Microsoft has reported Q1 sales figures for its Xbox division, revealing a steep drop in operating income compared to the same period from the year prior.
The firm shipped 1.7m Xbox 360 units during the financial period ending on September 30th, down from 2.3m shipped in Q1 2012.
Revenue for Xbox 360 declined $418m (down 24 per cent YOY) and operating income dropped 94 per cent to $19m.
The company explains the lackluster numbers are due to a smaller release slate lacking a blockbuster title.
Video game revenue decreased primarily due to the release of Gears of War 3 in the first quarter of fiscal year 2012 with no comparable major releases in the first quarter of fiscal year 2013,” a statement in the report read.
Microsoft also points to lower volumes of consoles sold and lower video game revenue, offset in part by higher Xbox LIVE revenue.”