The Xbox One isn’t doing poorly. It’s selling faster than the Xbox 360 was at this point in the generation. However, as soon as you compare it to the PS4’s runaway sales, it looks much less impressive. In fact, the sales for Xbox One are dropping, as is the brand’s revenue.
While reports are siting that Microsoft’s Xbox revenue has dropped by $306 million due to a price reduction on Xbox One, it’s worth noting that despite the price drop, fewer Xbox consoles were sold in the third quarter. There was a 20% volume decline; Microsoft shipped 1.6 million Xbox consoles in the third quarter as compared to 2 million last year.
It’s worth nothing, though, that Microsoft still refuses to differentiate between Xbox One and Xbox 360 consoles in these figures. Presumably, the Xbox 360 sales are plummeting, bringing down these numbers even further. It’s hard to say the ratio of Xbox One units shipped to Xbox 360 units, but I think it’s fairly safe to say that we’re seeing a growth in Xbox One units purchased compared to Xbox 360s.
While console revenue is dropping, Xbox Live usage has grown over 30%, driven by more users and deeper user engagement (so, Gold?). Similarly, it’s all about the services for Microsoft on the whole:
Around the world we’re seeing high interest in deployment of our cloud and server products, as well as participation in the enterprise early adopter program for Windows 10.
Everyone wants the cloud, it seems. Still, it’s worrying to see Xbox sales slipping despite numerous price drops on the Xbox One. Perhaps if they distinguished between old and new consoles we could see that this is all based on phasing out of old technology, but that the moment it just seems to reflect poorly on the company. Come on, Microsoft, stop playing with the numbers and just come out and tell us how many new consoles you’ve shipped and if that number is climbing. I’m tired of reading between your blurred lines.
Last Updated: April 24, 2015
WitWolfy
April 24, 2015 at 08:39
Thats the thing… The next gen hype train has left the station AGES ago, people who bought the consoles already went for the first one that was available in their country…
MS only has themselves to blame for only trying to cater for NA and other first world countries when they first launched. A shame really, I used to be like one of the biggest 360 fanboys last gen… Before they started RRODing of course…
Oh, how the mighty have fallen…
EVHappy
April 24, 2015 at 08:49
Fallen? lol. MS is doing very well, excellent, in fact. What about Sony? Near bankruptcy. Just look at their stock values and how much trouble Sony is in. No, you should be crying for Sony, not MS and their billions in profits every quarter.
schitsophrenic-toothbrush
April 24, 2015 at 08:53
Agreed Sony isn’t doing too hot in revenue in general but if you look at console division you have to admit that Sony is definitely picking themselves up (clearly doing something right) while M$oft is hitting a slump, i for one am quite happy as this might bring M$oft down to earth. Even though you have all the money in the world you cant force the end user to buy.
WitWolfy
April 24, 2015 at 09:10
Yes, FALLEN, MS had to restructure their WHOLE gaming division to cater to what consumer wanted. Not what they forced to consumer to take. God bless healthy competition!
MS went from being the lead runner last gen IMO to the back of the of the pack. I appreciate everything Phil is trying to do after Don left.. but its just a little too late in my eyes.
Ming, Ruler of the Universe
April 26, 2015 at 05:55
How can it be too late? Imho the X1 offers great value and I prefer the system hands down. Was insanely disappointed by the PS4. I agree that they have lost ground due to the fuck up that was the X1 launch but times have changed and the X1 is actually the better product now imho. The upcoming Win 10 unification and DX12 will only add value to the system. I think it’s about time that people start giving the ting a chance again. Sonys PS4 is far from the holy grail of console gaming people make it look like. To me it was the most uninspired and boring system I have bought in the last 30 years actually.
miyamoto
April 26, 2015 at 11:17
I really appreciate your personal views and opinion on this subject matter.
miyamoto
April 28, 2015 at 12:34
You are my new sensei master.
Lydon McG
April 24, 2015 at 09:12
This is an article about the Xbox division, not Microsoft as a whole. His comment is perfectly valid.
miyamoto
April 26, 2015 at 11:17
Precisely.
