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Xbox Revenue down on Price Cut, Still Way behind PS4 Sales

Posted by: , 16:00 AEST, Tue May 5, 2015

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Xbox One sales catching up to PS4 sales, but at a snail's pace and at the expense of revenue
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Image/Photo Credit: Microsoft

Microsoft have reported a massive 24 percent decline in revenue in the January to March quarter due to temporary and permanent Xbox One discounts.

Microsoft officially cited an "increased mix of lower price Xbox One" consoles for the revenue decline in total Xbox revenue, without breaking it down to the Xbox One and Xbox 360 consoles. Overall hardware sales was only down 4% thank to rising Surface tablet sales (up 44%).

For software and services, one highlight was Xbox Live usage, which grew at over 30% for the quarter.

The discounting has helped Xbox One sales in the U.S. in particular, with the Xbox One beating the PS4 during the crucial holiday period, but worldwide sales still lag behind the PS4 in a major way.

Worldwide sales data shows that for lifetime sales, Sony sells between 1.56 and 1.79 PS4s for every Xbox One sold (the range is due to estimation of Microsoft Xbox sales data, which includes both Xbox 360 and Xbox One sales). 

But when comparing the sales difference between Q1 2014 and Q1 2015, the Xbox One appears to be closing the gap. Back in 2014, Sony sold 1.8 million more PS4s than Microsoft's Xbox One, but in 2015, the gap has now shrunk to between 1.1 and 1.3 million.

The Wii U's market share continues to shrink, from 41% of all shipments in Q1 2014 to only 21% in 2015.


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