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Microsoft's Xbox revenue up 27% in FY15 Q4, with 1.4 million consoles sold

Microsoft's Xbox division apparently had a solid period during the fourth quarter of its 2015 fiscal year. The company said that revenue from the division was up 27% compared to the same quarter in 2014. It also stated that it sold 1.4 million Xbox consoles worldwide during the quarter, which is up from 1.1 million consoles compared to the year before. As usual, Microsoft did not break down which of the consoles that were sold were of the Xbox One, and which ones were from the Xbox 360.

Microsoft said that the revenue growth was"based on strong growth in consoles, Xbox Live transactions and first party games." Platform revenue went up $86 million, or 10%, which Microsoft said was "driven by higher volumes of consoles sold, offset in part by lower prices of Xbox Ones sold."

Xbox Live transactions revenue went up by $205 million, or 58%, which Microsoft said was due to "increased users and revenue per user." Revenues from the company's first-party games went up by $63 million or 62%, which was due in part to sales of Minecraft across a number of platforms.

Source: Microsoft (opens in new tab)

47 Comments
  • Good. I can stop buying Games. :)
  • Right?
  • Lol wrong!!!!
  • I know they may not sell as much as the PS4 however they are still making money from it. I cant wait to use the new OS look pretty good.
  • Do you know when Microsoft will release the new UI interface? I would rather use the current UI interface because I still use my Kinect as a controller
  • If the new interface is not conducive to gesture navigation via Kinect, and it seems like it isn't, I will seriously smash lots of things. I use my Kinect almost exclusively. I have already cancelled Netflix and Hulu since they inexplicably dropped gesture navigation.
  • That's fascinating that you use the gestures to navigate around. I can't get the gestures to work on my Xbox no matter what I do. The only time I get it to work is by accident. Voice works great, but gestures are unusable for me.
  • Agreed, loathe gestures. In fact I wish I could turn them off all together. Annoying when you pick your nose in front of the Kinect, and your Xbox decides to start Plants versus Zombies.
    Voice nav is excellent, but gestures, super annoying.
  • Maybe around august from the looks of things, Im running the preview program and not sign of it yet.
  • they don't make much money on xbox and WP. Revenue doesnt say how much profit they make 
  • They are making money on Xbox.
  • Revenue come from subscribers to Xbox live. I think they selling Xbox one at a loss. When a smaller and slimmer version shows up, then you'll know they're starting to make money.
  • $35 profit for each XB1
  • Me too!
  • are they making any profit ?
  • This.
  • I knew that Nadella was the worst thing to happen to Microsoft.
    When will the people that supervise him finally realize...
  • Microsoft stock the day before Satya Nadella became CEO: $37.84 Microsoft stock today: $47.28 Also, how do you comment with something like that on positive news? Duh.
  • Haha. Try expressing it more accurately. What is % gain relative to indices incl other tech indices? You must have read how to make statistics lie.
  • Actually real numbers are more accurate than % gain. % gain is the number that people use to confuse and influence other people. For example, back in the 90s people would compare Apple to Microsoft by using percentages. Apple grew 120%!!!! Yep, they went from $1 million in profit to $1.2 million in profit. Microsoft only grew 10%. Yep, they grew from $1000 million to $1010 million in profits. Which increase would rather have, $200,000 or $10,000,000?
  • 120% growth from 1 million would result in 2.2 million. And *1 billion* plus 10% would be 1.1 billion. (to you, 1100 million)
  • @Witness:
    Oh. Come on. You know very well that todays stock market prices don't reflect the real value of a company anymore, but the wishful thinking of traders and analysts.
    And by the way, if you're trying to play a numbers game: Google, which's market cap was already ahead of Microsoft's (despite being a smaller company in the physical sense) surged by nearly 70 billion $.
    So much for real value behind this game of perception/deception.
  • Google is a bubble that will soon cause their stock to loose about 70% of its value, of course unless they enter the telecom business. Google now gets 90% of income from ads from search and youtube, and we know how Facebook is now stealing Google's ad business every year. Youtube is going to have a FCC regulation soon and will probably be sized into two or more businesses since it's a monopoly hurting innovation.
  • @WindowsPhoenix Incorrect. Google was worth $15 billion less than Microsoft prior to their latest earnings report. I can now no longer take anything you say seriously.
  • You said he was the worst. Investors don't seem to agree with you. Are you saying you know more than all the analysts and investors that gave MS their current valuation? By what measure is he the worst? What would you have done differently, all-knowing-armchair-CEO?      
  • Stock market prices are not wishful thinking. Excluding day traders and fans who buy stock (combined, they only make up a small part of the stock market), stock prices are based on a combination of a company's current financial position and the best possible estimates combined by all analysts who follow and write on the company's performance based on their expectations for the future. Stock prices generally lead actual performance by about 6 months, but the lead is longer for early stage companies (because growth is expected to be further out in the future), and shorter for lower-tech or low-growth companies (where this quarter's performance is a more important driver).