Knowles2
April 24, 2015 at 09:43
Sony stock isn’t doing too badly at the minute, and if you bought into it last year at 1500 yen per share you be look at least doubling your money if you sold them today. Shares are up 3,9% today. Losses is something of a problem for them but I suspect they will be under a billion this April and will further improve throughout the year beating most expectations.
miyamoto
April 26, 2015 at 11:19
In just one year Sony Corp.’s Market Cap increased from $21B to $36B courtesy of PS4.
Knowles2
April 27, 2015 at 00:28
Thanks for providing proof.
miyamoto
April 26, 2015 at 11:21
Here is proof. Sony in 2015.
miyamoto
April 26, 2015 at 11:24
Sony Market Cap last year.
Pieter Kruger
April 24, 2015 at 08:53
They increased their earning to $22 billion in the 1st 3 months…..”fallen”?? ROFL!????????????
Pariah
April 24, 2015 at 08:58
I’d take 0.1% of those earnings, and be a happy guy…
FoxOneZA
April 24, 2015 at 08:59
Sony hot on MS heels with a profit of $220 million in the last quarter.
Pariah
April 24, 2015 at 09:01
Damn. 1% O_O
WitWolfy
April 24, 2015 at 09:13
1st 3 months or release maybe… Just face it dude, every store ALWAYS has Xbone consoles in stock.. because nobody wants them. God at the rate MS keeps on slashing the prices they’ll be giving them to us for free in a year.
Jonah Cash
April 24, 2015 at 14:33
SamsungONE inbound bud!! Better prepare yourself for the takeover… 🙂
oVg
April 24, 2015 at 10:14
Greed, they wanted full control over the gamer and even botched a world wide release, all they cared for was the American kids.
WitWolfy
April 24, 2015 at 11:15
I think Sony caught them off guard to be honest.. Because earlier that same year Sony went on the record saying “we wont release a new console until the competition (Micorsoft) does”. And MS went like… “Sweet, we dont plan on releasing a new console anytime soon…” Then BOOM Feb came and blew the wind out of MS’ sails by announcing their new console.
Forcing MS to quickly throw something together at the last minute… Genius really.
Ming, Ruler of the Universe
April 26, 2015 at 06:13
Only that the X1 is more thought out and it has been planned with much more foresight. It is build completely with DX12 in mind, pushing new technology instead of relying on old solutions. We have seen a performance gap in the first wave of multiplat games because they have all been built on DX11, on outdated tech. The PS4 is actually holding back the X1 and within the next years people will finally start to realise that. Its a true story.
http://www.developer-tech.com/news/2015/apr/24/directx-12-unlocking-xbox-ones-potential/
The MS machine not only has a better network, offers more features, has access to a shitload more servers, it also features the smarter tech and will soon offer even mlre value via cross buy and cross play options on and to PC. Its an evolving system. The PS4 is an outdated concept really.
miyamoto
April 26, 2015 at 12:09
First it was:
“We hear that Sony in particular is determined not to come out last this time like the PlayStation 3 did this generation, so we’ll have to see how soon it can get the PlayStation 4 out the door, and whether Microsoft is motivated to prevent this from happening,” the report goes on.
Then:
“Why go first when your competitors can look at your specifications and come up with something better?”
Kaz Hirai won the mind games!
Jonah Cash
April 24, 2015 at 14:32
They are also losing in North America though… So they aren’t even winning at home any more!
miyamoto
April 26, 2015 at 11:16
Good observation.
I knew their cable TV TV TV strategy has no chance of catching on other countries outside of NA & UK.
Xbox1’s first world cable TV strategy was its achilles heel.
Among many other bad stuff like Kinect 2, DRM, No Used Game policy, NSA spyware,
schitsophrenic-toothbrush
April 24, 2015 at 08:49
Clearly Sony’s marketing strategy was so much better, I mean a console at the end of the day is for gamers and for the most part to play games. The whole “always on” and “no second hand sales” debacle from microsoft definately hit Msoft in the dick and that was well deserved plus i dont personally give 2 $hits about tv,tv,tv, sports, sports, sports then game (if you want) strategy. I for one swopped sides and went playstation because I believe they had gaming at heart.
