Xbox Sales and Revenue Shrink In 2015, So Far

Skip to story An attendee plays Halo: The Master Chief Collection for Xbox One at HaloFest 2014 in November. Microsoft

Microsoft’s Xbox gaming consoles aren’t doing as well as they were last year, the company said today.

While the company as a whole grew its revenues to $21.7 billion for the first three months of 2015, the Xbox business didn’t help those numbers. Revenue was down 24 percent compared to the first three months of 2014, Microsoft said.

One of the reasons it gave for the drop is that Microsoft sold fewer Xbox Ones and Xbox 360s—1.6 million combined units this year, versus 2.0 million last year. Microsoft did not break out sales of its new Xbox One console versus sales of the legacy Xbox 360 console.

The other reason it gave for the revenue drop is that Xbox One had a massive price cut this year. The units Microsoft sold in the first quarter of 2014 came bundled with the Kinect camera and cost $500. Later, Microsoft unbundled the Kinect and dropped the price to $400—then dropped it again to $350 before Christmas.

Earlier this month, the NPD Group said that spending on home console hardware in the U.S. in March 2015 had dropped by 29 percent ($104 million) across all platforms. Sony’s PlayStation 4 outsold the Xbox One that month.