Xbox One and Xbox 360 Ship 1.1 Million Consoles Combined From April-June

Microsoft today announced its earnings for the three-month period ended June 31.

Microsoft sold in a total of 1.1 million Xbox One and Xbox 360 consoles during its fiscal fourth quarter (April 1 - June 30), the company announced today as part of its quarterly earnings report.

As has been common with the sales numbers Microsoft has provided for its gaming consoles this year, it's important to note that "sold in" refers to the number of consoles shipped to retailers. This is as opposed to the number of consoles actually sold through to consumers--a figure we haven't been updated on since Microsoft announced 3 million Xbox One consoles had been sold to consumers as of December 31.

The 1.1 million consoles shipped is a steep drop compared to the prior three months, when Microsoft shipped 2 million consoles (1.2 million of which were Xbox Ones). The company noted that it "drew down channel inventory" during this most recent quarter, referencing plans it announced in April to slow shipments in order to allow retailers to sell the consoles they already have on store shelves.

Without providing any specific figures, Microsoft announced last week that Xbox One sales had "more than double[d]" in June (as compared with May) following the release of the $400 Kinect-less model. That system went on sale on June 9 and brought the system's price down to that of Sony's PlayStation 4, which has outsold the Xbox One to date. As of April 6, the PS4 had sold 7 million units worldwide.

As part of its earnings report, Microsoft renamed its Devices & Consumer Hardware group, which will now be known as the Computing and Gaming Hardware group. Despite the name change, it will continue to include both Xbox and Surface. During Q4, the group posted revenue of $1.44 billion, a 23-percent year-over-year increase. That was thanks in part to a 14-percent increase in revenue for the Xbox platform (which accounts for the Xbox One and Xbox 360). Revenue for Microsoft as a whole was up 18 percent to $23.4 billion.

CEO Satya Nadella recently offered a showing of support for Xbox, though the platform was not completely unaffected by the layoffs outlined last week. Most notably, Xbox Entertainment Studios--the group responsible for developing original TV programming for Xbox--is being shut down. A select number of its projects (including Halo: Nightfall, the Halo TV series, and Quantum Break) will be unaffected.

In a formal statement today, Nadella briefly discussed the decision to refocus on gaming with Xbox One. "With our decision to specifically focus on gaming, we expect to close Xbox Entertainment Studios and streamline our investments in Music and Video," he said. "We will invest in our core console gaming and Xbox Live with a view towards the broader PC and mobile opportunity. I hope you can see that we have bold ambitions and we have made a lot of progress."

Chris Pereira is a freelance writer for GameSpot, and you can follow him on Twitter @TheSmokingManX
Got a news tip or want to contact us directly? Email news@gamespot.com

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Twitter/Xbox Live/PSN/Nintendo Network: TheSmokingManX

Discussion

1141 comments
the_new_guy89
the_new_guy89

As a software developer Microsoft should've focused on just that. They should've hired someone else to design the architecture and put their name on it..

Hurvl
Hurvl

"referencing plans it announced in April to slow shipments in order to allow retailers to sell the consoles they already have on store shelves" It sure is nice of Microsoft not to rush retailers to sell the consoles they already have, so that there's more room for new ones. That definitely doesn't mean that demand is low. Oh no, definitely not.

bandit7319
bandit7319

Ugh... this is driving me crazy.  It's like every week Microsoft is deciding not to pursue something from their original plan/strategy for the Xbox One to distinguish it from PS4.  Lame.


I'm still not planning on buying a PS4 for a long time though.  There haven't been any exclusives for it that I as a casual gamer have been interested in.  I may buy one once God of War is released as long as it's not like GOW Ascension.  But only if it's completely awesome.  

As far as my definition of a casual gamer... In the past 2 years, I've only played like 3 games lol.  Borderlands 2, Forza 5, and Dead Rising 3.  I can pick up these games and play for like 20 minutes then go do something else without worrying about some kind of story through the game.  Sure they have them... but I'm more interested in hunting legendaries and finding collectibles than story.

eyeball2452
eyeball2452

Doubling down on the core product is the correct strategy.  I just wonder how much harm 3+ years of focusing on non-game content and features has hurt the Xbox platform.  Big brands and summer movie marketing budgets don't get me excited for new games.  I haven't bought a Madden game in 10 years.  I love MW2 and AC2, but there is nothing from either those brands now that would peak my interest.


