It looks as though Microsoft's Xbox platform isn't doing so well, with revenue dropping 29% year-over-year when comparing 2011 to 2012. Microsoft reported their results for the second quarter of their 2013 fiscal year, which runs from July 1, 2012 through to June 30, 2013.
Microsoft may have been making a point of their record-breaking $21.46 billion in revenue, which was a 2.7% increase over 2011, but the Entertainment and Devices Division - which includes Xbox, Windows Phone and Skype - dropped by 11%, from $4.24 billion to $3.78 billion.
From October to December of last year, Microsoft shipped 5.9 million Xbox 360 consoles, a sharp 28% drop from the 8.2 million in the same quarter of 2011. Microsoft also pumped $98 million into research and development costs for the three-month period, which hopefully is for the next-gen console.