Microsoft’s Gaming Revenue Declines by 5% Due to Lower Xbox Prices and Sales Volume

on October 20, 2016 5:18 PM

Microsoft posted its financial results for the first quarter of fiscal year 2017 (related to the period betweem July 1st and September 30th), announcing numbers in the black for the company as a whole, as you can see in the list below.

  • Revenue was $20.5 billion GAAP, and $22.3 billion non-GAAP
  • Operating income was $5.2 billion GAAP, and $7.1 billion non-GAAP
  • Net income was $4.7 billion GAAP, and $6.0 billion non-GAAP
  • Diluted earnings per share was $0.60 GAAP, and $0.76 non-GAAP

We also get specific results for the More Personal Computing segment of the company, which includes gaming. Revenue for the gaming business was reported as $1.896 billion, and active Xbox Live users were 47 million during the quarter.


Gaming revenue declined 5% year-on-year due to lower Xbox console pricing and lower console sales volume. Xbox Live monthly active users grew 21% year-on-year to 47 million, but declined slightly since the previous quarter from 49 million.

It’s worth mentioning that the lower console sales don’t necessarily relate to the Xbox One, but they most probably come from the Xbox 360 side of the business.


 /  Executive News Editor
Hailing from sunny (not as much as people think) Italy and long standing gamer since the age of Mattel Intellivision and Sinclair ZX Spectrum. Definitely a multi-platform gamer, he still holds the old dear PC nearest to his heart, while not disregarding any console on the market. RPGs (of any nationality) and MMORPGs are his daily bread, but he enjoys almost every other genre, prominently racing simulators, action and sandbox games. He is also one of the few surviving fans of the flight simulator genre on Earth.