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Xbox One X Helps Boost Hardware But Game Sales Fall In Microsoft's Latest Quarter

Also, Microsoft reports that it had 59 million Xbox Live active users, which is up from last year.

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Microsoft today reported earnings for its latest quarter ended December 31--and the news is good for the company's Xbox gaming division. Total revenue rose by $303 million (or 8 percent) to $3.9 billion. The uptick in sales was driven in part by the launch of the Xbox One X in November. Microsoft has not disclosed a sales number for the console but it did sale the Xbox One X launch helped Xbox hardware revenue rise 14 percent.

Xbox games also sold well during the quarter, with software and services revenue jumping by 4 percent. This growth was attributed in part to better Xbox Live revenue, but offset in part by lower game sales due compared to the same period last year.

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Xbox software and services combined revenue increased 4%, primarily due to Xbox Live revenue growth. However, this was offset in part by a decrease in game sales revenue compared to the same period last year.

Microsoft also updated the latest Xbox Live active user figures; during the quarter, Microsoft recorded 59 million Xbox Live active users; this covers Xbox 360, Xbox One, Windows PC, and other devices. This is up nicely from 55 million during the same period last year. An "active" user is someone who has logged into Xbox Live over the past 30 days.

Overall, across all divisions, Microsoft reported revenue of $28.9 billion for the quarter, which is up 12 percent. Operating income came in at $8.7 billion, an increase of 12 percent.

Microsoft is holding an earnings call right now where it will discuss these results and answer questions from analysts. We'll report back with more information if anything noteworthy is discussed.

Got a news tip or want to contact us directly? Email news@gamespot.com

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RighteousNixon

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Edited By RighteousNixon

I am super happy with Xbox right now, both with the quality of the hardware and their focus on moving to a universal system so no more backwards compatibility is needed. That combined with the backwards compatibility for both Xbox 360 titles and even some original Xbox titles now shows how much effort MS is putting into making sure Xbox gamers can keep their games and continue to play them regardless of what hardware you own. That has always been one of the biggest advantages that PC gaming had over console gaming, but no more.

This one move alone has made me FAR more happier with my Xbox One than My PS4 this generation. PS has had some great games, but their approach to backwards compatibility is terrible IMO. Offering people a pay service so they can pay for the games they already own again. IMO, this entire aspect to both of these consoles is without question one of XBox's biggest advantage now. I still own all of my original XBox and XBox 360 games, as well as most of my PS3 games, as I love going back and replaying older games that I loved again (PLEASE add Blood from from the original Xbox to the backwards compatibility list!!!) so again, at least for me this is one of the biggest advantages to MS's entire approach to the market right now and I would be lying if I said I wasn't disappointed that Sony hasn't matched MS on this front.

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dimetro7

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I have been really happy with my X. PubG and Cuphead have been keeping me plenty busy and I’m looking forward to state of decay 2 and sea of thieves. I think things are going to continue to improve in the coming months.

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jenovaschilld

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MY biggest problem with Micosofts xbox library is lack of variety and the reliance on FPS and 'bro' games which have just gotten stale since its height during the 6th, 7th gen. I am a huge xbox fan, having purchased the xbox, xbox 360 at launch, but the xbox one really doesn't offer enough first party exclusives or a large enough diverse library. Like many have said, you can find the same game elsewhere.

One huge genre that is absent - RPGs, CRPGs, and JRPGs. There is a huge renascence of rpgs coming to every console that are getting made, bought, and played rabidly. I know not everyone likes a story like game or one that has a huge amount of reading, but there are a ton of gaming consumers that do and are showing it with lots of software getting sold.

IF MS has given up this 8th gen and just killing time for a couple more years until the 9th gen comes along, then they really need to start investing in new first party studios with a varied genre of new IPs that will start pumping out some great games that are not all Halo clones. A gaming console should be a console to play games on first, not a TV, DVR, multimedia, social network, blah blah, that also just happens to play some multi-platform games, even if it plays them pretty for $500.

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MichelleBennet

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Lower game sales??

PUBG has sold around 4 millions on Xbox one....

so, I don't know what they mean with "lower"... And things will get much better now with Microsoft Exclusives coming to GamePass on day one.

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imajinn

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Edited By imajinn

@michellebennet: I didn't read any drops in % but even if so. If pubg is listed in there, it'll only be for 2017. And one game at 4 million doesn't mean MS as an overall in software revenue has risen

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KillerCondoms

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Hardly anyone is buying new games, they are all busy playing older games from past generations.

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jenovaschilld

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@killercondoms:Well not at all, software (games sales) are at an all time high right now for the gaming industry. Across all platforms games are selling well, the calls of the console is dead far from true. Mobile game sales are not as great as predicted. And computer predictions are unsure do to high hardware costs.

