Microsoft Sold 1.1 Million Xbox Consoles Last Quarter, Satya Nadella Says They Will Specifically Focus On Gaming

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During the financial earnings call yesterday, Microsoft revealed that they sold 1.1 million consoles in the last quarter. The surprising thing is that Microsoft didn’t offer specific numbers on how many of them were Xbox One. Microsoft also revealed that Xbox platform revenue increased 14% due to more hardware sales than last year. Microsoft CFO Amy Hood said that after they released the new Xbox One offering, they are pleased with the response. At E3, they reasserted their focus on games, with blockbuster titles and key exclusives coming this holiday. With the progress Microsoft is making in channel inventories, the new markets for Xbox One, and our exciting game lineup, Microsoft feel well positioned heading into the holiday season.

CEO Satya Nadella commented the following on Xbox,

I want to make a few comments on Xbox.

It’s important for us to have a core that is thriving. It’s equally important to place smart, bold bets in other areas where we have the ability to add value and have impact.

That’s what we’re doing with Xbox.

We made the decision to manage Xbox to maximize enterprise value with a focus on gaming. Gaming is the largest digital life category in a mobile first, cloud first world. It’s also the place where our past success, revered brand and passionate fan base present us a special opportunity.

With our decision to specifically focus on gaming we expect to close Xbox Entertainment Studios and streamline our investments in Music and Video. We will invest in our core console gaming and Xbox Live with a view towards the broader PC and mobile opportunity.

Source: Microsoft

  • koenshaku

    Had that done this from the get they wouldn’t be in the position they are in now. Too bad they will not be the #1 console this generation.

    • XBoxer1

      And in all likelihood, this will be the last generation of consoles.

      • Tips_y

        Probably not, based on Satya Nadella’s comment: “We will invest in our core console gaming…”
        Xbox console is growing so it will be stupidity to halt it.

        • Not_true

          Growing how?

  • pdouglas

    Does this mean if you want entertainment, you have to go with the PS4? Seriously? It is MS’ expansion into entertainment over the past few years which kept the Xbox 360 and Xbox One relevant and fresh, and now MS wants to halt this? Once again MS is snatching defeat from the jaws of victory.
    Most older users in the MS ecosystem are more into entertainment than games, and I’m sorry to say, but most users in the MS ecosystem tend to be older. So MS intends to alienate these guys? MS may be itching to placate investors who tend to be incredibly short sighted; but it really should offer leadership and tell these guys that entertainment is what has given the Xbox the edge in the consumer space over the years, and turning its back on entertainment will simply undifferentiate it, and put it at a disadvantage, as computer consumer platforms move increasingly towards differentiated entertainment experiences.

    • ZappyKins

      I’m really curious as to what information you are using to draw your conclusion – as while I enjoy the entertainment it was the games that made Xbox. Last gen the Wii had the highest level use for entertainment streaming over gaming, followed by the PS3. The Xbox 360 was actually used more for gaming by a percentage of use time on vs entertain streaming that both other consoles. Granted the X360 also had the highest number of games sold per console than the Wii and PS3 so that could explain some of the numbers.
      The Xbox is still used for much streaming and other entertainment (and Skype.) All console must now to stay relevant. They are still part of the design, just as much of a focus, but they closed the exclusive studios. Which I agree is rather sad as Halo: Forward Unto Dawn was very well made.