Xbox 360 News

Sales dropping at MS games division

Revenues down in quarter just concluded

Microsoft is blaming lower Xbox 360 sales for a fall in revenue at its Entertainment and Devices division, home to the console and related game publishing activity. While revenues were down on the previous period, losses at the division have also been cut, a result of lower expenditure.

For the quarter ending March 31st, Microsoft's Entertainment division made a loss of 315 million USD, compared with 402 million USD during the same quarter last year. MS partially explained this year's loss by the expensive launch of the Zune media player in North America, not to mention their extension of the Xbox 360's warranty.

Comparing this quarter with last year's, we also see revenue drop from 1.2 billion USD to 929 million USD - a 21% drop ascribed to 'decreased' sales of the 360 console. Given the launch of rival consoles during the same period, this drop is perhaps unsurprising, but won't make pleasant reading for MS investors none the less.

500,000 systems were shipped in the quarter - compared to 1.7 million this time last year - total installed base now standing at 11 million. Elsewhere, software sales dropped 44% too.

While the quarter just finished wasn't particularly pleasant reading for MS chiefs, then, overall the financial year just concluded was an improvement. Revenues increased 42% overall, losses dropped by 20% and, crucially, profit margins surrounding the 360 console improved. More as we get it.

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