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Global Xbox sales on the decline

April 20, 2012 • Gadgets and Gaming, Top Stories

Electronics and software maker Microsoft has revealed that sales for its hugely popular gaming console have been on a steady decline for the last financial quarter.

Microsoft's Xbox360 (image: Microsoft)

Global sales of Xbox360 consoles were down from 2.7 million units between 1 January and 31 March to only 1.4 million units sold – a drop of 48%. Another Microsoft product that experienced a dip in sales was the Kinect peripheral for the Xbox, although Microsoft declined to supply numbers.

The only aspect of the Xbox that saw any growth was the online offering Xbox Live. With Xbox Live, players are able to compete in various titles and also download the latest games – at an annual fee. The company also revealed that lifetime sales of Xbox360 unit are currently at 67.2 million.

“Total Xbox 360 revenue fell by 33 per cent to $584 million. However, Microsoft added that this was partly offset across the company’s Entertainment and Devices Division (EDD) by increased revenue from Skype and Windows Phone software license cash from Nokia,” Eurogamer wrote.

Although the EDD department saw a drop in revenue, the entire Microsoft Group made a profit. The total revenue for Microsoft rose to $17.4 billion in the first quarter, which translates into a 6% increase year-on-year.

“We’re driving toward exciting launches across the entire company, while delivering strong financial results. With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead,” said Microsoft CEO Steve Ballmer.

Charlie Fripp – Consumer Tech editor

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2 Responses to Global Xbox sales on the decline

  1. Could this just be saturation of the product? given you can also re-sell your console.

    • Charlie Fripp says:

      It might, but we'll have to wait for Sony's PlayStation figures to be released in order to see if it's an industry-wide trend. The decline might also have been fuelled by the rumours of a new Xbox this year, which will cause people to buy less consoles as they wait for the new one to be released.

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