Microsoft's Entertainment and Devices division raked in $3.8 billion in revenue during the last three months of 2012, the company announced today. That number represented an 11 percent decline compared to the same period a year ago. The division is responsible for Windows Phone, Xbox and other devices. While revenues were down, so were marketing cost which made it easy for the Entertainment and Devices division to record a pre-tax profit of $596 million – a 15 percent increase over the same period a year ago. The Xbox 360 generated $1.1 billion less than last year – a 29 percent decrease – on 5.9 million Xbox 360 consoles shipped during the period. That number was down dramatically from last year's 8.2 million units.
"This was due mainly to lower volumes of consoles sold and lower video game revenue," the platform holder said.
As a whole, Microsoft reported $21.5 billion in revenue and $6.4 billion in profits.
With the Xbox 360 at or near the end of its life cycle, the decline in sales and software comes as no surprise to anyone. GDC or E3 will prove to be an important moment for Microsoft to reveal its plans on its next-generation system.