  • Also 2 In 1 convertibles are going to grow in 2 digit percentage over the next 3 years according to analysts, which says why devices powered with Intel Core M are creating a new market of hybrid devices, something similar of what phablets where for smartphones.
  • There are a number of decisions he has made that I question, but the worst thing to happen? Hardly. That is not to mean that Ballmer was the worst, nor the best thing for Microsoft. I think that the free upgrade to Win10 could be a problem. They didn't make much in way of retail upgrades, but it may make people not want to upgrade their computer hardware when they can just install for free. Ballmer is taking a lot of heat for the Nokia writedown, but the CEO does not make those decisions alone, the whole board including BillG made that decision.
  • Windows 10 for free is in short term bad long term good. What I mean it will hurt Microsoft in the short term and maybe the PC industry as a whole due to the lack of sales because people are just upgrading the existing PC's to windows 10. But in the long term will be very beneficial to the windows 10 ecosystem on not just PC's but phone and tablets and Xbox.
  • Right, and particularly for MS, becausue with more Win 10 devices, they're hoping for more Store-based revenue and more interest in Windows 10 Mobile with Universal apps. Neither of these help the PC industry much, but are clearly rational strategic choices by Microsoft.
  • Good joke, he is the best thing happen to Microsoft in recent years
  • So 1.4 milion consoles sold from April to June? Thats not bad, seeying what games were out then
  • That's a gud thing
  • In the meantime Engadget focus on the massive loss Microsoft made buying Nokia, rather than showing it's massive growth, particularly in tablets... And at the same time focus on apples success, despite the failure of their watch... Not at all biased -_-
  • I stopped reading a long time ago because it was so obvious with too many editors.
  • They're like the FOX News of tech reporting.
  • Except Engadget is biased.
  • That's the joke. FOX News *is* biased.
  • Yeah, Engadget is horribly biased. I saw the headline for that article and just laughed. Par for the course for them and most other sites tho. As far as Xbox, it's going to be real interesting to see what kind of lasting strength this generation of consoles has. Both PS4 and Xbox One were selling like gangbusters for a while but I'm not so sure they will approach sales of last Gen when all said and done. Will be interesting. A side note. 8.4 million WP's is impressive in a time when it was a year since any high end phones were released. We all tried to tell them to release flagship phones and based on these #'s, a flagship phone even in the US market alone would have easily pushed them over 10 million sold. I would think maybe 12-15 million for the quarter. Interesting times indeed.
  • Xbox one is still tracking ahead of X360 in sales at this point in its life.
  • I soo can't wait for backward compatibility and miracast support to come out of preview that should surely help the sales numbers surge drastically. Well, that's providing they actually market the damn features!
  • I, for one, am convinced that MS should have kicked out their marketing team instead of the phone team. Marketing and brand image has been the biggest failure for MS.
  • Does Microsoft still make ads for the Xbox One?
  • I bought one of that 1.4 million consoles.. It would have been 1399999 otherwise B-)
  • Seems like a great thing. I do love me some Microsoft. Best company ever!
  • I have both XB1 and PS4, and enjoy the heck out of both of them. For me, as it concerns one vs the other, the Jury's still out on everything except a) the PS4 is currently outperforming the XB1 in graphics (but lets see what difference (if any) "Tiled Resources" make before we say PS4 just "wins" at graphics). b) the XB1 is currently outproviding the PS4 on multimedia options and quality, as well as having a more holistic, and cohesive (albeit less pretty) system OS than the PS4. I expect Windows 10 will only make XB1s lead here bigger, rather than smaller...but again, I'm taking a wait and see before I say XB1 "just wins" c) This part is just my own personal subjective tastes and nothing objective, but in all the following little ways, I prefer the XB1: The cosmetics of the physical consoles themselves, the look of the gem cases (though I usually like blue better than green), and the look and feel of the controller, I give em all to the XBox...so...um....eat it, Sony! ;-) So, as I said, the jury's out for me, and I don't really "have a side per se." But I think in my heart of hearts, I'm sorta "soft rooting" for XB1. Maybe in part because it's the underdog. Maybe in part because it's a part (and soon to be much more integral part) of the MS ecosystem, which with the arrival of Windows 10 I'm legitimately excited and passionate about for the first time EVER (historically been more of a Mac guy for desktop and Android for mobile)! Maybe it's because gem cases and controllers and console cosmetics matter to me more than I care to admit. I don't know. But whatever the cause, I keep finding myself secretly cheering for XB over PS4 despite the fact that PS4 is currently ruling the roost soundly with raw graphics power, and there's only the faintest glimmer of hope that Tiled Resources will ever change that. But all that to say this: I'm very pleased to see XB1 on an upswing in the market. This is really good news! Posted via the Windows Phone Central App for Android
  • Great points!