Xbox division sees 16 percent dip in sales for third quarter

Microsoft's third quarter was not kind to the Entertainment & Devices Division, which houses all things Xbox 360. Overall sales for the division hit $1.62 billion, a 16 percent decrease year-over-year. Microsoft attributes much of the losses to a "soft market," as game sales continue to decline according to NPD.

Despite carrying 15 consecutive months as the top selling console, the Xbox 360 saw a 33 percent decrease in hardware sales for the quarter. Sales for the console, which came to $584 million, were down mainly due to a "decreased volume of Xbox 360 consoles and standalone Kinect sensors sold."

Despite carrying 15 consecutive months as the top selling console, the Xbox 360 saw a 33 percent decrease in hardware sales for the quarter.

Things are perhaps not all bad, as Microsoft acknowledges an increase in revenues in other sectors; the tech giant attributes much of their sales to increased digital purchases made through Xbox Live. Total hardware sales, however, were 1.4 million, a sharp decrease from 2.7 million this time last year.

Sales for hardware have remained on track with last year, with 11.9 million shipped at the end of Q3; this is about the same amount for Q3 2010. Game revenues have slightly fallen, largely due to a lack of strong titles to match Halo: Reach's numbers from 2010.

Microsoft on the whole is seeing a stronger year in terms of revenues. Microsoft reports $17.41 billion in sales, a 6 percent increase year-over-year. The firm is in the black with $5.11 billion in net income, slightly down from last year's $5.23 billion.

"We're driving toward exciting launches across the entire company, while delivering strong financial results," said CEO Steve Ballmer. "With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead."