GameSpot may receive revenue from affiliate and advertising partnerships for sharing this content and from purchases through links.

Xbox Game Sales and Xbox Live Users Rise, But Hardware Sales Fall

Xbox Live reached 39 million active users in the latest quarter, up 28 percent compared to last year.

148 Comments

Microsoft on Thursday reported earnings for the quarter ended September 30, revealing new insight into the health of the company's Xbox gaming division. Some areas saw gains, while others slid.

No Caption Provided

Game sales grew 66 percent, led by sales of Minecraft, the sandbox franchise that Microsoft paid $2.5 billion to acquire back in 2014. Another area of growth during the quarter was Xbox Live. Revenue generated from the online platform increased 17 percent compared to the same quarter last year. Microsoft said this was driven by more total transactions, as well as higher revenue per transaction.

An additional bright spot for the Xbox platform during the quarter was the number of "active" Xbox Live users, which rose by 28 percent to 39 million. In a post-earnings financial call, Microsoft CEO Satya Nadella added that about half of all Xbox One owners log into Xbox Live every day.

It wasn't all good news for the Xbox division during the quarter, however. Total revenue from hardware fell by 17 percent compared to last year. Microsoft attributed this downtown "mainly" to fewer Xbox 360 consoles sold.

During the same quarter of last year, Microsoft shipped 2.4 million combined Xbox One and Xbox 360 consoles. However, Microsoft did not share any new data regarding the number of consoles shipped during this quarter. Overall, gaming revenue "increased slightly" during the quarter, Microsoft said.

Microsoft's "More Personal Computing," the division which houses the Xbox unit, posted total revenue of $9.3 billion for the quarter. This is down from $11.2 billion during the same period last year. Operating income also slid year-over-year, falling from $1.62 billion to $1.56 billion.

Overall, Microsoft posted revenue of $20.4 billion for the quarter, down from $23.2 billion during the same period last year.

Microsoft will hold an earnings briefing to discuss these results starting at 2:30 PM PDT / 5:30 PM EDT.

Got a news tip or want to contact us directly? Email news@gamespot.com

Join the conversation
There are 148 comments about this story
148 Comments  RefreshSorted By 
GameSpot has a zero tolerance policy when it comes to toxic conduct in comments. Any abusive, racist, sexist, threatening, bullying, vulgar, and otherwise objectionable behavior will result in moderation and/or account termination. Please keep your discussion civil.

Avatar image for atakanovic
atakanovic

134

Forum Posts

0

Wiki Points

0

Followers

Reviews: 2

User Lists: 0

#Xboxdone

2 • 
Avatar image for vegasgamerdawg
VegasGamerDawg

83

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

" Here's what you need to know about MS's earnings report" Unless you're a stockholder, nothing, just play the games you like.

Upvote • 
Avatar image for Thanatos2k
Thanatos2k

17660

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

So 360 is dying, and the Bone ain't picking up the slack. Oh, but DLC and microtransaction sales are up!

Just sell the console division already. You shouldn't even be in the business to begin with - you sell operating systems for PCs. Stop competing with yourself.

2 • 
Avatar image for sladakrobot
sladakrobot

11910

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@Thanatos2k: Yeah lol
And Sony should have been making Walkmans instead of joining the console market.
And Nintendo shoul still make those playing cards instead of entering video games.
And Sega should have stayed doing their games for arcades.
I think you shouldnt been playing video games because you arent a gamer...just a dude who turns with the wind.

Upvote • 
Avatar image for Thanatos2k
Thanatos2k

17660

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

@sladakrobot: None of those businesses compete with themselves, except for perhaps arcades competing with home consoles.

Which is why arcades are pretty much dead. Sega should have bailed out from them, and have lost much money by not doing so.

Upvote • 
Avatar image for sladakrobot
sladakrobot

11910

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@Thanatos2k: Making a OS for PCs and games for consoles compete with themselves?
You are grasping at straws

Upvote • 
Avatar image for Thanatos2k
Thanatos2k

17660

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

@sladakrobot: Please tell me you are not actually being serious and are just trying to argue because you always support Microsoft.

Windows is THE de facto gaming platform for computers. Has been for 2 decades. It is one of the main reasons for the monopoly of the Windows OS.

Game consoles factually compete with this.

Upvote • 
Avatar image for sladakrobot
sladakrobot

11910

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@Thanatos2k: Microsoft earns money with BOTH,so they dont compete each other.

