news\ Jan 25, 2013 at 11:55 am

Xbox revenues fall as gamers await the arrival of Xbox 720


If the latest sales numbers aren't indication enough that the gaming community is ready for a next-gen Xbox, then I don't know what is. The latest sales reports from Microsoft reveal an alarming trend in Xbox 360 sales.

Microsoft said revenue in its Entertainment and Devices Division -- which houses the Xbox (as well as the Windows Phone) -- were down by 11% for Q2 2012. The division generated revenues of $3.77 billion compared to $4.24 billion the same quarter last year. Operating income was nearly $596 million compared to $517 million last year, a nearly $80 million increase.

The main culprit appears to be Xbox sales. The company said it shipped 5.9 million Xbox 360 consoles during the quarter, down from 8.2 million from the same period a year ago. Xbox 360 revenue, meanwhile, decreased $1.1 billion due mainly to "lower volumes of consoles sold and lower video game revenue." This was offset "in part" by higher Xbox LIVE revenue, Microsoft said.

"Video game revenue decreased, primarily due to $380 million of revenue deferred associated with the Video Game Deferral," the company added.

As a whole, the company reported $21.5 billion revenue for the quarter and $6.38 billion in profits. Still the downward trend in Xbox sales have to be somewhat alarming. Though the Xbox 360 remains the top-selling video game console in the United States, analysts warn that "gamer fatigue" could be weakening industry sales in general.

Microsoft, along with Sony, are both expected to reveal new consoles this year. We've heard plenty of rumors and speculation surrounding the Xbox 720, which is nothing more than a popular nickname for whatever the next-gen Xbox will be called.

Matt Liebl You can follow Senior News Editor Matt Liebl on Twitter @Matt_GZ. He likes games, sports, musicals, and his adorable dog, Wrigley, and his wife.
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