Microsoft blames an "increased mix of lower price Xbox One" consoles.
Looks like those who had to purchase the Xbox One had already done so when it was launched or people simply aren’t buying any more consoles. According to Microsoft’s recent report this year for the three months leading up to March 31st, Xbox One’s revenue has shown a decline as compared to the previous year. According to the company, much of this change in the revenue has been derived through sales of an "increased mix of lower price Xbox One" consoles.
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Microsoft itself reduced the price of the Xbox One which then got down from $500 to $400 and there was also no presence of Kinect back in June 2014. Since then, the Xbox One has seen another price cut of $50 and we see why the value of sales hasn’t done much to contribute significantly to the revenue.
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Much of the mistake is on part of Microsoft itself and we are not only referring to the price cuts. For the Q3 2015 financial report, Microsoft failed to separate sales of each console (Xbox One and the Xbox 360). Hardware revenue only fell by 4 percent as Surface tablet sales went up by 44 percent through the last year and got to $713 million.