Don't show me hype.  Show me something new and interesting ... not the nth version of some tired franchise.

Shango4
Shango4

X360 had not been released in Europe for quite sometime unlike XB1, so the gap will keep shrinking in favor of X360, which will surpass XB1 sooner or later. There is no way XB1 can sell as many as X360 with that much bad publicity, without a price advantage and a year head start.

surrealme
surrealme

Sony had major missteps the first couple of years with the PS3. It was too expensive, they were sued for dropping Linux support and backward compatibility, and it took a pummeling in sales numbers for a long time. Then years later it edged out the 360 in total sales. What eventually saved it was some great games. People acting like it's over for the XB1 have learned nothing from history. It's games that move consoles and we're not going to know how all this ends up for about a decade. Gamespot really needs to stop fanning the flames of the "console war". It's turning this site completely toxic.

PayneKiller
PayneKiller

That's not looking very good..

I understand better now why they decided to drop the camera and have had all these sales on the console

shinta125
shinta125

This is a bad situation to be in. This is "the Xbox family" and shipped to retailers. We know that in Jan-March they shipped 1.2 million Xbox One's alone, and here they combined the shipment of both the 360 and One. So they have shipped significantly less Xbox One's.

bunchanumbers
bunchanumbers

There's anger, there's fury, and then there's fanboys. Its amazing how someone can turn good news for the industry they supposedly love and turn it into hate. 

oflow
oflow

The games will do the talking.

Sony's current strat is push indies, remasters and multiplatform games which will look better in most instances on the PS4.  Their AAA titles take forever to come out and always have. (According to the suits at Sony The Last Guardian is still a thing) Its highly probably that some of the PS4 AAA exclusives (bloodborne, deep down, uncharted 4) wont really come out til 2016. Seems like a safe bet for a company not really trying to spend a lot of developing games.

MS' strat is pushing out more AAA games sooner. 

So come the holiday season, the actual games will start to make a difference. Sunset Overdrive is going to sell big. Master Chief Collection is going to sell. Forza Horizon 2 is going to sell.

In the same time frame PS4 only has LBP3 coming out as far as big exclusives go.  Its a good game, but its also a niche game that a lot of people arent interested in.

So wait til the fall and we'll see.

nazgoroth
nazgoroth

So say Xbox ends (to please the Sony fanboys) this means less choice, which means Sony can up their prices. Thus everyone loses.

Fanboyism is a social cancer.

lostn
lostn

@Shango4 Very true. But it depends how desperate MS gets. They could start splashing cash at developers everywhere, either to secure exclusives, or cancel PS versions of the game (like TF), or exclusive DLC. It will cost a lot but if anyone has the cash to do this it's MS. Sony will not be able to match their payouts.

northArrow
northArrow

@surrealme You're correct about games saving the PS3, but if you're talking about learning from history then you need to look at the disappointing end to the 360's life cycle, in which Microsoft abandoned it for the final 3 years. Microsoft has always been a very lazy company and I wouldn't be in the least bit surprised if the X1 suffers the same fate the 360 did - Microsoft eventually growing tired of supporting it. 

We already know they don't have as many studios (both indie and AAA) working on games as Sony has, and this is why the upcoming release calendar shows the Xbox getting fewer than half of the games the PS4 will next year. 


If the Xbox One is going to turn its fortunes around like the PS3 did, it's going to require a lot of effort on Microsoft's part. I'm not convinced their willing to do it.

lostn
lostn

@surrealme The lawsuits had no merit and lost though. They had every right to remove Linux, it was in the T&C which everyone agreed to when they updated the console. If they chose not to accept it, they didn't need to update it, and they could keep their Linux.


No one sued them for dropping BC. That was a hardware revision. Nintendo dropped BC with the Wii mini. No lawsuits there either.

the_new_guy89
the_new_guy89

Not to mention at this same point in time of release, the XB1 is still outselling the 360; which also had a lot of bad press during its release. The PS4 is the total package this time however, with perfect timing. I think it'll hit those Wii numbers around 120 mil. While I think the XB1 will surpass the 360 with around 90 mil. I think Nintendo will release a new console mid cycle, putting them out of competition. Yes, I pulled those #'s out of my arse. I'm an Xbox fan, and I support this message! Lol

skiggy34
skiggy34

@surrealme Agreed!  The only reason ps3 sold so well after a few years is because a lot of 360 owners also bought ps3, I'm one of them.  The same will happen in years to come. Some people dont understand this but the Halo MCC will sell a ton of X1s specifically to people who impulsively bought a PS4 and are Halo fans.  Also 360 owners who have yet to jump next gen are just waiting for a reason to and the Halo MCC is one,.,,  This console war is faaaaarrrr from over.  Talk to me when the consoles reach 30 million, NOT 9 million or 6 million.

