cheap.

Grenadeh
Grenadeh

@andmcq Windows has been internet capable for as long as the internet has actually been viable for  businesses and consumers. Excluding Windows 3.1, really. NT made things easier, it didn't make them possible.

blue_shift_91
blue_shift_91

@roleplayer2004 

people are free to spend however they want. you should look into just how well sony and japan are doing. might not want to "invest" your money in a sinking ship.

Grenadeh
Grenadeh

@bunchanumbers Get a third party start menu. That's the point of having Windows - you can customize it. Not as much as Linux but still.

ominous_prime
ominous_prime

@bunchanumbers There are apps you can get for Windows 8 that will simulate what the start button was like on older versions of Windows. I like that Windows 8.1 takes up less hard drive space!

ominous_prime
ominous_prime

@angrycreep I picked up the newer XBOX 360 that looks similar to the XBOX One. It is SO quiet that you can hardly tell when it's on! I had to finally replace our launch console because the hard drive was starting to conk out. A new warranty on the version that has pretty much remained very low percentage of RROD is a good idea since there isn't any BC with XBOX One.

Grenadeh
Grenadeh

@s_h_a_d_o 

BS.

That's even aside from the fact that sales of indie games on XBL are NOT an indicator of overall revnue. Have you seen the indie games on XBL? Honestly, have you? Outside of major titles like Don't Starve, Hotline Miami (which isn't on XBL?), Terraria, Braid, Spelunky, and shit like that, indie games in general are not appealing and are not worth the price you would have to pay on XBL or PSN.

The indie game scene is prevalent on PC and will stay that way. Know why? Because there are TOO MANY indie games released in the first place, most of which have no outstanding factors to differentiate them from the crowd, and because people are sick of them. Platformers died out for a reason with the advent of 3D. Yes, many of them were amazing, but the fact is they don't offer that much gameplay. And a gigantic chunk of indie games ARE platformers.

The rest are puzzle games, which were never a huge market in the first place; horror games - which the market is absolutely flooded with so badly that you can't even name a lot of them. Haunted Memories, Montagues Mount, Amnesia TDD, Amnesia MFP, Outlast, The Orphanage, Eleusis, Doorways, etc; and hybrid genres, almost all of which are 2D games of one sort of another. A lot of them are good, but there are simply too many to play or even care about. That's why indie games don't sell on Xbox. On PC you have Steam and you have 19 different bundle websites that will give you almost every indie game ever made for free or for 5 dollars for 10 of them.

So, no. It has nothing to do with changing to real money.

A8ADD0N
A8ADD0N

@s_h_a_d_o 

Source? I don't see how that would have an effect on sales of indie games when everywhere else has had real-money transactions all along.

ominous_prime
ominous_prime

@dmastor This happens quite a bit towards the end of a console cycle. People with more patience than dollars start buying games when a new console launch is set to pick up games and systems at affordable prices. Often it's parents with young children that do this, because little Jimmy won't know the difference.

A8ADD0N
A8ADD0N

@dmastor 

Yep. There is no better time to buy a console than at the very end of the generation when they are super cheap and there is a massive catalogue of games to play.

Grenadeh
Grenadeh

@minerl99 Further, like all fanboy ignoramuses, he willingly chooses to see the reality of the situation. Microsoft is fucking MICROSOFT. Sony is Sony, a pissant Japanese company that despite being far older than Microsoft, brings in literally a 50th of it's income on a yearly basis. They are only competitors in one market: electronic entertainment.

Microsoft easily competes with them and has done so for the past 11 years. If Microsoft had gotten into the console market the same time Sony did 18 years ago, the story would be dramatically different. Considering Sony has 7 years on them, MS has done a fantastic job.

inspectercoley
inspectercoley

@arqe @inspectercoley No as in the conversion from points to money gives you less than if you bought the points themselves. If I can get 2100 points for £17 that's £6.48 for an 800 point game.

Now an 800 point game cost £6.75

Also $9.99 in pounds is £6.17. So in both ways UK lose.

Grenadeh
Grenadeh

@blue_shift_91 @roleplayer2004 Japan has been in a recession for years and it's not getting better. For example, in the video games industry, Capcom and Sony themselves are both bleeding profusely. Sony is making profit, yea, but not a lot.

Grenadeh
Grenadeh

@ominous_prime @angrycreep I may have to get one of those to be honest. Does it use the same hard drive so I could swap? My Xbox isn't loud but it is annoying, I guess.

okassar
okassar

@A8ADD0N @dmastor It depends on who you are and how much you value gaming vs. other activities. Personally, I just don't feel good playing "old" stuff. Think about it. many here have been playing HD games online with my friends since 2006 and some people are just now going to start experiencing that. Is that worth saving 200 dollars? Don't count game prices in, because you can wait just 1-2 years and get games super cheap anyway. I got most of my games used for an average of 15 dollars on Amazon.

dmastor
dmastor

@A8ADD0N @dmastor True I just got my PS3 but 1.2 million consoles boy that alot on-line you swear xbox is the worst to these sony worshipers  

vader501st
vader501st

@Pr0ving4Gr0undz Unfortunately not, and even though it's pretty pricey, I spent all day long playing it. It's certainly the longest and best of the bunch.

Grenadeh
Grenadeh

@darkrayne @sladakrobot @IanNottinghamX If you have Xbox and don't have Gold, you aren't an Xbox player. It's absurdly stupid and a waste of the console if you're going to have it and not use the online features - especially cloud saves. I understand if you're only into single-player, but for a lot of games, that's just silly. There are plenty of PS2 games you can play in that case.

moesuir
moesuir

@Grenadeh @minerl99 good point, MS was the LAST to come into the race, but yet they destroyed Nintendo. And are easily competeing with Sony who had a 7 year "lead advantage".

arqe
arqe

@inspectercoley @arqe No the "Retail Price" of 800 points is "£6.80" , not talking about sources out of Microsoft.

ominous_prime
ominous_prime

@Grenadeh @ominous_prime @angrycreep What I did was hooked up my external hard drive via USB and just did a transfer. No special cables needed. The newer XBOX 360s aren't compatible with the older hard drives, but I don't know about the slim model hard drive compatibility. Once I got my new XBOX 360, I just transferred from my external hard drive into it with my old data. Not to hard, and it didn't take long.

A8ADD0N
A8ADD0N

@okassar 

Yeah I hear ya, and same here. I usually take the Amazon route with games, too. I got an Xbox 360 at launch (and intend on getting an Xbox One at launch, too) and a PS3 a little later when some good games started showing up for it. The small amount you save wasn't really an issue for me, personally, though I can understand how it would be for a lot of folks who are a bit less well off.