PS4 vs Xbox One: Sales For Xbox Consoles Dropped Last Quarter Compared To 2014, Revenue Down 24 Percent

By Matthew Buzzi , Updated Apr 24, 2015 11:01 AM EDT
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Microsoft's latest Xbox financial report doesn't paint a great picture for the company's consoles, with sales for the last quarter ending in a 20 percent year-over-year drop.

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The report for the quarter ending March 31, 2015 (somewhat unhelpfully) combines Xbox One and Xbox 360 numbers into the Xbox platform as a whole, making it a bit difficult to speculate about sales. Regardless, Microsoft's 2 million consoles moved in Q1 2014 has dropped to 1.6 million in Q1 2015.

Microsoft as a whole is not too bothered, with overall revenue for the quarter increasing to $21.7 billion. Still, the company has already been trailing Sony's wildly successful PlayStation 4, and a decreases in consoles sold since last year is not the trend they were looking for--especially considering the Xbox One's price has been cut to make it more competitive.

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Not only did Xbox sales quantity drop, but revenue decreased as well--likely in part due to that price drop that reduces profits on each unit sold. Revenue was down 24 percent ($306 million) compared to the same quarter last year. Of course, it is difficult to keep up sales numbers that compare to a console's launch, as that is naturally the single time when the most units will be moved. Still, Microsoft would rather see numbers that trend upwards, especially the revenues. Dropping the price is a calculated risk, and it does not seem to be resulting in more unit sales as they'd hoped.

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