Microsoft's Xbox Console Revenue Takes a Sharp Decline Amidst Hardware Price Hike.
In Microsoft's latest earnings report for the quarter ending September 30, the company revealed that its revenue from Xbox hardware plummeted by 30 percent year-over-year. The decline in console sales does not appear to be directly related to the recent price increase of $20-to-$70, which took effect on October 3, nor the subsequent hike of Game Pass Ultimate subscriptions from $20 to $30.
However, Microsoft did report some positive growth from Xbox content and services, with revenue remaining largely unchanged compared to the same period last year. The company attributed this success to increased popularity among Xbox subscriptions and third-party content, which somewhat offset the decline in first-party gaming content.
The situation surrounding Xbox hardware is more complex, having been impacted by Microsoft's decision to cut down its global workforce earlier this year. As a result, several high-profile game projects were either cancelled or put on hold, including the modern reimagining of Perfect Dark and Everwild. These developments further highlighted the challenges faced by the Xbox division in recent months.
Notably, Microsoft's overall revenue saw a significant increase, rising 17 percent compared to the same period last year, with an operating income that more than doubled. In addition to its gaming efforts, the company announced plans to expand its AI capabilities by 80 percent this year and nearly double its data center footprint over the next two years.
In Microsoft's latest earnings report for the quarter ending September 30, the company revealed that its revenue from Xbox hardware plummeted by 30 percent year-over-year. The decline in console sales does not appear to be directly related to the recent price increase of $20-to-$70, which took effect on October 3, nor the subsequent hike of Game Pass Ultimate subscriptions from $20 to $30.
However, Microsoft did report some positive growth from Xbox content and services, with revenue remaining largely unchanged compared to the same period last year. The company attributed this success to increased popularity among Xbox subscriptions and third-party content, which somewhat offset the decline in first-party gaming content.
The situation surrounding Xbox hardware is more complex, having been impacted by Microsoft's decision to cut down its global workforce earlier this year. As a result, several high-profile game projects were either cancelled or put on hold, including the modern reimagining of Perfect Dark and Everwild. These developments further highlighted the challenges faced by the Xbox division in recent months.
Notably, Microsoft's overall revenue saw a significant increase, rising 17 percent compared to the same period last year, with an operating income that more than doubled. In addition to its gaming efforts, the company announced plans to expand its AI capabilities by 80 percent this year and nearly double its data center footprint over the next two years.
the Xbox console revenue decline is wild considering how hyped people were for those new games 
and it's weird that Microsoft didn't see a direct impact from the price hike or Game Pass Ultimate changes... maybe they're just not getting their message across or something? interesting 
but at least content and services are still doing alright 
they need to focus on more indie games and stuff like that lol
by these numbers! i mean, microsoft's xbox console revenue took a huge hit... like 30%?! that's crazy talk! 
and they're investing big time in ai and data centers - that's some next level stuff 
i mean, i'm all about that gaming life too, but it seems like xbox might need to get its act together ASAP 
maybe revamp their game strategy or something idk, but im excited to see what microsoft comes up with next 
but hey, microsoft's doing alright financially 
fingers crossed 
I gotta be honest, my kid was really into Xbox back in the day 
. I mean, $70 for a new console? That's just crazy 
. It's like they're exploring new frontiers or something 
. But at the same time, it's hard not to feel for Xbox fans who were really invested in those cancelled game projects 
.
, and Game Pass Ultimate seems like a great deal 
. Maybe the price hike will just make them appreciate the service even more? 
. but hey, at least they're doing alright with xbox content and services, right? 
that's the bright side, i guess 
.
. I mean, they just raised prices on consoles and it's like people aren't biting... or are they? 
Their gaming content & services are doing alright tho, but that 30% decline in console sales is no joke 
. Microsoft's decision to cut down its workforce might be a big factor here