Microsoft Xbox 360

Weak Xbox 360 Sales Cause Revenue Drop For Microsoft

Weak Xbox 360 holiday sales resulted in a bit of a revenue drop for the folks at Microsoft.

Although sales and revenue are still quite strong, it would seem the age of the console is starting to have an effort on Microsoft’s bottom line. According to Game Politics, the company’s Entertainment and Devices made around $3.8 billion during the final months of 2012. This is down from the $4 billion the console generated in 2011.

However, Microsoft was able to generate $596 million in pre-tax profit thanks to a decrease in console’s marketing campaign and a spike in Xbox LIVE subscribers.

The company said in a statement:

“Xbox 360 platform revenue decreased $1.1 billion or 29 percent, due mainly to lower volumes of consoles sold and lower video game revenue, offset in part by higher Xbox LIVE revenue. We shipped 5.9 million Xbox 360 consoles during the second quarter of fiscal year 2013, compared with 8.2 million Xbox 360 consoles during the second quarter of fiscal year 2012. Video game revenue decreased, primarily due to $380 million of revenue deferred associated with the Video Game Deferral.”

As rumors of the next generation of consoles begin to take shape online, many gamers are waiting to see what happens in the coming months. The recent release of hardware specifications for the Xbox 720 and Playstation 4 have certainly whetted appetites for things to come.

According to Computer and Video Games, Microsoft as a whole generated around $21.5 billion in revenue during 2012. The company also posted around $6.4 billion in profits.

Although the Xbox 360 is coming to the end of its cycle, there are still a number of strong titles waiting in the wings. In addition to Metal Gear Rising: Revengeance, Crysis 3, Tomb Raider, gamers will be able to experience BioShock: Infinite and Grand Theft Auto V before the year is done.

Did you buy an Xbox 360 last year? Are you waiting to see what happens with the next generation before purchasing another console?