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Xbox 360 ships 1.7M consoles during Q1, revenue down 24%

Thursday, 18th October 2012 21:35 GMT By Stephany Nunneley

Microsoft shipped 1.7 million Xbox 360 consoles during the first quarter of its financial period ending September 30, down 600,000 units compared to the 2.3 shipped during the same period in FY12.

The firm’s Entertainment and Devices Division, which contains the Xbox brand, reported revenues of $1.95 billion, which was rather flat compared to the same period in FY12.

Operating income dropped 94% to $19 million, and the less-than-stellar results were blamed on a smaller release slate: during the same period in 2011, Gears of War 3 was released.

“Video game revenue decreased primarily due to the release of Gears of War 3 in the first quarter of fiscal year 2012 with no comparable major releases in the first quarter of fiscal year 2013,” was the firm’s exact quote.

Xbox 360 revenue decreased $418 million, down 24% year-over-year due to “lower volumes of consoles sold and lower video game revenue,” said Microsoft. This was offset “in part by higher Xbox LIVE revenue.”

Research and development expenses increased $140 million or 44%, primarily reflecting higher headcount-related expenses related to interactive entertainment and the acquisition of Skype.

Quarterly revenue for the firm as a whole came in at $16.01 billion with $4.47 billion in net income.

You can look over the full financial release here and here.

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13 Comments

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  1. woe

    70 million units WW is still lot for a newcomer.

    #1 2 years ago
  2. pukem0n

    its sad how there are no real exclusive blockbusters on the horizon except for halo and gears

    #2 2 years ago
  3. OlderGamer

    I would imagine that heavy focus is on the xbnxt at this point.

    #3 2 years ago
  4. Erthazus

    Xbox Next is coming for sure. It’s time. Finally.

    @2, and why should they have more?

    At least Microsoft make decent marketing campaign for both games unlike Sony that shows the game like Starhawk on GT and then don’t talk about it and show a bunch of trailer and release it before E3.

    Microsoft is very clever when it comes to exclusive games. Maybe for gamers that buy a lot of games for Xbox 360 this is not much, but for generic everyday gamer that is enough and Microsoft know what their fanbase want.

    #4 2 years ago
  5. gomersoul

    yeah erth, I think you’re right. fanbases are crying out for decent marketing campaigns right now. you are priceless!

    #5 2 years ago
  6. Monk

    @4 so I need Marketing not games to play with.
    God how funny you are xD

    #6 2 years ago
  7. Erthazus

    @6, For F sake it has nothing to do with you. Microsoft knows much better than you that’s why Halo sells for 8 million units and Gears for 5-6.

    More games =/= better sales

    #7 2 years ago
  8. Ge0force

    #4 So Microsofts fanbase only wants the same IP’s every year again, plus some crappy Kinect games? That’s hard to believe tbh…

    #8 2 years ago
  9. OrbitMonkey

    I believe what Erthazus is trying to say, is that although MS offerings may be slim, their solid games, that MS market well, so that’s all the general consumer wants or needs.

    Whereas Sony for example, who have a broader offering of exclusives, often fail to give them the hype needed. So their games are not so much in the general consciousness.

    #9 2 years ago
  10. G1GAHURTZ

    ^ I didn’t know you spoke Latvian!

    #10 2 years ago
  11. Erthazus

    @8, Nope. Microsoft fanbase also have third party support. All console AAA games are on the platform.

    I think 90% of gamers play Gears, Halo, CoD, GTA and other 3rd party games every year. That is enough for them and Xbox 360 does a perfect job with that.

    @OB, yeah. You are right but this is sad actually. It’s Sony’s fault although games like inFamous 1-2 deserve much better sales in my opinion.

    #11 2 years ago
  12. Timurse

    I play all the multiplatform games on Xbox 360. And my ps3 is covered with dust because I play only exclusives there. And by exclusives I don’t mean shovelware like inFamous, Starhawk or Motorstorm. But Uncharted, Journey, Heavy Rain and LBP were really cool. I’m waiting for RAIN, Last of Us and Beyond.

    #12 2 years ago
  13. Da Man

    Marketing isn’t advertising.

    Halo sold over 10 million.

    And Halo success has a lot to do with it’s gameplay.

    Also, Erthazus is dense.

    #13 2 years ago