Microsoft Q1 2017: Gaming Revenue Decline 5%, Xbox Live Users Down 2M

Microsoft has reported its Q1 fiscal earnings, and there isn’t anything too out of the ordinary, except for the More Personal Computing’s sector revenue.

Xbox is housed in this sector, and revenue declined 2% to $9.3 billion year-over-year. Gaming revenue declined 5%, driven by lower Xbox console revenue offset by higher Xbox software and services revenue and brought in $1.9 billion in sales.

Xbox Live monthly active users hit 47 million for the quarter, which is up from 39 million year-over-year, but down two million compared to Q4 2016 when the company reported 49 million. This is unusual, considering the sales of Xbox One were up, per NBD results, over the last three months. Even if current user were to upgrade to Xbox One S, that wouldn’t explain the decline in XBL users.

During the previous quarter, MAU grew 33% year-over-year and was a 3 million uptick since the firm announced its Q3 2016 results noting 46 million Xbox Live users.

By going by these year-over-year figures, Q1 2017 figures are up 8 million users compared to Q1 2016 with 39 million MAU.

“Xbox One won US console market share for Q1,” Microsoft said today, adding that the best-selling, first party title for the quarter was Forza Horizon 3.

The company as a whole reported $20.5 billion in revenue, with $4.7 billion net income for the quarter.