We know that November and December proved to be very strong months for the Xbox brand — as evidenced by the NPD Group's reports of the Xbox One leading console sales in the United States. But it wasn't until this week that we got a better idea as to how successful the holiday season was for the company.
Announcing its financial results for the second quarter of fiscal year 2015, ended on December 31st, Microsoft revealed that 6.6 million Xbox One and Xbox 360 consoles were shipped during the quarter. Remember, that's shipped to retailers, not actually sold to consumers. While a more specific breakdown for separate console sales wasn't provided, we at least have a better idea as to how the Xbox brand performed.
Microsoft noted that Xbox platform revenue decreased 20 percent compared to the same quarter last year, which makes sense considering that was the quarter in which the Xbox One launched. The company also pointed out that "successful price promotions" were what drove sales. During the holiday season, Microsoft introduced a $50 price cut on basically all Xbox One bundles, making some very attractive offers. Realizing the success, Microsoft brought the $349 price point back earlier this month. Microsoft says the price reduction is temporary, but they have yet to announce an end date.
As expected, Xbox 360 sales declined "due to customer preference for new generation of consoles."
Other contributors to last quarter's earnings include software sales and subscription services. Revenue for first-party games was up 79 percent, driven mostly by Minecraft, following the acquisition of Mojang, Halo: The Master Chief Collection, and Forza Horizon 2. Xbox LIVE resale revenue was also up 42 percent driven by higher Xbox LIVE transactions.
As a whole, Microsoft posted $26.5 billion in revenue for the quarter, an 8 percent increase compared to the same quarter last year.
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