Microsoft moves 600,000 fewer consoles during latest quarter due to "soft console market"; Xbox Live membership rises 15 percent; revenue for Xbox division climbs 20 percent to $1.78 billion.
Microsoft's latest financial report reveals Xbox 360 shipments for the three-month period ended June 30 hit 1.1 million, down 600,000 from the 1.7 million units the company moved during the same period a year ago. Microsoft attributed this downturn to the "soft console market," which has already been well-documented by the long-running string of flagging monthly NPD reports.
Despite the lag in shipments, Microsoft said the Xbox 360 has been the top-selling console in the United States for 18 consecutive months. Additionally, the company said Xbox Live subscriptions for the period rose 15 percent over a year ago prior, following the launch of "differentiated gaming and entertainment opportunities." Specific subscription figures were not provided, but Microsoft previously said Xbox Live boasted 40 million members.
As for specific figures, Microsoft's Entertainment and Devices Division (of which the Xbox gaming sector resides) saw revenue grow 20 percent for the quarter to $1.78 billion, and 8 percent for the full year (also ended June 30) to $9.59 billion. Microsoft said the uptick for both periods was mostly tied to the company's acquisition of Skype last May.
As for Microsoft at large, the company hauled $18.06 billion in revenue for the quarter, up 4 percent over last year's take of $17.37 billion. For the full year, the Seattle technology giant took in $73.72 billion, a rise of 5 percent over the prior year's revenue of $69.94 billion.
Eddie Makuch (Mack-ooh) is a News Editor at GameSpot. He works out of the company's Boston office in Somerville, Mass., and loves extra chunky peanut butter.
I would have owned an Xbox 360 (I own most game consoles), but there just aren't enough games on it (that I don't already have for PC or PS3) that interest me enough to make the purchase. I do regret not playing through the Gears of War series (I played the first game on PC and really liked it), but I'd need more than just Gears and Halo to make me purchase a new machine. Also, its been an awful year for everyone in the gaming industry.
1 Like Each to their own an all that. I prefer Sony's games, and that's all their is to it.
This has been a CRAP year for gaming though. For everyone.
on a positive note although the X360 sales are way way down its at least now selling as much as the PS3 during its peak
$18.06 billion, $73.72 billion MS is 1 hell of a money making machine, Bill Gates never stood a chance not to be a billionaire I LOVE MS
Sales went down because the console isn't breaking as much in my opinion. I know lots of people who have gone through several Xboxes because of them getting the red eye of death! The latest model seems to be pretty stable. This is just an issue of quality over quantity. I bet Microsoft is shooting themselves in the foot for putting out a quality product. A rare situation indeed.
1 Like @comaparadigm dont think that the primary reason. The RROD issue has drasticly reduced since 2009 with improved Motherboard design. Even the first 1-3 fiscal year, RROD console only subjected to aprox. 33% console for the first batch which is a insignificant portion of the sales (if you want to related to it).
the main reason is that, there are handful of core exclusives on it. Thus more Core gamers are either leaving the platform and leaving the casual kinect crowd around.
pointless article, give us information about latest release game or upcomming release game rather than the sale of system. This is a gaming website not Wall Street?
1 Like And yet again gamespot/ Eddie Makuch you post useless information on a supposedly unbiased gaming information site. I want to know about games and new console information not sales figures, I don't want useless wall street insights.
What is the purpose of this story? Is it to fill the growing void of no new gaming information? Go hit that bong and eat some chunky peanut butter one more time and maybe your next story will be more informative for gamers not a brokerage dealers.
- Sincerely Bernie Madoff, Freddie Mac, and Fannie Mae
"Despite the lag in shipments, Microsoft said the Xbox 360 has been the top-selling console in the United States for 18 consecutive months."
It's a good thing Microsoft is working damage control on this. God knows if the market of console gamers out there who haven't already chosen a gaming console hear that Microsoft's numbers are down then they might be inclined to choose the PS3 as their console of not-buying.
3 Like LOL @ "soft console market"Still trying to sell 4GB Xbox 360 Arcade for $199 and pushing $300+ 320GB Xbox360 bundles? A 7 year old console ffs. Let it die already. Longest generation ever. New consoles can't get here fast enough. By this point they should have lowered the price on PS3 and 360 to $149 or even $99.