WitWolfy
April 24, 2015 at 09:16
They day SONY killed MS
oVg
April 24, 2015 at 11:33
this still cracks me up, marketing at its best;)
Knowles2
April 24, 2015 at 09:49
Playstation have always had the strongest brand especially outside the UK/US axis, Microsoft haven’t really done anything to challenge that, Xbox 360 wouldn’t have been able to keep up with PS3 sales if Sony had release it at the same time Microsoft sold the 360 instead of a year later.
WitWolfy
April 24, 2015 at 10:52
True true, but remember the PS3’s price also scared off most of their fans and with PR like “if you can’t afford a PS3 then get a second job…” didnt help them either.
Jonah Cash
April 24, 2015 at 14:36
That was also the reason I switched back to Sony…. they are looking after the gamers first and then the rest of the stuff!
Pieter Kruger
April 24, 2015 at 08:51
Spending on new gen consoles dropped 30% in March quarter overall. Is the hype over? Good to see MS as a whole increasing it’s earnings in the first 3 months to a whopping $22 Billion! ????????????
Hammersteyn
April 24, 2015 at 08:55
If they shed the dead weight they’d make even more profits?
Pieter Kruger
April 24, 2015 at 09:00
Tell that to Sony…they might even become profitable one day!????????????
Hammersteyn
April 24, 2015 at 09:07
K
http://imageslgmr.lazygamer.netdna-cdn.com//2015/04/top-companies-2015.jpg
Blood Emperor Trevor
April 24, 2015 at 09:08
Only because they left out MS’ most profitable PC game, Excel!
Lord Chaos
April 24, 2015 at 09:10
You joke, office regularly had mini game easter eggs
WitWolfy
April 24, 2015 at 09:36
Minesweeper GOTY!
Skyblue
April 24, 2015 at 10:01
Well played.
miyamoto
April 26, 2015 at 12:16
One just can’t go against facts without breaking themselves.
Knowles2
April 24, 2015 at 09:50
They been shredding a tonne of weight over the last few years.
Blood Emperor Trevor
April 24, 2015 at 09:00
But they got rid of the Kinect?
Lord Chaos
April 24, 2015 at 09:01
They did. Then Zyanga did. 😛
Hammersteyn
April 24, 2015 at 09:01
Oh snap
Spathi
April 24, 2015 at 09:12
Still waiting for the source on yesterday’s “Sony You Tube Witcher 3” comment. Not saying it’s not true, but couldn’t find it myself…
Brady miaau
April 24, 2015 at 09:13
I also spend a minute or two scouring google. Looked interesting
Hammersteyn
April 24, 2015 at 09:33
Keeeeeeeeeeeeeeeeeeeeeeeep waiting
Lord Chaos
April 24, 2015 at 08:51
Ironically, when I finally jump into current Gen I’ll get the One first.
Pariah
April 24, 2015 at 08:52
Same here, lol. I don’t know what it is, but I just find the One more appealing.
Hammersteyn
April 24, 2015 at 08:53
Bigger is better?
Lord Chaos
April 24, 2015 at 08:53
You should ask her.
Hammersteyn
April 24, 2015 at 08:58
hahahaha wait
*looks for a her
Pieter Kruger
April 24, 2015 at 09:04
*sends her back…….
Hammersteyn
April 24, 2015 at 09:08
You found one?
Guest
April 24, 2015 at 09:27
*Checks for a pulse.
Blood Emperor Trevor
April 24, 2015 at 08:56
If you’d jumped sooner you could’ve gotten the first One.
Pariah
April 24, 2015 at 08:57
According to *some* people, the only One.
Lord Chaos
April 24, 2015 at 08:58
And it shall be named Duncan
Pariah
April 24, 2015 at 08:58
ALL THE UPVOTES!
Hammersteyn
April 24, 2015 at 08:59
Does it use the McCloud for gaming?
Hammersteyn
April 24, 2015 at 08:58
XBOX One : The Third….
