Microsoft noted in a call to investors last night Xbox hardware revenue declined 26% during its third-quarter for the current fiscal year.
Xbox One sales up year-over-year despite decline in hardware revenue
The company attributed the decline to lower Xbox 360 consoles sold and lower Xbox One pricing. That said, Xbox One unit sales were up year-on-year for the period ending March 31.
As reported in its financial release, Xbox Live grew 26% year-over-year compared to Q3 FY2015. The company said the increase was "driven by the growth of Xbox One and Windows 10."
The firm said Xbox One sales are continuing to outpace prior generations in both reach and engagement, and gaming hours grew on Windows 10 by 50% thanks to Xbox One titles being available through the Windows Store.
In gaming, revenue grew 4% to $64 million due to "continued progress in the monetization" of the installed base. Revenues from Xbox Live grew 21% due to higher volumes of transactions, revenue per transaction, and increased revenue from Microsoft's game studios.
Microsoft expects to see "continued healthy user engagement" on its Xbox platform. Looking forward to E3 2016 in June, the company will announce new titles for the upcoming fiscal year.
Via Seeking Alpha.