Microsoft’s Profits Are Dropping

Gamers today have more options than whatever upright arcade machine the arcade owner wants to purchase for their facility. Now, you can select not only the exact game title you want to play, but the platform you’d like to play it on. And sadly, it seems like some gamers are shunning Microsoft’s Xbox.

Drastic Decrease in Sales

Microsoft’s fiscal fourth quarter was a dismal one. The company saw an overall $152 million drop in sales. Microsoft was quick to identify the underlying problem: the Xbox One had a lower average price and all in all, the company sold less consoles overall.

Microsoft’s newest product, the Xbox One, has had a hard time keeping up with Sony’s PlayStation 4. In fact, the only month of the prior year that the Xbox One outsold the PlayStation 4 was October.

Are Things Looking Up?

Even while actual console sales are dropping, Microsoft is confident in the growth of its Xbox Live platform. Revenue and membership continues to grow in that arena. This year the company saw a 4 percent rise in revenue and from the service, and the list of monthly active gamers grew to 49 million.

Microsoft is hoping that most gamers are waiting until their new Xbox One S is released to make a purchase. The newest console is set to hit the market on August 2nd. With two terabytes of storage, a sleek design that makes the entire console 40 percent smaller and 4K ultra HD capability, the Xbox One S is sure to appeal to gamers and film lovers alike. Also, if the $399 sticker price is too high, you can purchase the console with reduced internal storage for a lower price - $349 for one terabyte and $299 for 500 gigabytes.

Even though Microsoft’s annual sales are down 4 percent and the company believes dismal Xbox One sales are to blame, they’re hoping that a redesigned, modern console will turn their projections around in the coming year.

Do you plan on buying a new Xbox One S for your game room?