Upvote • 
Avatar image for Thanatos2k
Thanatos2k

17660

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

@sladakrobot: .....Reread what you just said, slowly. I would hope you can see how it contradicts itself.

Upvote • 
Avatar image for sladakrobot
sladakrobot

11910

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@Thanatos2k: I dont need to reread it.
It is clear that MS makes OS for PC,Tablets,Smartphones...Gaming PCs are only a afterthought ,which numbers are like a drop in a ocean in comparison.
We speak about business,companies,fabrics,power plants,IT,governments,schools ,universities etc etc.
That is where MS makes their money.
And there are consoles,consumer electronic devices...gaming...a whole different branch.
In no way do they compete each other.
I am curious what is coming next out of your mouth.

Upvote • 
Avatar image for Thanatos2k
Thanatos2k

17660

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

@sladakrobot: "Gaming PCs are only a afterthought ,which numbers are like a drop in a ocean in comparison"

http://gamepolitics.com/2014/04/25/dfc-pc-games-revenue-surpasses-console-games/

Sure, drop in the ocean! Are you just making up stuff as you go along? This is embarrassing.

Upvote • 
Avatar image for sladakrobot
sladakrobot

11910

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@Thanatos2k: Learn to read!

In comaprison to business PC,where MS makes the most of its money,gaming PCs are peanuts in comparison.
This is from the article you linked:
"Among core gamers there is a heavy overlap with most console gamers also playing on a PC. The big difference is that consoles are now the luxury item and PCs are the necessity. Just a few years ago the reverse was true. This means PCs have the broader audience."
So 20 years of console domination,pcs eventually cought up in the past...1-2 years?
It follows with:
"DFC says that MOBA (multiplayer online battle arena) titles and free-to-play games are continuing to perform strongly.

"The MOBA games League of Legends and Dota 2 dominate everything else by an order of magnitude in terms of more usage than other products," added Cole. "In the first part of 2014 we saw some signs that may change with the introduction of new titles and some increased play of games outside the MOBA category.

"But MOBA is dominant. Beyond that it is a nice mix of MMO, strategy and first person shooter."
Thought so.



Upvote • 
Avatar image for Thanatos2k
Thanatos2k

17660

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

Edited By Thanatos2k

@sladakrobot: Because Microsoft inexplicably abandoned the PC gaming market to compete with themselves with game consoles, and Steam had to save them from themselves.

Upvote • 
Avatar image for deactivated-610c3819be19e
deactivated-610c3819be19e

409

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

After all of the XBone fiasco dust settled I figured things would get back to normal or at least level off since the Xbox has become an excellent machine. I guess you truly can destroy a brand with mix messages and absolutely brutal vision by a few suits.

Even though gamers are pretty smart shoppers and a lot know now that the Xbox is a good machine people still go for the PS4. My PS4 has been collecting dust because the Xbox One makes a much better media device/gaming system.

Upvote • 
Avatar image for Hurvl
Hurvl

2224

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

"Game sales grew 66 percent, led by sales of Minecraft" MS is already profiting from the purchase of Minecraft, good for them, but odd that no other games are more successful, since MS has some some pretty decent first-party games.

Upvote • 
Avatar image for Messenger360p
Messenger360p

145

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Ssshhhhhh.......... we don't want X1 to outsell PS4 otherwise all that riff raff, like those who slag off below, will infest our great gaming system..

So many games too play & NXOE coming next month Xbox owners have never had it so good.

Now flame me Sony boys I don't care.....

Upvote • 
Avatar image for amaneuvering
amaneuvering

4817

Forum Posts

0

Wiki Points

0

Followers

Reviews: 5

User Lists: 0

Edited By amaneuvering

Make a much smaller box, at least about half the size, and cut the price a little, and I think it might help boost sales quite a bit for a while. That huge box is just so off-putting, imo, and the fact it's not just a wee bit cheaper than the obviously more popular PS4 also makes it a tough call for some people.

The problem is that the Xbox One feels like it's always playing just a little bit of catch up to the PS4 (and like Microsoft is always responding to what Sony does first), not just in sales, and somehow you need to get over that or else it will always be behind.

Upvote • 
Avatar image for nickes
NIckEs

148

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

How big is the last gen market? From that part where hardware sales dipped due to lesser 360s sold, i kinda got the impression there was, or still is, a significant reliance to it by MS in reeling in the $. I'd understand it if it were just a few months upon release of MBOne but it's not

Upvote • 
Avatar image for Setzera
Setzera

127

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

Launch was basically what hurt them, it's a fantastic console now though. 2 years is a long time, even though it really has felt like way less time since 8th gen started.

