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Xbox One is On the Way Up! Microsoft Records 27% Growth, Ships 1.4 Million Consoles
Microsoft has revealed their financial statements for the first quarter ended of FY 2016 and there is mostly good news for the fans of their gaming segment.
Among other upward trends they have shared that the Xbox division, spearheaded by Xbox One, is showing signs of further growth. Quantitatively, it was revealed that the “total Xbox revenue grew 27% based on strong growth in consoles, Xbox Live transactions and first party games.”
Furthermore, Microsoft boasts that they have managed to grow the cumulative revenue from Xbox and Surface by 44 percent:
Computing and Gaming Hardware revenue increased $591 million or 44%, driven by higher Surface and Xbox Platform revenue. Gross margin increased $417 million, and benefitted from the mix shift to Surface Pro 3 and Surface 3.
Talking specifically about Xbox One and Xbox 360 consoles, they have mentioned that 1.4 million units got shipped in the given quarter which is 300,000 higher than the respective quarter for last year:
Xbox Platform revenue increased $86 million or 10%, driven by higher volumes of consoles sold, offset in part by lower prices of Xbox Ones sold. We sold 1.4 million consoles in the fourth quarter compared to 1.1 million consoles during the prior year.
There is more, the “Xbox Live transactions revenue increased $205 million or 58%” which Microsoft regards as a sign of increased number of users. Also “first-party video games revenue increased $63 million or 62%” which will have a fair share of revenue generated by Minecraft.
On the flipside, it was hinted in the financials that the cost of revenue from the Xbox segment is comparatively higher than the rest of their products which, in the eyes of a financial analyst is something that needs to be fixed as soon as possible.
Here’s more on how Xbox One performed against PlayStation 4 in the month of June.