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Xbox console sales up, but third-party game sales down

The Xbox One has driven up both Microsoft's revenue and costs year-on-year -- and its hardware division made gains of over a billion from the comparable quarter, the latest results reveal.
Microsoft today released its financial results for the first quarter of its 2015 fiscal year, which show that the Xbox One has helped it move more hardware and make more money year-on-year -- but if you dive in, it's not quite so simple. Revenues for its Computing and Gaming Hardware division, which includes its Xbox consoles and also its Surface tablets, leapt from $1.4 billion to $2.45 billion for the quarter year-on-year, a big gain. Last year, during this period -- which ran from July 1 till September 30 -- the Xbox One had yet to launch. The division also made gains compared to the prior quarter, when its revenue sat at $1.44 billion. Xbox Platform revenue increased $538 million for the period, the company said, due to a higher volume of sales and a higher price for those consoles. However, third party game sales dropped year-on-year, leading to a decline in revenue from fees. The company sold 2.4 million Xbox consoles (including both the Xbox One and the Xbox 360 -- the company doesn't break down sales) during the quarter; it sold 1.2 million Xbox 360s a year prior. The costs of selling them were higher, too -- because of the higher cost of the Xbox One hardware. Xbox One also launched in 28 new markets during the quarter. First-party video game revenue, which Microsoft records under its Devices & Consumer Other segment, increased $79 million year-on-year, which the company primarily attributes to the launch of Forza Horizon 2 for the Xbox One, as well as unspecified Xbox 360 title re-releases. Overall, the company's revenue jumped from $18.53 billion to $23.2 billion year-on-year for the quarter, as many of its segments made gains.

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