Xbox Console Sales Decline Causing Hardware Revenue Drop, Xbox Live Users Up

Xbox Console Sales Down, Xbox Live Up

Earlier today, Microsoft released its financial results for fiscal year 2016, ended on June 30th. The full figures can be seen below, and the results aren’t that great for the gaming giant. The company no longer shares Xbox sales numbers, but the report does include some data that speaks to the health of the Xbox business.

In terms of the positives, revenue from Xbox Live rose compared to the same period last year, jumping 4 percent as a result of more transactions overall and more money spent per transaction. Unfortunately, this was not enough offset decreases in hardware revenue. Xbox hardware revenue dropped by a significant 33 percent, with the downturn attributed mainly to fewer consoles sold and the lower prices of systems sold.

Overall, Microsoft’s gaming revenue for the period fell $152 million, which represents a 9 percent dip.

xbox one

Some highlights:

  • Revenue was $85.3 billion GAAP, and $92.0 billion non-GAAP
  • Operating income was $20.2 billion GAAP, and $27.9 billion non-GAAP
  • Net income was $16.8 billion GAAP, and $22.3 billion non-GAAP
  • Diluted earnings per share was $2.10 GAAP, and $2.79 non-GAAP

Results for the fourth fiscal quarter are as follows:

  • Revenue was $20.6 billion GAAP, and $22.6 billion non-GAAP
  • Operating income was $3.1 billion GAAP, and $6.2 billion non-GAAP
  • Net income was $3.1 billion GAAP, and $5.5 billion non-GAAP
  • Diluted earnings per share was $0.39 GAAP, and $0.69 non-GAAP

Below you can see a breakdown by business segment.

Xbox Console Sales

What do you think of these numbers? Should Xbox owners be concerned? Tell us in the comments below.


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