Xbox revenues down 24% for Microsoft’s third quarter largely due to the Xbox One price cut

Microsoft cut the price of the Xbox One, and now that’s starting to cost it.

Xbox One and Xbox 360 revenues were down 24 percent year over year during Microsoft’s fiscal third quarter, the company reported today. The megaconglomerate’s computer and devices division reported $1.8 billion in revenue, which is down 4 percent year over year. The Xbox was a drag on that, and Microsoft credits lower sales for both the Xbox One and Xbox 360, which sold 1.6 million combined units down from 2 million in Q3 2014, as well as a lower average sales price for the downturn in its gaming division.