Xbox One is selling better, but lower price drags down Microsoft’s revenues

Microsoft doesn’t provide a lot of details about its Xbox business anymore, but it does share certain key points that highlight how it is performing in the home gaming console sector.

The company’s gaming group saw a 6 percent increase in revenue year-over-year, according to its latest report. That’s up primarily due to strong software performance while Xbox hardware revenues saw a decline. That drop comes even as the Xbox One has sold better (via ZhugeEX) through the first nine months of Microsoft’s fiscal year as opposed to the same period in 2015. Recent rumors have suggested that Microsoft and Sony are keenly aware of how their price was has dampened their hardware revenues in the $99.6 billion gaming market, and that’s why both companies are reportedly working on upgrades for their current generation consoles.