lostn
lostn

@PayneKiller No, according to MS logic, dropping Kinect will lead to more sales of Kinect than there would have been if they kept it in. More people will buy X1's and then they will be wowed by what Kinect can do and end up buying the Kinect separately. Yes that is what Spencer said.

lostn
lostn

@shinta125 The early adoption craze is over, so sales naturally will drop. PS4's sales have dropped also, but are still ahead.

nazgoroth
nazgoroth

It's a "talent" some people have. It's pretty unnerving.

lostn
lostn

@oflow You talk about Sony's remasters, and then you mention Halo Chief collection as their 'actual games that will make a difference'?


And I disagree that Sunset Overdrive is going to sell big. It looks very niche.

divinejester
divinejester

@oflow Are you that naive? Every single time, its something new that will finally push the xbox one ahead. First titanfall, then the removal of the kinect. Now we just need to wait for the winter push. I have nothing against the xbox one, but if titanfall and removing the kinect failed, and this was while Sony has pretty much no exclusives, I seriously don't think Forza, a rerelease of Halo, and sunset overdrive will do anything.


At this point MS is better of waiting for Godot.

skiggy34
skiggy34

@nazgoroth I dont think Sony fans truely want Xbox to disappear but they definitely get a high off of coming on these sites, especially in the xbox articles to brag about what their console is doing in its first year.  I happily own both consoles and would never put down the other. Yes my xbox one gets used 10x more than my ps4 and probably will for most of 2014. 2015 will probably be half and half but neither console is crap and the xbox one will pick up sales.  People are getting waaaay to ahead of themselves, especially when the playing field isnt even fair yet.  Lets revisit this next year at this time when BOTH consoles are available in 50 countries. Not when its 53 to 13 and YES that makes a difference.  Even if the xbox one gained only 1.5 million more if they released in the same places the race would be a lot tighter....

marportex
marportex

@nazgoroth When one competitor leaves the ring a new one comes in. Sony and Nintnedo are still in it and Sega dropped out MS came in. If Sony and Nintendo were to go there would be someone to take their place as well. 

Jdzspace
Jdzspace

@lostn @Shango4 - it's not possible to do that. no matter what Microsoft wants to do. They can't pay them enough to make up for how many gamers in a 10million gamer pool will buy their games, and DLC


let's say 20% of the PS4s 10million (i know that isn't the pool, but it will be). buy that game. at $60


tha'ts 150million, let's say half of that buys the DLC for $20. 


that's another 20million. 


so you think Microsoft would pay 170million dollars, to stop a game from going to another console. which doesn't make them anymore money in the process. exclusives haven't sold Microsoft's console this far. why would that change? 


there are ways they could catch up, but that isn't a realistic tactic

the_new_guy89
the_new_guy89

I get what you're saying, but that's far fetched. The 360 stole so many exclusives from Sony. So far the Xbox One is slated to release more exclusives than Sony. Their real problem is there hardware. However I'm a hardcore gamer and have had nothing but a great experience on my system.

surrealme
surrealme

@northArrow I agree with you about the end of the 360's lifespan. We'll have to wait and see if they've learned anything from history. They gambled with the One that they could draw in people from outside of the traditional gaming market by making it into an entertainment hub. So far it seems that was a bad bet, but since their console was built around that premise it will be interesting to see if closing the division responsible for developing entertainment content for it turns out to be a smart move or not. I think the new guy in charge is a huge improvement who seems to have a good head on his shoulders, but they're going to fight an uphill battle due to being underpowered compared to the PS4. I don't think the XB1 will finish on top, but I do think it's a solid product that will end up being profitable for Microsoft. It's still the console I'll choose if and when I buy into the current gen consoles, but I'm older now and do most of my gaming on PC these days so I'm not the target market they should have focused on. Sony at least seems to have learned a lot over the past decade. Manly I think both consoles are solid products and the e-peen waving between fans of the two camps is depressing, pointless, and damaging to the industry we supposedly all love.

northArrow
northArrow

@the_new_guy89 I don't think the Xbox One will outsell the 360, especially considering this gen probably won't last as long as the last one.


