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Xbox Gaming Revenue Down, But Xbox Live Is Up

by Matthew Kato on Jul 19, 2016 at 11:45 AM

Today Microsoft announced the results of its fiscal fourth quarter (April through June, 2016), with a decline of $152 million in gaming revenue. This was, however, offset by good news from Xbox Live.

The $152 million decrease represents a nine-percent decline as compared to the same period the previous year. Microsoft attributes this to lower console sales as well as lower prices for those sold. In all, Xbox hardware revenue for the period was down 33 percent.

On the other hand, Xbox Live revenue went up four percent due to more transactions and an increase of consumer revenue spent for those transactions. Furthermore, the services's monthly active users increased 33 percent to 49 million.

[Source: Microsoft]


Our Take
Cutting the price of the hardware by $50 certainly means reduced hardware revenue, but then again announcing the Xbox One S and Project Scorpio at E3 while still trying to sell the current hardware configuration didn't help matters, either.