Microsoft had a rough quarter, due in large part of its gaming business. Xbox One and Xbox 360 revenues were down 24% year over year during Microsoft's fiscal third quarter, the company reported today.
The Redmond-based giant's gaming division overall reported $1.8 billion in revenue, which is down 4% year over year. Microsoft's Computer and Gaming Hardware division, which houses the Xbox business, saw its revenue fall $72 million.
The company blames lower sales for both the Xbox One and Xbox 360, which sold roughly 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. Microsoft did not break out sales of its new Xbox One console versus sales of the legacy Xbox 360 console.
The other reason it gave for the revenue drop is that Xbox One had a massive price cut this year. Earlier, the Xbox One come bundled with the Kinect camera and cost $500. Later, the tech giant started selling unbundled version of the Xbox One without the Kinect camera. Currently, the Xbox One retails for $350 without the Kinect camera.
According to the NPD group, Sony's PlayStation 4 console outsold the Xbox One last month. The PlayStation 4 continues to grow over the Xbox One and shows no sign of slowing down.