I say the X1 will finish with +/- 60 Million sold

northArrow
northArrow

@skiggy34  I'm a 360 owner who hasn't jumped into the next gen yet and I can tell you without question when I do, it won't be an Xbox One I buy. Microsoft needs to do a whole lot more than recycle the Halo franchise to interest me.

Jdzspace
Jdzspace

@skiggy34 @surrealme - 2 things. you REALLY think a HD re-release of Halo games is enough to sell a system that hasn't sold well yet?


that doesn't make a ton of sense. 


and as a general rule, the first system to 10million sales, wins the generation sales wise. 

the only exception is of course the 360 which was a TERRIBLE system in terms of the fact that it had nearly a 40% failure rate, and then they basically stopped making exclusives for it in the last few years. 


you have to REALLY try to lose the sales game once if you are the first to cross 10mill as a general rule

Jdzspace
Jdzspace

@lostn @shinta125 - they have? the system has been out for 9 months, and is at 9million consoles to date. 


granted they sold the first 2million quick. but since then, it's been about a million a month consistently. .. give or take a few hundred thousand


oflow
oflow

@lostn @oflow lol you're funny.  Sunset Overdrive is going to be huge. Not really a system seller but it will be a top selling game on any platform.

Halo is the franchise IP of the Xbox.  Remastered TLoU is a lot different than the MCC which is a collection of games with over 100 maps all in one interface.

The people that dont understand this obviously never played the Xbox and arent Halo fans.

skiggy34
skiggy34

@divinejester @oflow I definitely dont agree with you.  It took PS3 almost 3 yrs to even begin to catch up to 360.  If you can sit there and say that games wont sell the console you really dont know what you are talking about.  There are still MILLIONS of people who havent even gone next gen yet. Where do you think they are gonna go?  PS4?  Nah, not if they are 360 owners now.  360 owners who bought ps4 at launch just jumped into all that hate MS crap. Now lots of them are buying Xbox Ones, I see them in articles every day.  Titanfall was NOT a system seller, these websites made you believe that, If MS wanted it to be a huge system seller they would have waited a year to put it on 360 and pc..  YOU are being naive...

the_new_guy89
the_new_guy89

It's not really a fail. It's not like they were ever going to pull ahead in a month or two. Titan fall was a success. At this point of release Xbox One is still doing better than the 360 was. The PS3 was hindered in sales by a high price point at first too. It took a whole console life to catch up to the 360. They both still got outsold by the Wii. I think this time Sony played their cards right and will sit around that 120 mil number that the Wii had, while I think the XB1 will still surpass the 360's 80 mil. By how much, I'm not sure. Maybe 90? I think Nintendo will release a newer console and won't catch up with either of theirs. I also don't think the XB1's bad press will haunt them forever. Look what the 360 went through, and it's still selling extremely well.

oflow
oflow

@divinejester @oflow Far from it. Do you buy a console to brag on specs or play games?  I buy it to play games.

Titanfall didnt fail. Neither did the Kinect.  The X1 is selling better than expected just not like the PS4. 

Currently I enjoy my X1. Everyone I know that has one enjoys it.  Currently playing DR3 which is a great game.  I also know a number of people with PS4s that dont even use them.

 If you dont think games make a difference, enjoy your PS4, because I enjoy my X1.

nazgoroth
nazgoroth

You're underestimating the cost of getting in the console market. And tying developers to your company to produce games for it. If one leaves the market at this point they will NOT be replaced.

nazgoroth
nazgoroth

I don't understand the fierce defensiveness for the product of choice, let people have fun with their system. I couldn't choose and wanted to be able to play all exclusives. Thus I am now poor... but own 2 handhelds and 5 consoles... and a pc :).

lostn
lostn

@Jdzspace @lostn @Shango4 They have the money to do it. They have enough money to buy Sony entirely a hundred times over. They could even buy them just to take the Playstation name and ensure no one else can use it ever again, and fire every single employee if they wanted to.


It's down to how much they're willing to spend, and how important it is to MS to be #1. They seem to be a company with a lot of pride. They don't like being beaten.


