Microsoft's Device and Entertainment division generated $3.8 billion in revenue in October, November and December, as 5.9 million Xbox 360 consoles were shipped, which is down from 8.2 million during this time last year.
Microsoft has also made $1.1 billion less than it did last year. According to Microsoft, this was
Originally posted by Microsoft
due mainly to lower volumes of consoles sold and lower video game revenue.
Never the less, the Entertainment and Devices Division, saw profits up and revenues down. This was due to a reduction in marketing costs, and the latter was a because of dwindling demand for Xbox 360 consoles.
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Actually last December Microsoft sold a record number of Xbox's, nearly doubling the amount of PS3's and Wii U's sold. As for their revenue going down, it's because it's freaking old! Xbox is already releasing their Xbox 720 so them selling that much Xbox 360's should be good. So I don't think this matters to Microsoft.