Xbox-One-With-controllerMicrosoft’s decision to slash the price of its gaming console is affecting the company’s bottom line.

In its quarterly earnings report, the Redmond giant noted today that revenues from Xbox One and Xbox 360 were down 24 percent from this time last year.

Microsoft said that the Xbox One price cuts and “lower console units against prior year post launch quarter” resulted in the revenue decline.

When Microsoft debuted the Xbox One in November 2013, it priced the console at $500. However, the company began selling a Kinect-less Xbox One for $400 in mid-2014. Later that year, Microsoft dropped the price to $350, and continues to sell the console at that price point today.

Sony’s PlayStation 4, meanwhile, debuted at the same time but for $100 cheaper at $399. The PS4, which still sells for $399, has outpaced the Xbox One in both U.S. and worldwide sales.

Microsoft beat analysts estimates with its earnings report today with $21.7 billion in quarterly revenue and earnings of 61 cents per share for the quarter ended March 31.

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