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Xbox 360 Sales Are Down 29% Due To Being Old And Haggily
Microsoft released some new numbers for their home console division and it's not looking too good, especially if they plan on keeping all their load placed on the shoulders of the Xbox 360. While overall, Microsoft's revenues were up across most brands and net income was solid, there was one division that was slogging behind like a one-legged drunkard in a 100m sprint at the Olympics...and it was the Entertainment and Devices Division, otherwise known as the Xbox division.
GameIndustry.biz has a rundown of the numbers, citing a net income for Microsoft of $6.38 billion and overall revenue at $21.6 billion, the Xbox division did $3.77 billion in the last quarter compared to $4.24 billion in the previous year. Operating income, however was at $596 million over $517 million of the previous year, but that was attributed to the subscription hike in Xbox Live.
In a statement released by the company, it's noted that...
"Xbox 360 platform revenue decreased $1.1 billion or 29%, 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."
In simple terms, people already have an Xbox 360. It's an old and haggily console that no one wants anymore and it's lived it's life out longer than a turtle in Bali without tourists.
Gamers, enthusiasts and casuals alike are all awaiting the next generation and anyone who wanted an Xbox 360 has one by now and anyone who has one is waiting for the next-generation because, well, they already have one.
As for the software sales...there isn't much to say here considering that throughout 2012 there were hardly any exclusives on Xbox 360 to move the console outside of Halo 4, which really wasn't anything new that Halo: Reach didn't already accomplish on the archiac hardware.
Eyes now are entirely focused on this year's E3 tradeshow in June, where Microsoft has already announced their press conference. If MS doesn't drop news about a new console, then expect the entertainment division to continue to slip into financial oblivion.
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