Microsoft has released its latest earning results for FY23 Q3 and Xbox’s gaming revenue is down by 4% year-over-year.
Although Xbox’s content and services revenue grew by 3% – with growth driven once again driven by the Xbox Game Pass service, hardware revenue has taken a hit, with a decline of 30% compared to the previous year.
Microsoft linked the hardware decline to supplies. This also happens to be the lowest quarter of Xbox hardware revenue since the tech giant launched the Xbox Series X|S consoles in 2020, as highlighted by The Verge.
Here’s what the official document had to say, noting how the previous year had “increased console supply”:
“Xbox hardware revenue declined 30% (down 28% CC) on a prior year comparable that benefited from increased console supply…”
Despite this decline, Microsoft CEO Satya Nadella says the company set third-quarter records in terms of monthly active users and devices – reaching nearly $1 billion in revenue from these subscriptions.
For this same period, Microsoft banked a whopping $52.9 billion, up by 7% year-over-year.
Microsoft is predicting growth in games revenue for the next quarter and there are obviously more first-party releases on the way like Starfield and Forza Motorsport. Next month also sees the arrival of Arkane Austin’s release, Redfall. Of course, Microsoft is seemingly on the cusp of closing the Activision Blizzard acquisition as well.
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[source microsoft.com, via theverge.com]