7 Like Paying for xbox live is like paying for a glass of water from the tap after you''ve paid your water bill.
i used to say that until i realized there was much less lag on xbox live then psn. sure psn is free but there servers blow. i played bad company 2 on both consoles, same internet(wired). i had much much less lag on xbox. and its only 60 bucks if you buy for regular price. it goes on sale a lot.
@aryanbrar lol being that you have a halo pic for ur id..I suspect your either not telling the truth or have a biased opinion...I'd like to see evidence for a few games to prove it..and theirs plenty of great games that are better on ps3..portal 2 looks fantastic compared to the 360 version and has steam support which comes with cloud saves and the pc version for free
@obsequies (extra Features) Portal2 PSN system is provided by valve and its a 2 player COOP game which has nothing to do with network service. Both network system are design differently. Ofcourse paid servers are better than free servers.
2 Like @armandoisgreat You have a point but XBox Live's service is pretty good and IMO worth paying for. But to each their own.
4 Like @TaintedMindz Imagine you bought Battlefield 3 for $60 and got charged $50 a year to play online. So now it's a $110 game not a $60 game. What would you say to that? Rip-off, right?
OK, now so what exactly does Xbox Live bring to the table that's so much superior to what other companies deliver for FREE so that we could play games online?For example, I have a Steam account and I can access my account and play all my games online with PC gamers. Valve doesn't charge me $50 to have a nice pretty account with all my games and so that I can game online. So why does MS charge for that? MS is just using the "smartphone/razer-blade" business strategy. They sell you a console for $200-300 and then charge you like you have a contract to actually play it and the overall cost of 6-7 years is actually like $600-700. That's all it is. Why do I need a $50 Xbox Live Gold subscription to use Netflix?
@Agronot @BestJinjo @TaintedMindz actually I wouldn't get pissed if its free..because its free..I really didn't mind when the psn was down and I didnt complain cause I got two free games as an apology
I'll respect your opinions though I don't 100% agree with them. Would it be nice if it was free? Well yeah of course. But its not and probably never will be. All I know is I've had an Xbox for about 3 years now and never had any problem with the online. So I'll pay; as long as it functions as it should.
@BestJinjo @TaintedMindz yes that would be a $110 game IF that was the only game you ever bought for the XBox. But that cost goes down when you factor in additional games you by and pay online. look...somebody has got to pay...this is a consumer market...so typically the cost is passed on too consumer. no matter what anyone thinks...you can't get something for nothing! even free to play stuff has to generate revenue to cover expenses, which they mostly do via advertising. if it's free and something goes wrong you are pissed, if you pay and something goes wrong your pissed. in the end it's just a bunch of people whinning...
@BestJinjo @TaintedMindz ha ya I'm sure they arent accurate examples..but you get my point..there is a market for gullibles who pay for something simply for the fact that it costs more where sometimes it costs..just because people are using it...ha I trust most sony products so I can be that problem too..just because they are more expensive doesn't mean they are better..but ya
@obsequies @TaintedMindz There are a couple of coffee shops like Bean & Leaf or Aroma Espresso that I have tried in parts of US and Canada but if I want a strong Americano or a nice tasting latte, Starbucks to me KILLS Tim Hortons, Dunkin Donuts, Caribou Coffee, etc.Also, a tall coffee is just $1.87 or something. Where can you find good coffee for $0.94 that doesn't taste like water? Mercedes actually costs way way less than before. If you look at the prices of Audi, Lexus, BMW and Benz, it's BMW that increases in price the most in the last 5 years. hehe
@obsequies @TaintedMindz I think it would be perfectly fine if MS charged for Xbox Live and offered those gamers early access to DLC, maybe special discount on some games or some other perks, but online gaming should be FREE since it's an essential part of gaming today, and esp. if developers want to push this Free-to-Play business model which basically means being online all the time.
@BestJinjo @TaintedMindz its like Mercedes...in the past 20 years they have went from a near top consumer ratings car manufacturer to near bottom..but why are they worth that much?...frickin but ugly crap cars...well they are worth that much because they are expensive. Same as starbucks when you can get a better tasting coffee for half the price down the street.
