Xbox Software Sales Go Up 11%, Though Console Revenue Declines By 29%
At the end of its fourth financial quarter, Microsoft has announced that Xbox software sales have gone up 11%, though revenue from Xbox consoles has decreased by 29%. The latter decrease has been attributed to the decreasing price of the Xbox One and other Xbox hardware, helping to offset the increase.
The increase in Xbox software sales has made that form of revenue go up to $44 million, and has been attributed to an increase in Xbox Live transactions, in yet another way that digital video game sales are starting to transcend physical media. Many gamers nowadays purchase their games online, though Microsoft’s numerous game sales have also likely helped.
Otherwise, the reason that Xbox hardware sales have gone down are due to lower console prices, along with a decline in the volume of consoles sold. The Playstation 4 has been constantly outstripping the Xbox One in most categories, so hopefully Microsoft’s hardware will experience some kind of boost when the Xbox One X comes out. The X was announced at Microsoft’s E3 2017 conference and will be releasing later this year.
Xbox Live has also experienced an increase in monthly active users, experiencing an eight percent increase year over year. This means that there are at least 53 million Xbox Live users among the Xbox One, the Windows PC, and mobile.
Altogether, Microsoft’s last fiscal year brought them $90 billion in revenue, and $21 billion in net income. While a decline in Xbox sales is cause for concern among Xbox fans, hopefully sales will increase with the release of the Xbox One X, or the release of Xbox One exclusives that people would want to buy a console for, especially since exclusives are one of the reasons the Playstation 4 is doing better.
Xbox One gamers, therefore, had best pick up the slack when it comes to games for the Xbox and Xbox software sales, if they can’t just buy a new console.