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Xbox division sees 16 percent dip in sales for third quarter

Microsoft's Entertainment and Devices Division shipped 1.3m fewer Xbox 360 units

Microsoft's third quarter was not kind to the Entertainment & Devices Division, which houses all things Xbox 360. Overall sales for the division hit $1.62 billion, a 16 percent decrease year-over-year. Microsoft attributes much of the losses to a "soft market," as game sales continue to decline according to NPD.

Despite carrying 15 consecutive months as the top selling console, the Xbox 360 saw a 33 percent decrease in hardware sales for the quarter. Sales for the console, which came to $584 million, were down mainly due to a "decreased volume of Xbox 360 consoles and standalone Kinect sensors sold."

Despite carrying 15 consecutive months as the top selling console, the Xbox 360 saw a 33 percent decrease in hardware sales for the quarter.

Things are perhaps not all bad, as Microsoft acknowledges an increase in revenues in other sectors; the tech giant attributes much of their sales to increased digital purchases made through Xbox Live. Total hardware sales, however, were 1.4 million, a sharp decrease from 2.7 million this time last year.

Sales for hardware have remained on track with last year, with 11.9 million shipped at the end of Q3; this is about the same amount for Q3 2010. Game revenues have slightly fallen, largely due to a lack of strong titles to match Halo: Reach's numbers from 2010.

Microsoft on the whole is seeing a stronger year in terms of revenues. Microsoft reports $17.41 billion in sales, a 6 percent increase year-over-year. The firm is in the black with $5.11 billion in net income, slightly down from last year's $5.23 billion.

"We're driving toward exciting launches across the entire company, while delivering strong financial results," said CEO Steve Ballmer. "With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead."

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