@TaintedMindz I might be wrong but usually a service is something you receive when you pay something..
you never see sony or nintendo bragging "number one console sold in the world..besides the us" I think this is very misleading and as a consumer is somewhat offending
@obsequies They are an American company and you are on an American website, also who cares if they brag about being number one in America, what does it matter?
1 Like @bizuit no offense..but no other country wants to support america and if they do..its because of necessity..lol close to 60 years ago america just dropped two nuclear warheads on japan..imagine how the grandparents of Japanese kids would feel if they seen their kids playing an american game console...old people generally still think its the past..fu< my dutch grandma still asks if my girlfriends are german..but I am completely off topic lol..
@obsequies Why don't you get off your high horse... at least in america we don't force health care on people. if you want something in america you work for it and get it. And the fact that your getting upset because i said third world country and then pumping your chest up saying your proud to be canadian only means that your actually one of the flag fanboy idiots you despise of so much. and america isnt ran by hicks. that makes no sense. we dont have rednecks in the white house. but as before i still suggest moving and complaining to third world country people. i would like you to find me a country that doesnt have something wrong with its governmental system.
1 Like @obsequies The US is the reason why Canada still has an economy. We are your biggest trade partner, we help pay for many of your institutions. Let's be honest Canada is the most irrelevant country in the world. The only reason people care about you is who is your southern neighbor.
1 Like @obsequies clearly your an american hater so why don't you move somewhere else and bitch and moan to your third world country friends about how bad this free country is. and may i add that the only reason your able to rant on and make stupid comments is because your in america. and if you really think that america is the shit i suggest changing your actions because they clearly speak other wise
@armandoisgreat I'm answering questions..whats wrong with involving ethics and morality with consumer choices? when I see micrsoft..it just feels like a big american company that milks ppl the best they can..manipulates..just so american...maybe I have a stereotype of america I dunno..just seems like they are all about war..killing..money..obviously not everyone..but compared to other countries..america is sh!T
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Okay i read Your hole discussion People , and wanted to tell you something about online services for both consoles , not CONSOLES online services .... The only reason that would drive me to Get PSN is because it's free XBL is way better Period .
1 Like @Gamer-Elias playstation plus is a payed service and it makes psn better than xbl..thats my opinion though
@Gamer-Elias just because something is free doesn't mean its not as good...free sex is a lot better than payed lol. Linux is by far superior to windows...and the only reason xbl is better "online" is not because of the actual online structure but because of the programming architecture of how the games are developed..that creates a a strong community for small developers...the advantage 360 has over ps3 are the downloadable games...and most of those are on steam or any other online service..so their really are only a handful of ORIGINAL exclusives on 360..I'm not including disc based games like halo..that games like a cheap overdone and milked version of doom meets half life..the series got lame after the first sequal. I'm not against the 360.. cept the first model because ms played it cheap and released a broken product..but the only real benefit of a 360 is the ability to play xna indies on you're tv on a console rather than hooking your laptop up with a controller..convenience.
2 Like @Gamer-Elias Microsoft may have the better online service, but Sony has the better games.
3 Like The XBL price is stupidly high and the people are buying it. Proves the downfall of the industry. Buy the game, the DLC's, the "gold" membership, the external stuff to play the games, the hard drive and the list is going....
@Savoritias I live in canada..not long ago our only phone company that served high speed required a lan line first..so thats 50 bucks a month..plus high speed which is 60..plus xbox live..and if you want to get a used game nowadays..you have to buy the fricken online pass...crazy..like three payments..after the payment of the machine and game
i wonder will the up the price for XBL on the next xbox & how many suckers are gonna pay for it at full price. Let play the guessing game people
11 Like Microsoft need to stop promoting kinect, they need to focus more on hardcore Gaming and New Exclusive Titles
@irwin88 No, no. Microsoft can keep doing what it does, focusing on kinect and Live.Do you honestly believe whether a game is first or third party matters? It does not. Microsoft knows this. It doesn't even need that many exclusives because people will buy for the existing library in its physical and digital forms.All microsoft needs to do is expand on its features and improve on live which is one of its primary sellers.
While discussing new Outlook email service, Microsoft general manager Brian Hall namedrops "new Xbox" but does not share more.
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