Measuring success with Xbox Live instead
So, it’s no secret that Microsoft is losing to Sony strictly in terms of Xbox One and PS4 sales. Phil Spencer has even acknowledged this fact.
But it appears as if Microsoft is shifting gears a bit, and isn’t going to focus on console sales anymore. Instead, the metric used for success going forward is “Xbox Live usership,” and the Windows 10 and Xbox divisions have been merged when it comes to quarterly reports. Additionally, expect even less info than we get now regarding console shipments and sales. Microsoft is reporting that there has been a year-over-year decline, mostly due to the lower adoption rate of the 360 — likely, this number is due to users upgrading to the new platform of choice, the PS4.
So how are they doing now? Well, by the new metric, Microsoft reports 39 million Xbox Live users. But, the way said Live users are measured has been changed, as it now only counts people who have logged in within the past month, and there seems to be no dichotomy between paying and non-paying costumers.
Earnings Release FY16 Q1 [Microsoft via Game Informer]