Microsoft’s commercial video game console, Xbox 360, has been on sale for years, selling out.
But it was not a huge hit in the year after it went on sale in 2007.
Now, a new report from market research firm Strategy Analytics shows that revenue fell 7.3% to $3.86 billion, compared to $4.15 billion in fiscal 2008.
The report showed that revenue for the Xbox 360 was down 12.3%.
The company says that it has cut back on its spending in the wake of the recession, and that it expects sales to rise to $6.4 billion in 2018.
The video game industry has experienced a downturn in the last several years, as games become more and more expensive.
Microsoft has been the target of a number of consumer lawsuits, alleging that the company has a monopoly on the console business.
Microsoft’s strategy of keeping prices high in the face of competition has hurt the video game market, according to Strategy Analytics, and the company will need to keep selling consoles if it wants to keep revenue up.