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Microsoft Shipped 6.6 Million Units of Xbox, Platform Revenue Slides to $703 million

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Microsoft only shipped 6.6 million units of its Xbox gaming console despite a "strong holiday season performance," which is a slide of 7.4 million consoles when compared to the same period in 2013.

On Monday, Jan. 26, Microsoft announced its earnings results for quarter ended Dec. 31, 2014. Adding to the string of disappointments for the company was the platform revenue which was down $703 million as a result of low shipments. The transition from Xbox 360 to Xbox One also played a pivotal role in the resulting 20 percent decline per the company, which cited "customer preference for new generation of consoles."

However, the company did not give a detailed breakdown of the Xbox One and Xbox 360 sales. Microsoft did reveal that the Xbox One outsold competitor PS4 from Sony in the U.S. during the holiday season i.e. November and December 2014.

In November 2014, Microsoft revealed that the Xbox One shipment figures were 10 million units.

Adding to Microsoft's woes was the fact that it generated lower revenue from its third-party and second-party games and accessories.

Microsoft's total revenue for the period was $26.5 billion, which was up from $24.5 billion in the same period in 2013. The gross margin was $16.3 billion. Operating income and diluted EPS were $7.8 billion and $0.71, respectively.

The net income however declines and was down to $5.8 billion, when compared to $6.6 billion during the same period in 2013.

The revenue for Microsoft's Computing and Gaming Hardware also slid by 11 percent or $473 million during the period. This decline too has been attributed partly to less revenue from the Xbox platform.

A silver lining for the company was in the form of its Devices & Consumer division's "Other" category. This increased by 30 percent or $562 million owing to "higher revenue from first-party video games."

Moreover, the game revenue for first-party video games saw a jump of 79 percent ($171 million) thanks to the phenomenal sales of Minecraft and the release of popular titles like Forza Horizon 2 and "Halo: The Master Chief Collection."

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