But one thing for sure is there are a ton of games being released from new IPs, sequels, and of course remakes/updates of older ones. But I've been gaming since the 80s and just about every game from then on is a remake of a game from a past generation.

And the best thing is, developers are at an all time high in funding - industry wide 108 billion with a 7-8% year over year increase. New games are getting made, bought, and played- yes some may be remakes from older past generations, but one thing is for sure there is more choice and games now then ever. To give you an idea, i remember one Nintendo console that launched with 2 games and after a year they had a about 12-13 games altogether. Then current Nin Switch has 650+ listed, amazing.

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motopram

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@ericthegreat: I have an X1x and games do not run like butter at 4K, some games do, Forza, CoD, NBA 2k etc and others are horrible like monster hunter, fallout 4 and AC origins. I'm not blaming the hardware, i'm just saying not all developers are able to get the most out of the console.

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walbo

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@ericthegreat: fallout 4 is great in 4k.never got round to finishing it the first time round due to the long load times and 360 graphics but now it feels like a brand new experience.

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spo562

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I hope Xbox can turn it around. I would hate to see it fail and allow Sony to have a monopoly on gaming. I like both systems and believe competition is good for gaming.

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WllDan7

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@spo562: Do you know the switch exists? I thought we were past discounting Nintendo.

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spo562

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@WllDan7: It's just not for me, but I'm glad it's doing well. :)

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Thelostscribe

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@spo562: Xbox will most likely never catch Playstation this generation, that doesn't mean they can't shift a respectable number of Xbox One's. Even if they only break 50 million, it's not a failing number. They are making profit in their gaming division and they have Microsoft behind them. The only way I see Microsoft dumping Xbox is if Xbox Live numbers crashed and the next system sold like the Wii U.

I hope Phil Spencer and the Xbox team learned from the terrible launch of the Xbox One. If you have been watching, Phil essentially relaunched the Xbox One platform over the last year and a half with the S and X. Removing the lost power of the Kinect for the S and making it streamlined, with the UHD drive and HDR support. Of course the X puts them on top of the power portion of home consoles.

Xbox One is doing pretty good considering they basically had to rethink the whole operation of the platform when it comes to strongly relying on Always On Internet connection to that allowing Cloud Processing to make up for the lesser processing power the PS4 had. I have a feeling the next Xbox launch will be totally different.

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spo562

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@thelostscribe: I hope so. Xbox One X is a great system. Now it just needs the games. Hopefully more exclusives. :)

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Thelostscribe

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@spo562: I agree.

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suicidesn0wman

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Eddie so desperate to make the narrative about poor game sales he had to write it in the article twice...

Personally, I wonder if Destiny 2 and Battlefront 2 flopping had anything to do with the reduced revenue... Though they both sold well, they didn't sell that well, certainly not as much as Rise of Iron and BF1 had the year before...

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jyml8582

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statistics show that Xbox One X owners are only interested in the hardware. Why would you buy a console if not for playing games? what's wrong with these people?

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chiefwiggum16

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@jyml8582: yeah pretty sure ppl bought the 1X to play games and not look at the console.

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walbo

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@jyml8582: i have 128 games ready to be installed on my x and i olso have a life to play with so wont get round to finishing them all lol.olso have a ps4 for there exclusive games that I like which comes to the grand total of 7 games with a few being ps3 remasters.

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UltimateBastard

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@ericthegreat: what's the games?

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chiefwiggum16

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@UltimateBastard: do your own research dingbat

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UltimateBastard

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@chiefwiggum16: it was more of a rhetorical question dingbat.

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videogameninja

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Edited By videogameninja

"In" before ... "what games?"

-TOO LATE NINJA APPROVED-

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Thanatos2k

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Because there's nothing to buy.

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aross2004

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Edited By aross2004

@Thanatos2k: At least 95% of releases land on both PS4 and Xbox One. So how can there be nothing to play on Xbox? And as an owner of both a Pro and a OneX, I can attest to the fact that a lot of recent multiplat games are better on the OneX. Sony fucking kills it in the exclusives department however, but that's still a far cry from saying there's nothing to play on Xbox.

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Thanatos2k

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Edited By Thanatos2k

@aross2004: Maybe you should have gotten a PC, and then your multiplat games would be even better.

I have one. What reason is there to get an Xbox again?

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deactivated-5afeea4d8be41

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@Thanatos2k: When the PC gaming community involves characters like yourself, you can count me out.

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Thanatos2k

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@graffitiheart: You've previous said that plugging an HDMI cable from your PC into your television was too hard, so yeah, PC might be a bit beyond you.

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deactivated-5afeea4d8be41

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@Thanatos2k: Not really what I said, but OK dude. You do you.

