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Microsoft Reports Decline In Xbox Sales, Increase In Xbox Live Revenue

Microsoft has announced its company-wide first quarter 2014 financial performance. The company saw a decrease of 3 percent in operating income to $6.4 billion, but significant revenue amounting to $18.6 billion (up 7 percent year-over-year).

As Microsoft prepares for the release of the Xbox One in just under a month, the company is reporting a decrease in Xbox 360 sales from 1.7 million units last year during this quarter to 1.2 million units (29 percent decrease).

By contrast, Xbox Live transactional revenues are up 25 percent. Microsoft's Surface tablets contributed $400 million to the segment it shares with the Xbox brand.

[Source: Microsoft]

 

Our Take
Decreases in Xbox 360 sales are to be expected. The significant uptick in Xbox Live transactions is good news for Microsoft, which originally wanted to push more of its next-generation revenue in that direction. 

Depending on how smoothly the launch goes next month and how quickly digital purchasers are able to get their games downloaded, this number could skyrocket quickly. If so, Microsoft might get to quietly realize its digital vision without the uproar caused earlier this year.

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