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Xbox One shipped 1.2 million in first quarter 2014, revenue grew 12 percent

Xbox One
Xbox One
Microsoft

Microsoft revealed its earnings for the first quarter of 2014 on Thursday and with it, how many Xbox One consoles it shipped to retailers during that timeframe. This comes after a recent announcement that the company sold-in (i.e. shipped) five million units since it launched.

1.2 million Xbox Ones were sold to retailers from January 2014 through March 2014, according to Microsoft’s earnings statement. The company reported a total of 2 million Xbox consoles sold, which implies that the Xbox 360 still shipped out approximately 800,000 units during the same period. That’s actually a strong number for the eight-year old console.

The Devices and Consumer group, which encompasses Xbox consoles and other devices like Surface, saw its revenue grow 12 percent to $8.30 billion for the quarter. Total hardware sales for the group were up 41 percent over the same time last year thanks to the introduction of the Xbox One. However, this number obviously was lower than fourth quarter 2013 when Microsoft reported that Xbox One and Xbox 360 sales were well past 7 million.

While these are solid numbers for the Xbox One and shows that the console is outperforming its predecessor, Sony’s Playstation 4 has had phenomenal sales to this point with the company recently announcing that more than 7 million units had been sold to customers worldwide. If you guesstimate that Microsoft’s 5 million sold-in number translates to 4 million sold to customers, that gives the PS4 a healthy three million unit lead half a year into this console war.

April through June will likely prove to be more interesting for both companies though. The second quarter of the year is typically a slow period in the games industry and Microsoft warned on an earnings call today that it expects inventory drawdown on the Xbox. That translates to slower sales during the quarter.

The larger concern is not knowing how many Xbox One consoles have been sold to consumers. March saw frequent discounting of the console by $50 as well as the introduction of separate bundles featuring "Titanfall" and "Forza Motorsport 5". If retailer inventory becomes filled with the Xbox One, then the number of consoles shipped will drop.