Xbox One console revenues have slowed, but software and services are strong

Microsoft‘s gaming division generated $1.657 billion during its fiscal Q4, and that is up $44 million or 3 percent year-over-year. Xbox game sales and services picked up a lot of momentum and were more than enough to make up for a dip in revenues from hardware.

Console sales are bringing in less cash for Microsoft as the average price for an Xbox One continues to fall. The company released the Xbox One S last year as part of an effort to protect the price on its system, and it will do something similar later this year when it launches the more powerful Xbox One X. It’s the game sales, Xbox Live subscriptions, and other services that are bringing in the stacks for Microsoft now.