Upvote • 
Avatar image for flames325
Flames325

837

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Wow the XOne is kicking in revenue and the software department.Starting this month when Halo 5 ships the XOne is going to fly off shelves.I remember last holiday they broke all black friday records no doubt it will happen again this year.$20 billion for the quarter that's just insane the amount of money they bring in.Hell microsoft does almost what sony's whole company is worth in a quarter lol

Upvote • 
Avatar image for Jdzspace
Jdzspace

1163

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

@flames325: too bad it can't move consoles though.

and does one good month (for the record it didn't break any records last black friday) really matter when they get smacked around the rest of the last 2 years?

4 • 
Avatar image for hotwog21
hotwog21

843

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

bring back DRM, bring back no cross chat between 360 and xbone, bring back, u cant download your xbla games but your gamer tag can transfer over.

All these reasons and more is why people jumped to ps4, because instead of building on the back of the 360 you tried to see what you could get away with. If u had just done this out of the box instead of stalling the industry by more than 2 years, imagine where we would be now.

and congrats on shutting down vgchartz.com i guess it hurts your sales when everyone can see how your console is selling worldwide.

4 • 
Avatar image for richterscale
richterscale

52

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Nelson Muntz says Ha Ha.

Upvote • 
Avatar image for ahpuck
ahpuck

3641

Forum Posts

0

Wiki Points

0

Followers

Reviews: 100

User Lists: 0

Edited By ahpuck

I bet heavily discounting the xone, plus all those giveaways didn't help the bottom line much either.

2 • 
Avatar image for bobafetthatesu
BobaFettHatesU

2895

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By BobaFettHatesU

With families able to digitally share content on the same console over multiple accounts and now with Win10 game streaming it's less likely Xbox homes will have multiple consoles in them. I once had 3 Xbox 360's in my house but today I have 2 PS4's with the intent of letting the other rooms stream games from a single Xbox One on the newly upgraded Win10 PC's. Not that so many people are as forward thinking as that but I wouldn't doubt that scenario becoming more common now that it's possible. But fanboys will still deny the majority of gamers expect 1080p games now more than they once did back in ancient times before there were so many 1080p and 4K panels in homes.

Upvote • 
Avatar image for LPDisturbedHU
LPDisturbedHU

2063

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

@bobafetthatesu: Why would there not be multiple Xbox One's in a household if you want to gameshare?

Streaming only streams what's playing on the Xbox One, which means one Xbox One can only play one game.... which means that the Windows 10 streaming only plays that one game.... which means you need two consoles in order to gameshare with a friend/family member.

Upvote • 
Avatar image for otterbee
Otterbee

829

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@bobafetthatesu: I'm not sure I understand exactly what you're saying. How do you share content on the same console over multiple accounts? Are you saying that you can have one (digital?) copy of the game and then multiple accounts play that one copy simultaneously? I vaguely recall Xbox allowing "friends" to borrow a copy of a game (digital?) for some period of time...or being able to offer a one-time trade of a game to a friend. I thought that was just moving the license over to another account or something though. But everything I've ever heard about this was very limiting in terms of actually sharing a game with multiple people simultaneously.

Also, not sure why you would have 2 PS4s either. How big is your family that you need that many consoles?? I could see having a PS4 and then a PS TV allowing you to remote play in another room. But not sure why you would need 2 completely independent PS4s...unless there are multiple gamers in your house, which there certainly could be.

TL;DR - What are the use cases you're "promoting" or interested in?

Upvote • 
Avatar image for bobafetthatesu
BobaFettHatesU

2895

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@otterbee: Seems there are many things in life you just don't understand.

Upvote • 
Avatar image for silversix_
silversix_

26347

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

The Xbox One is such a useless gaming console. Thanks god people see this and buy the ps4 instead. No wonder the PS4 is outselling the Bone 5:1.

5 • 
Avatar image for xenomorphalien
XenomorphAlien

5118

Forum Posts

0

Wiki Points

0

Followers

Reviews: 7

User Lists: 0

@silversix_: My fanboy detector is off the charts!

5 • 
Avatar image for deactivated-5c0b07b32bf03
deactivated-5c0b07b32bf03

6005

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

People can blame the XB1's problems on Don Mattrick all they want. But the truth is, when it comes to gaming consoles, when most people hear 'less powerful' they immediately go looking elsewhere. Hence, the XB1 is not doing too well, at least in comparison to the competition.

