There is no doubt that Microsoft has been gaining momentum on the gaming front. The leadership of Phil Spencer has seen the company make huge strides, and the Xbox One has been outselling the PS4 for the past three months. This is largely thanks to the introduction of backwards compatibility and the Xbox One S. These positive strides weren’t enough to keep revenue up, though, as the company revealed that Q1 2017 (which ended September 30) revenue was down 5% from the previous quarter.
In their financial statement, Microsoft broke down the strengths and weaknesses of this quarter. “[The decline was] driven by lower Xbox console revenue, [but was] offset by higher Xbox software and services revenue.” They also reported that Xbox Live’s active users increased 21% that quarter and now stands at 47 million users. In total, the games division saw $1.9 billion in sales. Not too bad, even if it’s lower than expected.
The increase in software should come as no surprise, as Microsoft released the critically acclaimed Forza Horizon 3 during this quarter. They’ll be looking to continue to see strong software sales in Q2 thanks to Gears of War 4, and their enhanced focus on PC gaming. It certainly seems like Xbox is on the right track, which is the best case scenario for PlayStation gamers, since competition is best for the industry.
Let us know in the comments what you think of Xbox revenue being down, and if you own an Xbox One. If not, has the recent string of great exclusives, and the introduction of the Xbox One S, led you to consider buying one?