Microsoft Q3 – Xbox 360 division declines 16% due to “soft market”

Thursday, 19th April 2012 21:21 GMT By Stephany Nunneley

Microsoft has released its financial report for Q3 which showed a 16% revenue decline for the Entertainment & Devices Division, in which the Xbox 360 division falls under. Revenue for the division came in ta $1.62 billion, with the decline blamed on “a soft gaming console market.”

Xbox remained the top-selling console in the US for the 15th consecutive month, as reported by NPD earlier this month.

Revenue for the console decreased $584 million or 33%, due mainly to “decreased volumes of Xbox 360 consoles and standalone Kinect sensors sold, offset in part by higher Xbox LIVE revenue.”

The firm shipped 1.4 million Xbox 360 consoles during Q3 of fiscal year 2012, compared with 2.7 million during the same quarter of fiscal year 2011.

For the nine months ended March 31, 2012 compared the same period in 2011, Xbox 360 platform revenue decreased $154 million or 2%, due to “decreased volumes of standalone Kinect sensors sold and lower video game revenue, offset in part by higher Xbox LIVE revenue.

The firm 11.9 million consoles during the first nine months of fiscal year 2012, compared with 11.9 million Xbox 360 consoles during the first nine months of fiscal year 2011. Video game revenue decreased due to strong sales of Halo Reach in the prior year.

“We continue to execute well across our businesses, and we are seeing robust demand for our enterprise products and services,” said Kevin Turner, division COO. “Our investments and offerings in the database platform and public, private, and hybrid cloud are helping our customers transform their operations to meet today’s evolving business demands.”

Overall, the firm generated $17.41 billion in revenue, a 6% year-over-year increase. Net income came in at $5.11 billion compared with $5.23 billion the prior year.

“We’re driving toward exciting launches across the entire company, while delivering strong financial results,” said CEO Steve Ballmer. “With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead.”



  1. Hunam

    The shitty new dashboard doesn’t help.

    #1 3 years ago
  2. Razor

    Quite the drop in sales, 2.7m to 1.4m.

    Although of course Kinect had not long come out, and it’s more in-line with previous quarters.

    Still, with the way the 360 has been going recently, I was expecting a bit more.

    #2 3 years ago
  3. chipvideo

    This Gen has lasted too long. Ideally they should be comming out with new hardware fall 2012 instead of 2013. Oh well….

    #3 3 years ago
  4. hitnrun

    Turning on my Xbox now is an exercise in misery. I’m tempted to make the thing into a last-gen artifact by turning “on” both forms of Autoplay, which I haven’t used since I bought the console.

    #4 3 years ago
  5. CPC_RedDawn

    I agree the new dashboard is shitty, if you do not like that then you will HATE Windows 8.

    I have the previous build and its god awful, the new UI is simply hideous. Yea sure its fast and it may be efficient but I love the current Windows UI and if we do not have the option to go back to using that in the new Windows then I shall stick with Windows 7 (SP2 should be out any time now).

    Also I see Microsoft pushing Windows 8 pretty hard when it comes out, I suspect the next Xbox will use it in some form as well as Windows based Phones, Laptops and of course PC’s. They will heavily push Kinect 2.0 as it will come bundled with the console (this is a given).

    Yea this gen of consoles has lasted FAR too long, most of the games out now could look and play 10x better if they released new hardware. Current console hardware is just so far behind and there is only so much devs can do to mask this in games.

    #5 3 years ago
  6. manamana

    I take the dashboard over the Wii’s or PS3s anyday.

    #6 3 years ago
  7. DeyDoDoughDontDeyDough


    I have to agree. There’s just no excitement out there for new games. My friends could always be found online playing the latest games, now it’s like a ghost town. There’s no buzz. No excitement.


    So we can all get excited about games again. Playing on Xbox 360 makes me feel like an involuntary retro gamer.

    #7 3 years ago

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