Dawid Eduard Roestorf
April 24, 2015 at 09:04
Bad choice tbh. As it stand now, for a gaming console, you cannot beat the PS4. X1 is nice, but go and borrow one for a week, after that I promise you will switch to PS4
Lord Chaos
April 24, 2015 at 09:05
If I want serious gaming I’d play on PC.
Some games just feel better on console, and the One controller is personally much more comfortable than the 4.
Brady miaau
April 24, 2015 at 09:08
No, I think that is your personal preference. I know several people that cannot stand the Ps4, for example.
Fish
April 24, 2015 at 09:26
I disagree, I have both in my home and they both have different appeal factors. The xbone os is way nicer to use and the multitasking is very useful. Using it on my DLNA network for movies is a pleasure and ironically, something that the PS4 cannot do. In fact the PS4 cannot even play a audio CD!
The PS4 is a supreme machine but problems with PSN really let it down. From a gaming aspect there really is not that much difference unless your a spec junkie!
Dawid Eduard Roestorf
April 24, 2015 at 09:53
How 2 people’s taste differ. I think the X1 OS and UI is a complete mess. Multitasking means your system is using resources for others risks, hence why it is lacking in comparison to PS4.
PS3 I use for all my media needs, as it is very good at that.
X1 is not a bad system. But just switching it on makes me grind my teeth. Ori and the blind forest is brilliant but the pain of using X1 has stopped me from wanting to play it.
Skyblue
April 24, 2015 at 10:00
The only thing I have found lacking about the Xbone is exclusives. I don’t find the UI nearly as problematic as accessing PSN and the controller is still far superior to the PS4. I still spend 80% of my console time on my PS4 though but that is down to game choice.
Dawid Eduard Roestorf
April 24, 2015 at 10:01
I Prefer the X360 controller to X1 controller, and PS4 controller for me is on par with the X360 controller. X1 controller to me feels heavy and does not sit well in my hands. Though I have smal hands
Skyblue
April 24, 2015 at 10:04
The PS4 controller is not on par with the X360 controller, not anywhere close. That said it is a VAST improvement on the terrible PS3 controllers which I modify with add-ons to make long sessions bearable (I use add-on concave thumbsticks and triggers).
Each to their own.
Dawid Eduard Roestorf
April 24, 2015 at 11:44
For me the PS4 is controller is on par. I regularly play long sessions, without add on’s.
My X1 the controller causes cramps in my hands after about 45minutes of use, with my wrists aching after 90 minutes, that I have to put down the controller.
The X360 controller also caused cramps for me, but only after about 4hours.
PS4 controller I have not had any cramps every.
PS3 controller was crappy, we can all agree on that.
Advantage for X1 controller, batteries last longer, downside, if you did not buy a battery pack, changing batteries is a chore I can live without.
WitWolfy
April 24, 2015 at 10:55
Here here!
Fish
April 24, 2015 at 10:06
Yes indeed… good that we have choices. However, multitasking is good, although I don’t use the snap feature as its way too distracting. At the end of the day it’s down to personal preference. As I said earlier from a gaming aspect there really is not much difference… game content is way more important that resolution and FPS. I was a huge PC gamer but the cost of keeping up with latest tech was getting out of hand.
Skyblue
April 24, 2015 at 09:56
From a gaming point of view, it would be a misstep. I own both and don’t have too much reason to turn on the One anymore. PS4 currently has the better exclusives and way more in the pipeline imo.
WitWolfy
April 24, 2015 at 11:01
Thats the problem MS always had.. Next to no exclusives, it irritated me to no end when near the end of 2010 PS3 started getting all those awesome exclusives last gen, so I bought a PS3 as well and barely used the 360 again after that.
I remember back in 2011 when MS were closing down 1st party studios like there was no tomorrow and its def showing this gen…
Skyblue
April 24, 2015 at 11:34
Agreed. I did the same last gen, when Demon’s Souls hit I bought a PS3 immediately and I’m still currently busy with some of the backlog on there (only finished Uncharted 3 last week).
Making the situation even worse is that the X1 is behind the PS4 in the graphics dept graphically and “timed exclusives” is a rubbish policy doomed to fail imo.
