Microsoft released its earnings last week, and apart from the Xbox division, everything else seems to be in check. No doubt the success of the PlayStation 4 is making life difficult for Xbox head, Phil Spencer and Microsoft overall.

The company could only manage to ship 1.6 million Xbox consoles this quarter, which includes Xbox 360 and Xbox One. It is clear that dropping the price to $349 is not enough to kick things into gear because the PlayStation 4 at $399 is still going strong.

During the same period back in 2014, Microsoft shipped 2 million consoles to retailers, and at that time the price of the device was $499. Chances are, all the main Xbox fans have gotten their console, which could be the reason for low sales. If not, then it could have a lot to do with not having any killer first-party title available.

On the matter of Microsoft's gaming division on a whole, it experiences a loss in revenue of over $72 million. The low income has a lot to with disappointing sales from the Xbox platform, and since Microsoft doesn't have a first-party title coming out soon, the same is expected for the next quarter.

Bad news is not all, as Xbox Live and store revenues have increased by 32 percent or $144 million. This was due to an increase in the total number of Xbox Live users, probably because of the price-drop.

When Windows 10 is released later in the year, Xbox Live and store sales will likely see another increase since the platform is expected to be a central part of the new operating system's experience going forward.

The company's first-party titles saw an increase of 49 percent in sales; this is mainly due to the continued success of Minecraft. It has proven that Microsoft was right to purchase Mojang when it did because the sale has become a saving grace for the company's bottom line.

Overall, Microsoft posted $21.7 billion in revenue, which is up from $20.4 billion in the same quarter, back in 2014.

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