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Xbox 360 sales slow for Microsoft in Q4 as we await Xbox One

Microsoft shipped just one million Xbox 360 units for the fourth quarter ended June 30, 2013. Although the company reported a quarterly revenue of $19.90 billion, the Xbox 360 was of little help, with sales down from the 1.1 million in Q4 of fiscal 2012.

It wasn't all bad news for Microsoft's Entertainment and Devices Division, home of the Xbox group, which actually increased its revenue. Overall, the EDD's revenue was up $134 million to $1.8 billion, an 8% increase over the previous quarter. But while the quarterly transactional revenue within Xbox LIVE grew "nearly 20%," much of the division's growth is due to the Windows Phone which accounted for a $222 million increase.

During this quarter, Microsoft unveiled its next-generation Xbox One and sales indicate we are definitely ready for it to be here.

“We are working hard to deliver compelling new devices and high value experiences from Microsoft and our partners in the coming months, including new Windows 8.1 tablets and PCs,” said Steve Ballmer, chief executive officer at Microsoft. “Our new products and the strategic realignment we announced last week position us well for long-term success, as we focus our energy and resources on creating a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value the most.”

As announced last week, Julie Larson-Green will be the new head of Xbox hardware, following Don Mattrick's departure from the company earlier this month. As part of Microsoft's strategic realignment, Larson-Green will lead the Devices and Studios Engineering group which will replace Microsoft's Interactive Entertainment Business. She will be responsible for "studios experiences including all games, music, video and other entertainment" and oversee all of Microsoft's hardware development — including the Xbox brand.

Matt Liebl

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Matt Liebl

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