Mr Spencer has hinted at some interesting developments at E3 this year so we can hope.
Hammersteyn
April 24, 2015 at 08:52
Just hold on guys DX12 is coming, don’t buy PS4s just yet
Lord Chaos
April 24, 2015 at 08:53
*Support Steam
Skyblue
April 24, 2015 at 09:53
*Support GOG, the real Games-for-Gamers leaders
Dawid Eduard Roestorf
April 24, 2015 at 08:55
DX12 will do nothing for the X1. Go get that PS4, Steam Machine whatever.
I have had a X1 since launch, and tbh, with the bad UI, I hardly switch the thing on. It is not a bad machine, but it is not a PS4
Hammersteyn
April 24, 2015 at 08:57
XD sshhhhh I’m being supportive over here
Dawid Eduard Roestorf
April 24, 2015 at 09:02
Don’t baby MS and the X1, they need to grow up 😛
Pariah
April 24, 2015 at 09:10
Maybe “grow” isn’t what it needs…
WitWolfy
April 24, 2015 at 11:06
One would think with such a huge box they could at least made the power brick internal… One of the many reasons I dont want one.
Pariah
April 24, 2015 at 11:26
I don’t know, all that heat in the box? No thanks. I’m quite happy with my 360’s setup. Power brick outside the console means less heat, which is fine. It sits behind the wall unit anyway, it’s not in the way.
Brady miaau
April 24, 2015 at 09:07
Well, I still enojy mine. Wife uses it everyday too, not for gaming.
Dawid Eduard Roestorf
April 24, 2015 at 09:08
Is it used for a door stop? A step to stand on? Paperweight? lol j/k
Brady miaau
April 24, 2015 at 09:09
Nah, youtube, media content off DVD’s, that sort of thing.
Also, we control it by voice. You cannot beat that feeling!
Dawid Eduard Roestorf
April 24, 2015 at 09:12
My son loves the kinect, to bad kinect hates him.
As for voice, Xbox does not like my accent, lol.
A tip for all kinect users, if you have a black carper, or dark wood flooring and a dark couch, Kinect goes bonkers. Nuts, cimpletely haywire.
Brady miaau
April 24, 2015 at 09:15
Funny, TV room has stone, light coloured tiles (with white walls), while the dining room, lounge all has super dark wood. Good to know.
Kinect works fine for both my wife and myself voice. Very clever, to be honest. MUST configure the microphone twice I would say.
AND my kinect refuses to “see” my little girl of 17 months running around! Amusing, so she cannot log in yet? Not that she needs to or wants to
Dawid Eduard Roestorf
April 24, 2015 at 09:18
I have configured my mic 6 times already, it just hates me. Then friend comes over and it works perfectly for him.
As for kids, my son is 7, he spends 25 out of his 30 minutes jumping up and down for the kinect to recognize him. Which is kind of sucky. But those 5 minutes of play time is pure bliss for him.
Brady miaau
April 24, 2015 at 09:19
Yeah, Kinect Sports Rivals is kinda fun, actually. Seriously fun. AND TIRING
so my theory of a two and a half year kid playing kinect Zoo game is a bit of a pipe dream then?
Oh well, will still try.
Dawid Eduard Roestorf
April 24, 2015 at 09:23
It might be the dark wood flooring and dark couched in my house.
WitWolfy
April 24, 2015 at 11:07
Must be epic saying “Xbox off” when some is about to beat your high score, then to see the look on their face as they die a little inside.
Ming, Ruler of the Universe
April 26, 2015 at 06:39
Not working like that. You need to confirm that command. VC is actually really great and one factor why playing on the PS4 feels terribly uninspired and outdated to me.
WitWolfy
April 24, 2015 at 11:07
My Wii U is used as a door stop hahahaha
Pieter Kruger
April 24, 2015 at 09:10
“DX12 will do nothing for the X1” Well it would’ve been nice if you could’ve told MS that BEFORE they decided to go and design a console with hardware based on DX12……????
Hammersteyn
April 24, 2015 at 09:32
Like they did with “the cloud”?
