Software up, hardware down in latest Xbox financial results

Microsoft has released figures for the final quarter of its financial year, showing slight overall increases for its Xbox business.

For the three months ended June 30th, revenue taken by the gaming aspects of its Personal Computing sector was reported as $1.65bn - an increase of $44m or 3% when compared to the same period the previous year.

The platform holder notes that the growth was driven by higher sales of Xbox software and services but limited by lower console sales. Revenues from Xbox hardware actually decreased by 29%, not only from a decline in the number of units shifted but also lower prices.

Xbox software and services, meanwhile, rose in revenue by 11%, driven mostly by increased Xbox Live transactions. In fact, Microsoft noted and increase in the number of active Xbox Live users, up from 49m in Q4 2016 to 53m for the past three months. This is only 2m short of the 55m reported in the firm's second quarter, which encompasses the holiday period.

The Personal Computing sector saw overall revenues decrease by $140m, a drop of 2%. While performances were strong from the gaming, Windows and Search advertising divisions, a $361m decrease in phone revenue brought the total down.

A quiet summer means Xbox is unlikely to see marked improvement in the first quarter of its new financial year, expect perhaps a spike when Destiny 2 launches in September. Hopes will be set on the always crucial Christmas and Thanksgiving period, with Microsoft launching the enhanced Xbox One X on November 7th.