You are right that it will cost a lot of money to buy exclusivity. They did it already with Titanfall though, and it hasn't worked out for them because it's a new franchise. What if they bought Call of Duty exclusivity even for just a year? Yes, this will cost them over a billion. I think the PS4 will instantly be dead and MS will own the market all to themself.


Everyone who hasn't bought a console yet will buy XB, even if they don't care about CoD. That console is the one that will gain critical mass and sell rapidly, and then the expectation that all the exclusives will go there will drive sales up even further.

the_new_guy89
the_new_guy89

That's possible, but if so then I think that would apply to all systems. The 8th generation jump just isn't big enough. The fidelity of PC gaming is proof because it's way ahead. Maybe the systems should be semi upgradable like PC, or maybe they should join with Sony's hardware expertise and Microsoft's software expertise and create the ultimate system. With that happening a new competitor would emerge and the state of gaming will be restored. Then we could worry about innovative games instead arguing over who's graphics look the best, or who provides the best entertainment and experience. I was perfectly satisfied with my N64 and Playstation, and never compared the 2...

oflow
oflow

@Jdzspace @skiggy34 @surrealme he doesnt understand how popular Halo is or how nice the remaster is.  I know a bunch of people that are planning on buying an X1 just for the MCC w/ Halo 5 beta.


Lt_Logan
Lt_Logan

@Jdzspace  Right. So Sony crosses the 10 mil mark and MS is at 9.5. They better pack up shop, it's over. They lost. Better luck next time MS. Nice comment.

lostn
lostn

@skiggy34 @divinejester @oflow "I definitely dont agree with you.  It took PS3 almost 3 yrs to even begin to catch up to 360."

No it didn't. That's because the 360 had a year's head start. If you compare year on year sales, the PS3 sold more than 360 right from the gate, even with $200 higher price tag. Yes. Go and look at the figures. The first 12 months of PS3 sold more units than the first 12 months of 360. 


If X1 didn't release till late 2014, they'd be in sad straights.

Jdzspace
Jdzspace

@skiggy34 @divinejester @oflow - you dont' get it do you? So many 360 owners have gone to PS4 it's not even funny up to this point. 


and Sony doesn't even care about the 360 owners, they outsold the 360 after giving them a year head start. They are going after the millions and millions who had Wiis last gen. 


Microsoft is losing 360 users by the day, and they aren't going to the new console. it's just not impressive enough to deserve it

lostn
lostn

@oflow @divinejester "Titanfall didnt fail. Neither did the Kinect.  The X1 is selling better than expected just not like the PS4. "

That in itself is a fail. TF was meant to be their ace in the hole, the reason X1 will beat PS4. It wasn't. It even released at a time when it was bundled with the console and Kinect for $450, basically making the game free. When you take its total value and remove the price of the game, you are getting the Kinect with the console for $390, which was even cheaper than PS4, but worth $100 more in value than the PS4. And it still couldn't beat PS4 that month.


The $400 kinectless bundle was supposed to be the proof in the pudding. Were people only picking PS4 because it was cheaper? This was their chance to put their money where their mouth is. It turns out, there was more to it than that.


Microsoft is going to have to do more than match what Sony does. They have to provide even more value. Meaning either the price tag has to be lower, or they have to bundle more stuff inside it.

oflow
oflow

@divinejester @oflow Also, these companies make the bulk of their money from games not the system.  The X1 already has a higher attach rate than the PS4.  (ps4 is 2.1  x1 is 2.9)  

Saying that the Master Chief Collection w/Halo 5 beta wont make a difference would make you naive in my eyes.

Jdzspace
Jdzspace

@Lt_Logan @Jdzspace - well since Sony is pushing over 9million right now, and Miccrosoft is pushing closer to 5million


i don't think that is going to happen

divinejester
divinejester

@oflow @divinejester Yes because of course, Sony will never release any games from this point on. Order 1886, Bloodborne, Natural Doctrine, Uncharted 4, LBP 3, Driveclub, Everybody's going to rapture, Soma. I must have imagined these games.


This is the biggest joke about statements like yours, not only do you think the next MS tactic will be successful, you act like Sony will turn to stone and do nothing.


And yes I also have some nebleous imaginary friends who will back up my claims that they love the ps4, while they have an xbox but don't use it. Frankly the five people that you know don't account for anything as far as the a system goes.

nazgoroth
nazgoroth

Good point. And it makes me a sad, and a little upset.