Ming, Ruler of the Universe
April 26, 2015 at 06:43
You mean like Sony not even making triple A Vita games for their great “PS4 on the go” system anymore. Screw you#forthevitaplayers. *+have also been sued for false advertising*…Beautiful…and some people have been buying dedicated MC’S for 150 bucks. Where is The Last Guardian btw. I bought a PS3 for that.
K1FF J1MB0B (sizzle edition)
April 24, 2015 at 14:40
“hardware based on DX12″… megalulz!
Ming, Ruler of the Universe
April 26, 2015 at 06:34
The PS4 is the system built on outdated concepts. Better get used to it. Dead serious here.
WitWolfy
April 24, 2015 at 11:05
LOL DX12 wont do crap for XBONE, just wish blind fanboys could see that. Whats next, a extra memory adapter like what the N64 had?
Various devs in the industry said that the DX12 upgrade wont really make a significant impact to the XBONE so I dunno why every second dude acts like its the holy grail of software updates.
Ming, Ruler of the Universe
April 26, 2015 at 06:47
Because…….it kind of is 🙁
http://www.developer-tech.com/news/2015/apr/24/directx-12-unlocking-xbox-ones-potential/
Ming, Ruler of the Universe
April 26, 2015 at 06:32
I would actually honestly advice everyone to do exactly that.
I think the perception of the One will drastically change in the coming months and years. The system has so much more to offer than people seem to realise. (See posts above)
Blood Emperor Trevor
April 24, 2015 at 08:55
I don’t understand why these companies always want to get engaged with me, but never married. Why are they so afraid of commitment?
Lord Chaos
April 24, 2015 at 08:56
They’re not. They’re afraid of you.
*Runs
Pariah
April 24, 2015 at 08:56
LOL!!!
Hammersteyn
April 24, 2015 at 08:58
You’re on fire today!
Blood Emperor Trevor
April 24, 2015 at 08:59
Not yet. I mean, haha what?
Lord Chaos
April 24, 2015 at 08:59
Was wondering what that smell was
Blood Emperor Trevor
April 24, 2015 at 08:59
I can be nice to people. 🙁 … I just don’t want to.
Brady miaau
April 24, 2015 at 09:06
well said!
FoxOneZA
April 24, 2015 at 09:02
What’s it flamebait Friday already? There’s so much assumptions in this article that I assume Peter Moore will be dropping HL3 deets today 😛
Brady miaau
April 24, 2015 at 09:06
I hope that Xbox One picks up with Dx12.
I would hate the situation to be that big devs choose PS4 because of lack of numbers on MS side. Competition is good for us all in the long run.
AND I have a One, so……
Dawid Eduard Roestorf
April 24, 2015 at 09:07
Trade it in for a PS4 😛
X1 has almost hit 10mil in sales though, so won’t see devs jump ship
Brady miaau
April 24, 2015 at 09:09
they might if it is 5 to 1 in actual users, not sales
*Edit* VOICE CONTROL ROCKS
It works, it really, really works.
Dawid Eduard Roestorf
April 24, 2015 at 09:10
PS4 users are very high tbh. On my X1, hardly see anybody online these days
Voice control works, for some people. Voice control on PS4 works for everybody
oVg
April 24, 2015 at 10:11
I called this 2 flipping years ago. When I was thinking about upgrading my 360 to a One I did a 180 and moved to the dark side.
Only 2 games Interest me, Quantum Break and the Alan Wake remaster, the rest are all 3rd party with a better res on the PS4. Compare the top ten games on Metacritic, 2 years in and that is all they have to show, fcuking GTAV.
Skyblue
April 24, 2015 at 11:35
Yeah, there is no compelling reason to currently purchase an Xbone. We wait on Mr Spencer and E3…
Jonah Cash
April 24, 2015 at 14:31
Just keep in mind that is still just shipped numbers… not sold through numbers… SamsungONE inbound!!
Guest
April 26, 2015 at 10:49
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conrad martin
April 27, 2015 at 17:36
Thank you Zoe. Because Microsoft is hiding/distorting the truth – I will buy a PS4.