Xbox revenues down 3%, but digital transactions reach $1 billion

Microsoft’s gaming division isn’t making as much money as the price of an Xbox One continues to fall, but the company is seeing growth in software, digital sales, and other sectors.

Xbox revenues reached $3.595 billion for the company’s fiscal Q2 2017, which is down 3 percent year-over-year. The company specifically noted that lower Xbox console pricing and lower console volume drove that decrease. Part of that is this is the first holiday season that the company did not have new Xbox 360 hardware sales. Microsoft and Sony are also both facing a saturated market of core gamers who have already spent money on hardware and are now spending more on games.