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Hardware sales down, game sales up.

Gaming revenue dropped by 5 percent, representing a decrease of $110 million from the same period last year. The downturn was attributed in part to lower Xbox console sales, but helped by stronger game and Xbox Live revenue. Hardware revenue specifically dropped 26 percent, a decrease that Microsoft mainly attributed to fewer consoles sold (Xbox One and Xbox 360 combined) and lower prices of consoles sold. Microsoft no longer shares hard data about how many Xbox consoles it sells.

The better news for Microsoft was that Xbox game sales and revenue from Xbox Live increased 6 percent, though a dollar figure was not provided. The uptick in money derived from Xbox Live was attributed to more Xbox Live transactions and more revenue per transaction.

Taken from:

http://www.gamespot.com/articles/hows-xbox-doing-here-are-the-key-takeaways-from-mi/1100-6444661/