Xbox 360 sales are down year-on-year, with Microsoft shipping 2.3 million units worldwide in the last three months compared to 2.8 million during the same period in 2010.
However, as revealed in the platform holder's quarterly financial report today, Xbox 360 revenue has actually gone up by seven per cent, thanks to increased Xbox Live profits.
Microsoft also announced that the console has now sold a total of 57.6 million units worldwide since launch. In comparison, the PlayStation 3 had sold 51.8 million and the Wii 87.6 million as of 30th June this year.
Though it didn't offer precise figures, software revenue was also down, with Microsoft pinning the blame on particularly strong Halo: Reach sales this time last year.
Operating income from its entertainment division (which also incorporates Windows Phone 7 and internet TV set-up Mediaroom) was down nine per cent from $386 million to $352 million.