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Xbox 720 anticipation leads to slump in console sales for Microsoft

by William Schwartz

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Sales for the Xbox 360 have remained pretty strong, despite the console having been around for longer than any other before it.  Microsoft’s most recent earnings report paints a picture of a division for the company that is in decline, and likely due to the anticipation of a next-generation system.

Microsoft saw lower revenue numbers in the quarter, which was largely driven by lower Xbox 360 console sales.  The company saw a year over year drop in sales from the same quarter in 2011, despite the console remaining to be the number one seller in North America.

The Entertainment and Devices division which the Xbox 360 falls into, was down about 11 percent in the quarter, but that’s not all attributable to the Xbox 360.  The division also includes its Windows Phone businesses and other aspects of the company.  Offsetting the fall in revenue, operating income was up due to lower marketing expenses.

Many believe that Microsoft is due to announce the “Xbox 720” in the coming months, and it won’t come soon enough for the struggling console.  This generation has turned out better for Microsoft than they could’ve imagined, but it appears that Microsoft has little left in its bag of tricks to keep the Xbox 360 hopping off store shelves.

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