3 • 
Avatar image for deactivated-578f2053b4a13
deactivated-578f2053b4a13

1671

Forum Posts

0

Wiki Points

0

Followers

Reviews: 10

User Lists: 0

Why are they so scared to reveal how few Xbox Ones they sold? Oh, yeah. Because Sony is kicking your ass.

10 • 
Avatar image for noirtenshin
noirtenshin

206

Forum Posts

0

Wiki Points

0

Followers

Reviews: 4

User Lists: 0

Edited By noirtenshin

while MS is not my favorite company ( nether is Sony), i think this is the best scenario for gamers.

Let me elaborate:

This gen MS suxs more, at least more then Sony (similar to how Sony suxed the last gen, at least in the start), and the numbers reflect that:

so that (hopefully) means that MS will get smart the next one and take things seriously and to a higher level.

Hopefully, both companies for the next gen will make real consoles with unique architecture that would set them apart from PCs and really make them a worthy platform that is closer to PC standards, just works differently (and much cheaper, due to its limitations).

ATM more then half of the games have double if not triple markets (available for more platforms) with 0 differences between them except graphical settings and DLCs (which is the worst thing to focus "uniqueness").

What i would like to see is the brainpower behind MS and Sony, in trying to add features that would handle the game controls differently.

Yea Kinect is a great idea, just make it work... And optional. Add gameplay elements that bring that element out, but only as a bonus so you reward people that have it and make people wish they have it.

Sony did great, but needs to expand too. A box that works great is a minimum that they have delivered. Now they need to make it "special", make a feature that would separate it from a "working box" to a "special play/game station".

Nintendo just needs to make a competitive hardware with more games. Their games bring the uniqueness that their "box" has, just they need more of it and try to expand their media to different, more mature demographic.

Delivering more types of experience except games based on a nutty color palette is the next step in evolution that they need to make if they want to advance from their current position.

And i believe, that we will see some of that in the next gen, because of reports like this one.

Upvote • 
Avatar image for deactivated-5d14bade6a0c4
deactivated-5d14bade6a0c4

720

Forum Posts

0

Wiki Points

0

Followers

Reviews: 11

User Lists: 0

The Xbox One is definitely my favorite console this gen. Halo and Gears are the best. Xbox Live is awesome. All my friends are on Live. It is a hub of entertainment for everything in the living room. Still like my PS4; it's my go to console for solo offline games now.

Upvote • 
Avatar image for Jdzspace
Jdzspace

1163

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

@Defender1978: I think that is exactly how it should be. I don't do a lot of online gaming. i prefer single player games. So I don't have a Microsoft console.

and that is why Microsoft doesn't have any value to me as a console, it's fine for what it is. But it just doesn't appeal to the type of gamer that I am.

that is fine, it has it's niche. so maybe stop acting like it's in competition with anyone, and just do it's own thing. stop trying to buy franchises that have always been multiplat and force time exclusivity.

Don't punish gamers for not wanting your console. that's not ok.

people who want to play online solely, or primarily, or dig the entertainment hub thing. do that.

let the rest of the gamers do what we have always done. that way, nobody looks stupid when they get embarrassed in sales like has happened in recent years.

Upvote • 
Avatar image for deactivated-5d14bade6a0c4
deactivated-5d14bade6a0c4

720

Forum Posts

0

Wiki Points

0

Followers

Reviews: 11

User Lists: 0

@Jdzspace: I understand. Tomb Raider should be on PS4 next month. Street Fighter 5 should be going to Xbox One too, but it isn't. I actually wish every game were available on PC so I wouldn't want any console.

Upvote • 
Avatar image for Jdzspace
Jdzspace

1163

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

@Defender1978: I understand exclusives made by studios the companies own. Uncharted, Halo, Mario Bros. etc. etc.

but when 3rd party multiplats are being bought up and forced to pick sides is bad.

I hate what Microsoft did to Tomb Raider, and I hate what Sony did to Street Fighter in retaliation.

when companies get into "fights" like this, gamers lose.

and nobody should support anything any company does where gamers lose.

Upvote • 
Avatar image for Mickeyminime
Mickeyminime

1595

Forum Posts

0

Wiki Points

0

Followers

Reviews: 28

User Lists: 0

Give me a free Xbox and i'll play it, if not, i'll stay with the PS3,4,PC and 360

4 • 
Avatar image for LPDisturbedHU
LPDisturbedHU

2063

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

@Mickeyminime: Why not trade in your 360 for a One? I think Best Buy has a $100-150 credit towards buying a One....

Upvote •