Microsoft FY16 Q1: Xbox sales down 17%, XBL MAU users up 28% to 39M

Xbox Live monthly active users (MAU) grew 28% to 39 million during Microsoft's last financial quarter, the company reported today; however, due to a decrease in Xbox 360 sales, revenue from consoles sales declined.

Gaming revenue increased slightly, as growth in revenue from Xbox Live and video games was offset in part by lower Xbox hardware revenue.

Xbox Live revenue increased 17%, driven by both higher volumes of transactions and revenue per transaction. Video games revenue grew 66%, driven by sales of Minecraft.

Xbox hardware revenue decreased 17%, mainly due to lower volumes of Xbox 360 consoles sold. Video games revenue grew 66%, driven by sales of Minecraft.

The Personal Computing segment, in which Xbox and Windows 10 is housed, reported $9.4 billion in revenue (down 17%) compared to $11.2 billion year-over-year. Xbox consoles were previously housed in the Consumer Devices division.

Revenue in the entire sector (devices which include mobile, Windows) decreased $1.9 billion mainly due to lower revenue from Devices and Windows, offset in part by higher search advertising revenue. An unfavorable foreign currency impact of approximately 4% also affected the division.

Microsoft said for the quarter ending September 30, net income came in at $4.62 billion compared to $4.54 billion year-over-year.

Revenue fell $20.38 billion from $23.20 billion year-over-year.