Microsoft’s Xbox revenue declined 5% last quarter despite winning some U.S. market share from Sony

The Xbox One had a strong quarter in the United States, but Microsoft’s gaming division still saw an overall decline.

Gaming generated $1.9 billion for Microsoft in the first quarter of fiscal year 2017, which covers the three-month period ending September 30. That’s down 5 percent year-over-year. Microsoft explains that a lower average sales price of the Xbox One was the biggest reason for the decline, but this also helped the system outsell Sony’s PlayStation 4. The worldwide gaming business is worth $99.6 billion, and Microsoft is battling it out with Sony in the console sector and attempting to rehabilitate the image of Windows gaming to compete for as much of that cash as possible. That is starting to work when it comes to the Xbox One.