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Thanatos2k

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Edited By Thanatos2k

@graffitiheart: Also you do you has got to be the weakest comeback possible, basically admitting everything the person just said was true. You could add just a touch more bitterness. It's also laughable suggesting the Xbox multiplayer community isn't demonstrably the worst on the planet but hey, when all you've got is feeble insults, "you do you"

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deactivated-5afeea4d8be41

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@Thanatos2k: https://m.popkey.co/ce8eae/eA1kQ.gif

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aross2004

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@Thanatos2k: You completely dodged my question.

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Thanatos2k

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Edited By Thanatos2k

@aross2004: I answered your question. If I have a PC, what is there to play on the Xbox? Nothing. Nothing at all.

You attempted to insinuate that you cared about how the games perform, which if you really cared you'd be playing them where they perform best - and again that's not an Xbox.

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aross2004

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Edited By aross2004

@Thanatos2k: So every game I can play on Xbox is on PC? Didn't realize that...

Do the same rules apply for PS4 as well then?

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Thanatos2k

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Edited By Thanatos2k

@aross2004: "So every game I can play on Xbox is on PC?"

What games worth playing came out during the last year for Xbox One that weren't on PC? I'll wait.

Also Microsoft has said there will be no more Xbox exclusives, further illustrating the pointlessness of the platform.

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deactivated-5d14bade6a0c4

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@Thanatos2k: Halo 3, 4 and 5, Rare Replay, Fable III, Forza Horizon 1 and 2, Gears of War 2 and 3, Halo Reach, Losy Odyssey, Red Dead Redemption, Silent Hill Downpour, Soul Caliber 2, Sunset Overdrive, Virtua Fighter 5 and Battlefield Bad Company to name a few.

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Thanatos2k

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Edited By Thanatos2k

@ericthegreat: I mean, lying blatantly doesn't make any of what you said true.

It's not much cheaper, it's now slower to get games running and more of a hassle than Steam, you can play a PC on a couch thanks to the magic of something called an HDMI cable, and the hardware is indeed the same, removing any advantages whatsoever that consoles ever had.

If you truly think it's "easier" then the difficulty doesn't lie with the PC......

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walbo

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Edited By walbo

@Thanatos2k: of course its much cheaper.my 2 year old custom build has recently been retired for the x which need no faffing about to get games to run properly and the x isint going to be needed to upgrade part by part.as a long time pc gamer I can honestly say the x Is a great buy (its practically a very good mid range pc)without the hassle of incoming upgrades.the flaw in your opinion is you seem to think all pc are the same but with a bit of research you will see the vast majority of pc users run there games around the same as the x or even pro.

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JoshRMeyer

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@ericthegreat: I hope you're right... It's mind boggling why it hasn't happened yet. Or why it took so long to get crossplay support with PC(Windows). Then again, think of games like PUBG... Why not just put the PC version on Xbox? With USB m/kb support or optional controller? They seem to be wanting to isolate console gamers from PC, which doesn't make sense. I experienced this with FFXIV on PS4. It was amazing that I could use my wireless m/kb, plug and play USB, and be playing with my PC friends who payed way more for their PC setup. For some reason I loaded into levels quicker then them too. Not sure why more games haven't gone this route. Again, PUBG is a perfect example. I wonder if Sea of Theives will have kb/m support?

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Thelostscribe

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Edited By Thelostscribe

@Thanatos2k: There are plenty of games to buy on the Xbox One, haven't you gone into a store recently? Or looked at the digital game store? I hear they play and look better on the Xbox One X than any home console.

OHHHHHHHHHH, you were referring to exclusives. Very original.

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PSYCHOV3N0M

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@ericthegreat: It’s “I couldn’t care less.”

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deactivated-5b2c8e0382c99

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@ericthegreat: It’s “I couldn’t care less.” If you “could care less” it means you care, at least to a degree. When you “can’t care less”, it means you care so little, you couldn’t possibly care any less. How do so many people not know this? It’s very basic logic.

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Thelostscribe

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@ericthegreat: I mean I get it, it sucks that we don't have 8 exclusive games coming out on Xbox every year or so, but most of the older exclusives were fantastic and the three new ones coming this year that we know of look good too. However, depending on how many games you buy, a large bulk will be multiplats.

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JoshRMeyer

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Edited By JoshRMeyer

@ericthegreat: 90% or those 95% are trash games though... So you have 5% good multiplat and 5% good exclusive.(I obviously made up those numbers but they're probably close to accurate).

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NativePixel

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Edited By NativePixel

holy $28.9 billion in one quarter!!

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rtehrani

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@nativepixel: I thought a quarter was 25 cents? Haha jk....

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