During a call with its investors today, Microsoft announced revenue from gaming grew 6% over the same period last year. However, sales of software were offset by slowing Xbox console sales.
The decline in Xbox hardware revenue was blamed on "lower volumes of Xbox 360" consoles sold, according to Microsoft. Amy Hood, Microsoft's chief financial officer, mentioned the offset in gaming revenue during the call, saying the company saw growth both in Xbox Live services and its first-party game portfolio in spite of declining sales for its last-gen system.
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