Xbox LIVE Drives Microsoft's Revenue While Retail Falters

Recent figures released by Microsoft have shown an overall increase in quarterly revenues, despite a small slump in sales at retail, an increase Microsoft believe is mostly due to an increase in dollars coming in from Xbox LIVE.

Just this week EEDAR released a study that shows 49% of gamers don't purchase DLC on their home consoles, but these figures show that digital downloads is still very much a growth area for publishers and hardware holders. As reported by Gamasutra, Xbox LIVE saw a 7% increase in revenue which amount to an extra $114 million.

Shipments of retail units however were down from 2.8 million units to 2.3 million - a fact attributed to last year's release of Halo: Reach.

Xbox Live Drives Game Division Sales, As Xbox Sales Decline [Gamasutra]


    Well, really, there are some absolutely A+ quality games that are only accessible via download, and quite a few of them start off as Xbox exclusives (the phenominal Limbo, for example) so it's really no surprise that they make so much off it.

    Plus with quite a few choice titles being recently reduced in price on live, it's just more incentive for people to start buying up MS points..

    The lack of solid, new first party retail titles has probably impacted on consoles sales too.

      True, the 360 hasn't really had a lot of exclusives as of late, but I can't help but imagine console and games sales overall have been in decline this year. I personally blame the developers who wanted to push their title back to the holiday season. Let's see, who was it who did that OH WAIT ALL OF THEM. ALMOST EVERY SINGLE DECENT GAME THIS YEAR IS COMING OUT IN Q4 WTF.

      *clears throat*

      I think we'll see a lot of sales picking up between now and year end, and probably through Q1 2012 as people take advantage of new year sales and pick up those holiday titles they missed.

    It's a digital world baby, keep up or drop out.

    point you miss out, same period of last year saw the release of the slim side by side with halo reach? that would explain the drop off.

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